Category Archives: advertising

advertising, Making Money, marketing, poopie head, popular videos, Viral Video, YouTube

Exclusive: How Much Money YouTube Partners Make

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{Update from 2013 reveals YouTube stars making $4 million plus per year}

How much do YouTube stars make each year? Oh for goodness sakes. Just like my same 5 YouTube videos (see right column of channel page here) represent the majority of my online views… It seems that most of WillVideoForFood’s blog traffic comes from people searching for how much YouTubers make. If you’re curious, read on. If you want to make big bucks, buy my book first. You’ll still be facing tough odds, but at least you’ll wander into the jungle equipped with some survival tools.


We YouTube “Partners” (or “stars” as I hate saying) are all contractually forbidden to share our revenue. But I’ve given hints and clues over time. For those of you who Googled your way here, I’m both a marketer/advertiser and a creator/YouTuber, so that gives me two lenses into this Da Vinci-Code like mystery. Davinci made me think of “Da Bears.”

I’d estimate there are have at least a few dozen YouTube Partners earning $100K per year. That’s great money if you’re in your 20s or 30s and have minimal costs in production or overhead (like 4 kids and a horrific mortgage). But it’s a rounding error for a professional content creator or network.

To calculate a particular Parner’s income, here are some tips:

  • You basically take the Partner’s total views for the month, multiply it by a fraction of a penny, and you have a rough idea. TubeMogul‘s Marketplace shows some of the most-viewed people (and their monthly views). But remember: the most-subscribed are not necessarily most-viewed and vice versa. YouTube doesn’t give a hoot how many subscribers you have (although that certainly helps drive views, but increasingly it seems less powerful than being a “related video”). In general, the commercial content is getting more daily views but the amateurs have a lock on subscribers.
  • Most ads are placed by advertisers based on total 1K views, but some is on a per-click basis (CPC text ads placed by Google Adwords/Adsense). Google/YouTube is usually paid by an agency or media buyer a CPM (cost per thousand, say between $5 and $25 dollars per thousand views), then shares some of that with the creator. This can be highly misleading, because:
    • Some views earn nothing (if they’re embedded and no ad follows it).
    • And increasingly advertisers are paying a high premium for specific content they commission, target, or hand select. Sometimes this might average a few bucks and others it might be much higher… $25 CMP was the published rate of InVideo ads and I know of specific integrated campaigns that command a higher premium from YouTube. Yey!
  • Another confounding variable: potty-mouthed creator turns away advertisers. So watch the ads on your Partner for a while. Are they premium InVideo ads with accompanying display (square) ads? Or are they garbage Adwords/Adsense ads?
  • The text ads may SOMETIMES be paid on a per-click basis, which can make them fruitless or profitable depending on people clicking and buying the advertiser’s product (the latter must occur, or a savvy advertiser will quickly stop the campaign that’s raping them of click dollars and not generating business). I was telling my YouTube buds to turn these off because they’re ugly and don’t make much money, but a few of them gave me a stern stare like they knew otherwise. So whatever… maybe they make money and maybe they don’t. I don’t get a breakdown on them, and they’re still ugly.
  • Then you have to factor in “sponsored videos,” where a YouTuber promotes a product or service for a flat fee (or variable based on views) via Hitviews or related companies. That can easily be more than YouTube shells out per month for ad sharing. The going rate here is incredibly wide: from $1K to $20K and higher per video.

So in conclusion:

  1. Do your own math using monthly views on TubeMogul and assuming some CPM (cost per thousand), but recognize YouTube takes a cut and some of the advertising inventory isn’t sold or is driven by keyword Google adsense text thingies. Maybe the creator/partner gets a few bucks per thousand views and maybe more or less.
  2. Use some of the assumptions above to calibrate your estimate if you’re trying to peak into the W-9s of your favorite “Stars” like Fred. There are now dozens of popular YouTube people that make a full-time living on YouTube revenue, and I’d guess a lot of $50K-$100K per year people. I am not among the full-timers. With a family of 6, I gotta have a day job too. But Shaycarl, Sxephil, Charles Trippy, Michael Buckley and many more… they’re full-time at this. If I was making the bucks I’m making via YouTube after college, I’d probably go full-time too. Fred? Let’s just say he’s got college covered, or a nice nest-egg.
  3. Before you get excited (or jealous), it’s a long haul to cashville. And if you start with the hope of making money, you’re doomed. You need to LOVE it, and be extremely patient as the road to loads of views is tougher to climb, and requires an ass-load of persistence. Start as a hobby and “just keep swimming.”
  4. Finally, there are two forces at odds that impact the sustainability of this revenue for YouTube amateurs. First, we’ll probably see continued competition from more professionally-produced content that fetches higher ad dollars because it feels safer to squeamish media buyers (see, I’m not calling them all dense anymore… only the ones that don’t read this vlog). But the good news is that dollars are projected to grow dramatically. Currently, as a marketer, I’d argue that YouTube is selling itself short.

