The most popular music videos take anywhere from six months to two years to make a profit, according to Kaleen and Burt. Most videos are produced by agencies and labels, as well as YouTube’s own programming and marketing, which is a lot of the reason YouTube has earned so much interest in the space. Burt estimates that $7 to $10 is needed to make a music video, and a video can take anywhere from three to five days to see a profit. It’s also a very time-consuming process.
As a result, music videos, including the YouTube version, take significantly longer to make than other forms of television advertising. Kaleen estimates that a song can take anywhere between 50 to 700 hours to make a profit.
“Even if you’re just giving away music on YouTube in lieu of a TV spot or feature, it’s still a significant investment,” Burt adds. “It’s a long-term investment to produce a whole video and have it be well received and make money off of that.”
What YouTube makes
“With the video ad industry going through these kinds of changes, YouTube is just one of the main engines, because it’s so easy for them to keep the costs down,” says Jeff Haver, founder of Chappell.com, which tracks the music industry. “They really just have a set of rules, and it’s like a magic box.”
YouTube’s ad policies prohibit any of the following: paid promotion, paid-for placement on any video, paid in-video advertising, paid in-game advertising, paid in-view ads, paid in-stream advertising or paid in-video promos. In addition to video monetization, YouTube prohibits in-video giveaways or contests or paid in-game advertising, among other things.
YouTube doesn’t publicly disclose how much money it makes from online video advertisements, but according to Kaleen, it’s in the neighborhood of $2 billion annually.
According to Kaleen, the most popular YouTube videos on the site are “influencers” — people you already know and follow. Influencers have generated more than 400 million views to date.
Kaleen believes that YouTube has the ability to improve its algorithm, which allows for monetization in a way that is both time- and user-friendly. For instance, if you just want to pay attention on YouTube’s main “videos” page — like, for instance, watching a video of your
online videography degree, event videography tips, dslr video production, how to film yourself with a phone, how to film yourself walking