- If you monetized your YouTube channels
sometime in the last 12 months,
you're probably freaking out right now,
trying to figure out why the income on your videos
has suddenly collapsed.
Well, I'm sorry to say this, but it's your own fault.
And let that be a lesson for you.
Don't trust YouTube AdSense.
Let me show you what I mean.
This channel is running up to the end of the year,
with a daily revenue of between eight and 11 dollars,
which is fair enough.
But the moment we see the channel tick over to the New Year,
daily revenue drops to between five and seven dollars,
a more than 25% decrease.
Now you may argue,
that this has something to do with views, right?
Wrong.
Over the time period in question,
views were incredibly stable.
If anything, they went slightly up
and yet the daily revenue for the channel clearly
and suddenly drops.
So if this has happened to you,
let us all share in this collective misery,
by adding your stories in the comments below.
And while this video is mostly about the trials,
tribulations and pitfalls of YouTube AdSense,
do make sure to stick around to the end
because I have something truly mind blowing
that's gonna put all of this into perspective.
So what on earth is going on here?
Is 2022 gonna be a nother year of YouTube
sticking it to creators, whenever they get the opportunity?
Well, obviously no,
because if you've been monetized
for any longer than 12 months,
you will know that this decline in ad revenue
is somewhat of an annual YouTube tradition.
In previous years for the channel seen here,
the ad revenue drop has been even steeper,
and you know what?
This is gonna happen next year
and the year after that,
and a year after that and so on.
And there's one very simple reason for this.
Everyone's run out of money,
although I do have this lovely Vid IQ sticker.
What do you do in the run-up to the holiday season?
You buy gifts, of course, for yourself, family, friends,
pets, everyone, except me.
And you often do that
under the influence of advertising
and YouTube is no different.
Brands will push their products
as aggressively as they can while people are spending money.
And then come January,
everybody gets their credit card statements
and goes off into financial hibernation
for a couple of months.
And it's pretty much the same scenario for most brands.
They spend the majority of their advertising budget
in the final quarter of the year.
Now, if you look at the YouTube algorithm
or recommendation system
and how video views fluctuate over time,
one of the major factors is seasonality.
And it's exactly the same for YouTube ad revenue,
seasonality affects what adverts are shown to viewers
and how much it costs to put them on YouTube.
And for most brands,
this seasonal advertising inflection point
comes around like clockwork,
every single year on the 31st of December.
But not every brand.
(indistinct chattering)
- I'll take this
out of your way. - Still going.
No no no.
- Yes, if you're in the business of selling
a New Year's resolutions,
then now might be peak advertising season.
If there are any fitness channels, diet channels,
or any other channels who are experiencing an increase
in ad revenue and CPM,
do let us know in the comments below.
And enjoy it, you've earned it.
But generally speaking from a creator's perspective,
what can you do to mitigate this sudden unavoidable,
inevitable plunging revenue every single year?
We can create a little smarter.
The amount of advertising in your video topic
is pretty predictable over the course of the year.
So if you know when CPM
and ad revenue increases in your video space,
then make content you know our audience is going to watch
during those time periods
and make as much of it as possible.
Just as a simple example,
there is a reason why tech channels
do Black Friday live streams
and gift buying ideas
over the course of November and December.
Then when ad revenue starts to decline,
reduce your video output.
If you don't do that,
then the logic is unfortunately pretty simple.
You're working just as hard,
but being paid a little bit less.
Instead, invest the money you earned
during those lucrative ad revenue days
and the time you're gaining by not making videos,
and re-invest it all back into a channel.
That could be through buying
and learning how to use new equipment
for your YouTube videos.
It could be taking a online course
to improve your editing skills or your on-camera presence,
or simply take a break,
recharge your batteries,
come back when ad revenue starts to stabilize.
And it will, it always does.
But perhaps more importantly than anything I've just said,
here's what you need to do with YouTube AdSense.
You need to stop relying on it.
You have almost no control
over how much you get paid for adverts
on your YouTube videos.
The only solution to that is to get more views,
and even then you still might not get more ad revenue
depending on the time of year.
And YouTube holds all of the keys,
they can flip a switch and it affects you.
Instead, seek out a brand deals and sponsorships
where you at least have the power
to negotiate your own value.
Develop products, services emerged
that you can sell directly to your audience.
And if you talk about and review products in your videos,
make sure to set up affiliate links,
so you get a little bit of kickback from them.
In most cases, Ad Sense revenue makes up a small percentage
of the total income of a successful YouTube channel.
But all of that requires you to turn your YouTube channel
into a business.
Remember, create smarter.
Now having said all of that,
YouTube ad revenue is incredible for one thing,
long-term passive income. Let me show you what I mean.
The revenue data I showed you earlier on in this video
all comes from my old YouTube tech channel.
When I joined Vid IQ,
I mothballed the channel
and haven't published a single video in almost four years.
Fun fact, one of the play buttons from my shelves
comes from that channel.
Anyway, have a guess how much revenue
I've earned from that channel,
since I last published a video?
I'll give you five seconds.
(gentle music)
Without lifting a finger in almost four years,
the channel has generated more than $28,000.
And you know what?
I think I've invested that money very, very wisely
in some pretty awesome NFTs.
And if you wanna learn more about how to earn money
beyond YouTube ad revenue,
then check out this video over here,
it's awesome as well.