How’s that? About as specific I can be without breaking my contract or confidence from my friends.

I know some of you peeps know more than I do, so feel free to comment below anonymously or not. Da bears.

advertising, Blogs on Video, book, Future of Online Video, Guests, marketing, Video

Video & Your Smart Business Marketing Plan

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Welcome WVFF Guest Blogger
Larry Kless

New Year 2010 Signpost2009 proved the power of video and social media can change the world.

We experience the Presidential Inauguration with millions of friends on Facebook. We read breaking news stories from citizen journalists on Twitter. We saw live as-it-happens video on YouTube hours before the stories reached our televisions and the standard reports by traditional news agencies were read.

More than any other year 2009 saw the rise of video as one of the most effective communication mediums in world history.

Virtually, every aspect of video is now included in business. From concept, scripting, storyboards, production, editing, encoding, storing, managing, distributing, syndicating, tracking, analyzing, etc… Content producers, media companies, small and medium-sized business all have the same opportunities to build their business and become online video publishers like any major corporation.

2009 also saw a shift in how we do business, from the personal to the virtual, in boardrooms, in our living rooms and especially,  from our mobile devices; which will soon do everything and anything we can imagine.

The stresses of the 2008 economy saw businesses cut their travel budgets, so it was no surprise that after more than 20 years videoconferencing found its resurgence as, “the next big thing” and video became the vehicle for our conversation.

TelePresence became a household word. Powered by Cisco TelePresence Solutions nonstop marketing efforts, IP video chat, WebConferencing, collaboration and live video streaming moved to the forefront as many businesses and media companies looked for ways to connect people and their team members to broaden consumer markets and publishing.

In 2010 I predict the most important area for video marketing and publishing will be the value video brings to the rate of return, ROI. Analytics will be big! It is how we measure and track performance, but it’s not going to be just about numbers, it’s going to be about engagement and reach.

Since “views” is what ultimately drives revenue we will see the emergence and demand for a standardization metric in both the industry and in business. We will also see an increase in social media metrics focused on search, discovery and optimization.

It is no longer enough for companies to deploy video solutions, business will need to engage in the communities where their audiences are through a variety of social networks. Conversation tools like Facebook, Twitter, YouTube will help marketers extend their reach and promote their brands.

Video is now part of the strategy within the ecosystem of marketing, and not just part of online marketing, but it must be part of everyone’s overall business plan.

Finally, in 2010 we will see more focus on high quality content, storytelling and a Smart Video Business Model (SVBM) will emerge to help foster that growth.

Read Larry’s WebBlog
Website: Online Video Publishing
Larry’s Vator News Channel
On Twitter @ LinkedIn

advertising, book, Making Videos, marketing, Nalts, Viral Video, YouTube

VidCon: Community & Online-Video Industry Morphs in July 2010 Event

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This video shows Hank Green (with his lesser known 3rd Green brother) announcing VidCon, taking place July 9-11, 2010 in Los Angeles, California. Here’s the official VidCon website.

youtube gathering july 2010 la vidcon

For those of you familiar with the Vlogbrothers (John and Hank Green), I don’t need to tell you what an enormous connection they have with the vibrant and growing community of online-video. They’re funny, smart, and selfless; this week they’ll be orchestrating another “Project for Awesome,” where they encourage fellow video creators to make a video about a charity… to “reduce world suck.”

