YouTube started showing ads on some producers’ videos as of yesterday, but a certain percentage of the revenue from these ad impressions will not be earning them. Because these producers are not big enough to be included in the Producer Partner Program.
When ads are shown on YouTube videos, the producer of that video will normally receive a portion of the revenue from ad impressions through the YouTube Partner Program. Along with the new monetization rules added in line with the update made in the service specification of the platform, a producer not in the partner program will also be able to see advertisements on some of their videos.
Prior to the update, YouTube said that ads were only added to these videos under limited circumstances. If a record company had a copyright claim on a particular video, it would show ads. The update will mostly affect small producers who do not have high views. YouTube’s Partner Program requires producers to have more than 1000 subscribers and a total of over 4000 hours of watch time in the last 12 months to become partners.
Ad display is the biggest source of revenue for YouTube and its parent company Google. The video site generated $ 5 billion in revenue in the last quarter alone. In addition, commercials create a great opportunity for producers. Many producers do their work with the payments made by the site. Now YouTube will show more ads on its platform and will not have to pay a certain number of producers during that show. In the meantime, YouTube said in a statement to The Verge site that ads will not be shown on videos of non-partner producers on sensitive topics such as politics, religion, alcohol use or gambling.
However, this news was not well received among members of the YouTube community. The producer audience has had a friction with YouTube for years over ad revenue. YouTube producers under the Partner Program in late 2016 and early 2017 experienced a sudden drop in ad revenue. Because the platform had problems hosting annoying kids videos or other harmful content. In 2018, changes were made to the Partner Program due to some of Logan Paul’s actions, making it even more difficult for producers to earn money.
YouTube has not announced how many producers will display ads on their videos without paying commission. However, the company said ads could show on channels of any size. The company noted that it will also observe the effect on the producers.