
It’s important to first understand how
publishers make money from YouTube or
other video-sharing websites. Although
there are many potential monetization
methods (discussed below), the most
common involves getting paid from
advertising revenue generated on
your videos.
A background of YouTube may be helpful
at this point. The video sharing site was
founded in early 2005 and acquired by
Google in October 2006 for about $1.65
billion. Google has continued to operate
YouTube since then, gradually integrating
it with other products. That parent-child
relationship helps when understanding
how money is made on YouTube. Just as
Google serves ads next to search results
and on pieces of content within its
network, it also serves ads during videos
(much more on this below). As one of the
largest ad networks in the world, Google
brings to the table relationships with
thousands of advertisers all over the
world. In the case of YouTube, it relies on
users to create the content where those
ads can be hosted.
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