So it wasn’t surprising that they’ve attracted the “Who’s Who” of online video… literally the most-viewed and most-subscribed video creators of YouTube and beyond. Also- if you know Hank and John, you’ll know that the admission price is to cover costs, and proceeds are for charity. These guys aren’t interested in making money, but these events cost a lot to do well. So I’ve got little sympathy for those few dozen people who feel a price tag is “anti-community, man”- sing that tune to your waitress at IHOP, kids.

For you online-video industry people who are less familiar with the community side, I have one piece of advice. Attend. If I could only attend one conference this year, it would be this one.

There will be a series of professional tracks covering advertising, marketing and production. But of course you can see the “brains” of online video at any conference. This one you’ll see the brain and the heart. And you really don’t know online-video until you’ve seen the heart… watched the most-viewed amateurs interacting with the fans… seen the groundswell of enthusiasm about a medium that’s changing people’s lives… see the friendships among the talented people (and me).

The informal YouTube gatherings — like 7/7/7 — have brought hundreds and even thousands together in various cities, but this one’s actually organized and planned. So it’s likely to be a huge event. Book your hotel early, friends.

If you’re interested in speaking slots, panels or sponsorships (imagine how many videos your logo can show up on, and how many millions of times it will be seen), let Hank know or shoot me a note (I’m volunteering to help on the professional side). Much of that will be formalized by the end of January. In the mean time, follow VidCon on Twitter.

advertising, book

Drink Your Fat, Kiddies

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Below is a somewhat terrifying video of a man drinking fat (source: Man Drinks Fat). It’s a product of NYC Health Department’s “Drinking Fat” campaign.

I spoke recently at a Google HealthThink event, and happened to immediately follow a presentation by the NYC Health Department’s Dr. Richard Daines (who presumably is behind this video). I had discovered his “soda versus milk” video, and decided to use that as a transition.

Daines started with some interesting stats, and used self-deprecating humor to drive home his point (eat and drink less sugar). Unfortunately, his presentation eventually spiraled into a sermon, and most of us felt condemned.

I think the crowd found some momentary relief from the awkward tension, when I opened by inviting them to help themselves to the unlimited supply of softdrinks and candy that Google was providing. I’m not sure I saw Daines laughing.

Nonetheless, this POV (not viral yet, per my previous post) drives home the message quite well. It’s just revolting enough to catch the attention of its target audience, even if it grosses out some parents in the process.

advertising, Blogs on Video, book, Guests, Video, YouTube

The Destruction of Television

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WVFF Guest Blogger
Hank Green

There seem to be two camps on this debate. One half says that the internet is going to kill television, the other says that the internet is going to make television much better and even more profitable. It seems that we’ve learned nothing from centuries of media outlets becoming less relevant.

Radio didn’t kill the stage, television didn’t kill radio, and the internet didn’t kill newspapers. Old media doesn’t die, it just become less relevant. I learned that from Jon Webber, owner of NewWest.net and one of my favorite professors, before I even knew what YouTube was.

It’s amazing how well the TV industry has ignored the lessons of music and newspapers. The simple fact is, everyone now has access to the equipment and distribution channels that were so unattainable just five years ago.

What’s really going to hurt television is the creation of a long-tail in video content. People will be able to watch whatever they want whenever they want and just as newspapers found out, people will produce that long-tail content without training, without limits, and without compensation. The crazy thing is, people will watch.

The result, more videos will be watched than ever before, but less money will be made than ever before. People will tolerate fewer advertisements, content creators will build huge empires in the minds of their audiences while working within revenue streams that wouldn’t pay the catering budget of a TV show.

Television revenues are going to shrink massively, however, they will remain much larger than anything the internet has to offer. Yet, in the minds of consumers, the war will appear to been won by the internet and television will have been destroyed. We will re-define our relationships with video content, yes, but, television won’t disappear, it will just become less relevant.

w00t!

Find more of Hank’s wisdom on the web @ hankgreen.com

advertising, book

Tiger Wood’s Sponsors Scramble to Reposition Campaigns

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Most Americans watch with intrigue about Tiger Woods and his sexual scandals (see this guy’s video claiming Tiger took him to Medieval Times, played with his golf balls and used his wood on him, or join the ratings of his women at Bleacher Reports). But me marketers are more interested in how Tiger Woods sponsors will handle their public affiliations with the philandering golfer.

Tiger is now, of course, the poster child for professional success at all costs. That fits quite well into business-consultant leader Accenture’s core positioning. But how will other brands adapt campaigns?

tiger woods women

Gatorade’s axed the Tiger “Focus” drink “before” the scandal (opting instead for a Lindsay Lohan “Purge” product line), other sponsors have pulled Tiger ads and remained silent about future plans.

Fortunately, thanks to WillVideoforFood, some of the planet’s most well-known and trusted brands need not suffer the humiliation of dropping Tiger when he’s down, or face the shame of affiliating with him during his, um, “discretions.”

For no cost, I’ve provided prominent Tiger Woods sponsors with some campaign slogans and adaptions that leverage this media sensation… turning lemons into lemon-ball vodka shots.

Tiger Woods hole

  • AT&T: “Better US Coverage Than Verizon or Tiger Woods’ Penis.”
  • Nike: “Just Do Her. And Her.”
  • Accenture: “We Know What it Takes to Pork a Tiger” (see existing ad, soon to replaced with footage of Tiger stumbling out of hotel rooms wearing only socks).
  • American Express: “Do you know me in the Biblical sense? Don’t tell my wife.” Also consider “Don’t Leave Home Without It, dark glasses, and a prepaid mobile phone.” Tiger may simply point to his crotch to punch the word “it.”
  • Gillete: “The Best a Man Can Get” campaign can pretty much stick with its campaign, and Tiger’s “the only thing that matters is today” line. He’ll be saying that a lot to his wife and family in coming months.

There are certainly well-meaning public relations and advertising professionals convening at this moment to determine how they’ll avoid getting mauled by Tiger’s scandal. And they’re reading consumer-generated media to get sentiment ratings and determine how this disaster is already effecting them.

Give those folks a break and toss them some ideas, huh?

advertising, book, Future of Online Video, Guests, Making Videos

FEAR!

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Welcome WVFF Guest Blogger
David Meerman Scott, author, speaker, guru

Every day, I run across FEAR of marketing on the Web. We’ve got to work together to help people overcome this fear in 2010.

  • Fear comes from bosses who insist on calculating the ROI of the marketing based on sales leads and press clippings.
  • Fear comes from offline advertising and PR practitioners cautiously making the transition to Web platforms to generate attention.
  • Fear comes from those who insist on copying the competition.
  • Fear comes from people who think “online video is just for kids.”

What’s behind the fear? Let’s take a closer look and then debunk a few myths:

FEAR OF PEOPLE SAYING BAD THINGS ABOUT US
Many company executives and public relations people trace their worries about “new marketing” to their belief that “people will say bad things about our company” via social media.

This fear leads them to ignore blogs and online forums and to prohibit employees from participating in social media. In every discussion that I’ve had with employees who freely participate in social media, I’ve confirmed that this fear is significantly overblown. Let me repeat – everyone who has experience tells me this fear is overblown.

Sure, an occasional person might vent frustrations online, and now and then a dissatisfied customer might complain (unless you’re in the airline industry and then it might be more than a few).

But the benefit of this kind of communication is that you can monitor in real-time what’s being said and then respond appropriately. Employees, customers and other stakeholders are talking about your organization offline anyway, so unless you are participating online, you’ll never know what’s being said at all.

The beauty of the Web is that you benefit from instant access to conversations you could never participate in before. And frequently you can turn around impressions by commenting on a “negative” post.

FEAR THAT WE WILL LOOK SILLY
When you wrote a first blog post, started shooting videos for YouTube, or begin to tweet it felt like you’re just a big dork, right? I certainly did. But like anything, experience brings mastery. Tell those who are fearful to just get going!

My daughter is learning how to drive. Yes, she gets honked at and may even get “the finger” as she gingerly tries to park in a crowded lot. But she’ll figure it out. Learning to drive takes time, but it is worth it because it beats the hell out of biking or walking in a Massachusetts winter.

FEAR THAT IT DOES NOT WORK IN OUR INDUSTRY
One of the most frequent manifestations of fear is that web marketing does not work “in our industry.” The proof people provide is that nobody else is doing it. I’ve heard “The new rules do not work for mutual fund managers or lawyers or dentists or politicians or Singapore based software companies or Canadian blood donation centers or Florida based real estate agents or churches or rock bands….” I’ve heard them all. I see the excuses of “this doesn’t apply to my market” and “people in my market do not use social media” literally every day.

Duh. Someone has to be a pioneer.

So my style and strategy in my books and speeches is to show examples from many different organizations. I also show examples from non-profits, the military, government agencies, doctors, rock bands, plus big companies, small companies, B2C, B2B and much more.

I am firmly convinced (and my audiences agree) that you can learn more from what a broad range of people are doing than from what other people just like you are doing. Let’s help people get over their fear by insisting that they not insist on copying the competitors. Instead, tell them to learn from a rock band or hospital.

Better yet, tell people who are fearful to learn from Nalts. He’s the master.

The long-anticipated second edition of David Meerman Scott’s book The New Rules of Marketing and PR releases in late December 2009. The first edition, a Business Week bestseller, is published in 24 languages.
Follow David’s Blog

advertising, Blogs on Video, book, Making Videos, marketing, Nalts, Online Video, Video Advertising, Video Business

Best Resources for Online Video ‘n Marketing, Farty

9 Comments

Online-Video RSS

What’s on your RSS or what sites do you visit related to online-video and marketing? Please comment below, especially in the likely event I missed something. I’ll update this, and you and I can find this post again by searching the word “FARTY,” which unlikely appears elsewhere here. I could be wrong.

Yes it’s time again for a round-up of some must-read blogs & peeps related to online video, marketing social media, and the shizzle.

Here’s the problem about finding good websites and blogs about online video. If you add “online video” to a search query, you’ll get a lot of videos about marketing. And the social-media space is just too damned cluttered. Any idiot can write an article about that. I like the writers that touch on the intersection of online-video and marketing, and don’t stray too far into the self-indulgent world of traditional entertainment and advertising, the desperate starving filmmakers overproducing episodic content, and boring crap about technology providers.

Most of these peeps are smarter than me, but I actually spend most of my day marketing and making videos… not a journalist or professional speaker (although I’m doing more and more… someone help me figure out how to charge to speak please). So although my content will give you great secret or bore you to death, at least it’s mostly practical.

If I missed you, take a cue from Uncle Nalts. Shamelessly self promote below. Unless your blog is about cats.

advertising, book, Future of Online Video, Google, Making Money, Making Videos, marketing, Nalts, Online Video, Profit, research, Video Advertising, Video Business, YouTube

Seven Secrets YouTube Doesn’t Want You to Know!

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Man that headline will sell. Truth is, I am very careful about NOT revealing confidential information on this blog that I learn from Google employees, as a YouTube partner, or through my conversations with industry colleagues or creators.

But most of this is public now, or based on educated assumptions topped with a saucy tabloid-like flare. On a similar note, YouTube’s Business Blog published a refreshingly transparent POV about some YouTube myths recently. Did you know that 70% of Ad Age top 100 marketers ran YouTube campaigns in 2008?

Here are the secrets the YouTube PR folks won’t reveal:

I've got a secret
"I've got a secret" -Cindy Brady

1) YouTube is Monetizing Fewer than 9 Percent of Its Videos. But Who Cares? Kudos to Jason Kincaid for doing fancy math to figure out what percent of videos YouTube is monetizing (meaning the site is making money instead of paying to stream and bleeding money). The answer was 8.5%, which is close to AdAge’s 8.7% estimate (CNN Money claims 13%). Of course, monetizing could mean shitty lil’ penny banner buys, decent InVideo sponsorships, homepage takeovers, or premium rev-share deals. It’s long been rumored to be 3-5 percent monetization, but let’s get real. Google could turn that number to 100% by simply running Adsense indescriminately on each page. So I’d be less concerned about the percent than the profitability.

Thanks to YouTube my videos are seen 200-250,000 times a day (yey, Uncle Google). That wouldn’t happen any other way, and I’m only hoping the biz-dev folks enhance the average profit per-monetized video before it bothers chasing the impossible-to-monetize-well long tail. This is happening as we speak with new revenue boosting options.

If I got a penny per view, I’d earn $730,000.00 this year. I’m not, mkay?

2) Algorithms Squashed the Editors. Almost nothing you see on YouTube is by accident… or an editor anymore. While YouTube editors once possessed more power than most network executives (creating instant celebrities by homepage feature pixie dust), the model is now driven almost exclusively by relevancy and economics. Recently, YouTube announced content creators and small advertisers can get their videos promoted for a fee… and not just against search results. Editors continue to serve some role on the “spotlight” pages and community relations, but are not the Titans they were in 2006 and 2007. That said, we still love them deeply because our love was unrequited. Especially when they put us on Partner showcase pages.

Google-Data Robots Eat YouTube Editors' Brains for Fuel
Google-Data Robots Eat YouTube Editors' Brains for Fuel

3) YouTube Still Plays Favorite, and especially for “TV Shows.” Lately, YouTube has worked hard to pimp its “shows,” a collection of retro TV that lost its charm faster than Bazooka loses its taste. Ba-boom. There also are some YouTube partners that live on the home-page (CommunityChannel), the recommendation section for new registrants to YouTube, or are “micro-featured” everywhere. We don’t know whether the editors are doing this, or the algorithms are saying: “these guys are good YouTube-addiction starter drugs.” But we do know that if a human does have any input to this “favoritism,” the person is probably really smart, attractive and has good breath. Man I’d like to meet ’em!

4) It’s All About Your Relatives: Not Keywords and Viral. Think viral-views is the engine behind YouTube? Wrong. It’s about having a steady daily audience (like many, but not all, of the top 100 most-subscribed) and having your videos appear as a related video to popular videos… in other words, via ad, editor or algorythm, getting next to watched videos. Just like being next to a pretty girl makes you look cooler.

A visit to YouTube is often a chain reaction. You start to watch one video, and several related videos draw you deeper. Metacafe was once the master of this, and now YouTube is drawing upon its data-oriented parent, Google, to facilitate what I call the “video roach motel” model. This will get better with time, as we move from “title, tag, description” as being the view driver, to that mystical thing called “relevancy.”

What’s relevancy? I’ll give you two examples: if someone searching Google returns instantly after clicking on a result, that page is penalized on the rankings. Presumably it wasn’t what the searcher wanted. On YouTube, if a video is poorly rated and/or is viewed for a percentage that’s far below average for its total duration, it will eventually be penalized. Example two: on Amazon, there’s a high correlation between Wayne Dyer and Dr. Seuss book purchases, then those two books are related. The machine is getting smarter based on universal behaviors and your own preferences. Soon enough, my audience will be a smaller percent of YouTube but hopefully larger and more appropriate. That’s because we’ll see more of “people who like Shaycarl may also like Nalts.” (And although I may not be as funny or cute, I’ll look thinner to those viewers).

Neither of these models requires indexing the content, mind you. So in theory a video could be relevant to you without the algorithm even knowing what’s being spoken (remember years ago we thought all video would be transcribed to facilitate SEO… and that we’d be driving space cars by now?).

5) YouTube May Not be Hurting, But it’s Hungry. Google was the first to abandon banners and move entirely to a bid model. But YouTube, in a Yahoo-like move, has blitzed in past few months with homepage takeovers. Folks, there’s no reason for ads to represent 50% of the site’s homepage (above the fold) unless you’re trying to show fast revenue. It’s not Googlesque (even if CNN Money maintains that Google hearts YouTube). Of course the rice-sized brained media buyers are using this precious space to simply drive awareness instead of engagement: most of the homepage takeovers are for films, and there’s usually nothing more than a trailer to compel interaction.

CNN Money suggests all is zen-like between YouTube and Google. Hey, even if YouTube captured as much as 1 billion in annual revenue, that’s 1/30th of what Google does. Meh. So if YouTube bleeds a few hundred million to run itself ($83-$350 million in infrastructure/hosting alone, and — who knows — $250 million to maybe $500 million in a year), who cares as long as it has strategic long-term value?  Online video is white hot, and it’s just a matter of expediting the future and reducing the blood loss. Of course, all of this is speculation, and Google/YouTube aint talking.

YouTube ad

6) Why YouTube Can’t Discuss Real Profit/Loss. No, YouTube doesn’t want you knowing about its economics, but I have 3 words for the curious: stop asking, idiot. YouTube can’t over or understate financials, yet journalists whine about the company’s decision to not publish profitability (or even costs or revenue specifics). Imagine the channel conflicts disclosure would create! If it’s horrible, YouTube has dimished street credibility with media outlets, downstream distribution partners, and advertisers… not to mention shareholders. If it’s schweet, then it attracts copyright attorneys like watermelon at a picnic. But should YouTube reveal case study ROIs (with permission of advertisers) to legitimize the medium to marketers? Uh- yeah. Glad you asked. I give YouTube a D minus on this.

7) Steven Chen’s Latest Contribution. YouTube won’t likely be issuing press releases about Steven Chen, who has continued to vanish from the public light. But thankfully, Chen disintermediated his employer and shared his latest project — which includes a golf swing. Hey, he’s got billions in the bank. What would you do? Probably build a coffee bar. Or buy the car you’ve saved up for since 2005. For nostalgia, check out Chen when Google bought in.

steven chen

Shit. This post took me hours of time I could have otherwise spent trying to, um, make money. At least there will be a few comments from the back row. Right?

advertising, book

YouTube “Call-to-Action” Overlays: Untold Truth & Money-Making Tips

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YouTube is debuting “call to action” overlays, which have some interesting applications for marketers and advertisers. This post dispels some confusion about this offering, and gives you tips to make stinkin’ amount of money on this functionality until everyone else catches up.

For some reason advertisers and marketers thought this functionality was already possible, but there were only two ways to create hyperlink overlays until now: a) a video owner could use an “annotation” to drive traffic to another YouTube page, or b) an advertiser could by Google Adsense cost-per-click or CPM ads (which appeared in the bottom 5th of video).

This new offering is really a “value-ad” to stimulate video owners to buy more of the undersold “promoted” videos, whereby the video owner pays YouTube a bid price (ranging from a penny to fifty cents) per click. Each time someone searches “prank,” I bid 1-5 cents per click. Like Google, it’s a low click-thru rate but I don’t pay unless they click. Chances are as a partner I’ll never make back the penny, but I’m experimenting to see how brands could benefit from this.

Again- here’s the criteria for this new offering, which is not being communicated well.

  • First, you can’t use it if you’re a video owner or partner who isn’t buying cost-per-click ads to promote your own videos.
  • Second, you can’t use this if you don’t own the video.
  • You need to both OWN the video and be running pay-per-click ads to promote it.

Example- if you search “Nalts” on YouTube and you see my Garbage Can prank video, then you should see the text overlay ad (although it’s not working now, presumably because it’s being run through editorial approval). I’m not clear as to whether this prevents me from monitizing the video via InVideo ads or adsense ads.

TechCrunch reports this feature helped a charity raise $10K in one day. This could improve video’s ability to drive traffic, a primary objective for many advertisers. For instance, I spoke with a client in the travel industry yesterday that was not impressed with “impressions” and awareness, but on direct response. Could his digital advertising be linked to selling rooms?

Unfortunately, most campaigns have a very small click-thru rate (in my experience 2-3 percent is healthy). I worked on a recent promotion for a major network’s web property, and saw a healthy 6% rate (the percent of viewers that visited the destination site). But imagine if it was easier to find the link (instead of buried in the description tab, where the viewer must select “more” before even seeing the hyperlink.

So What, Nalts… How Do I make Stinking Amount of Money Using This?

monopoly_man

Want to make some quick cash while the rest of the industry gets hip to this? This should work well temporarily because YouTube is the 2nd most-popular search engine after Google, and most advertisers aren’t exploiting it yet. You’re at a distinct advantage if you buy keywords on YouTube and have a video thumbnail (instead of a text ad) as a resulting ad, and you’re probably not facing the bid competition you might on Google for the same terms. So go forth and make money using these tips, and thank Uncle Nalts later.

  1. Create a destination website packed with some relevant information related to a sought-after area (like electronics, lawsuits, mortgages), and soak it with Google Adsense advertisements that yield high pay-per-clicks.
  2. Create videos about the topic, and encourage people to visit your website for important information. Keep the video SUPER short or you’ve lost ’em.
  3. Post your videos, then bid on YouTube keywords  via YouTube ads so people find your videos. Tag them well so you hopefully get some organic views too.
  4. Be sure your bid price is not more than you’ll make back (cap it at 1-5 cents and 5 bucks per day initially). If you spend 50 cents to get them on your video, and only migrate 10 percent, then you’ll need to make $5 per visitor to break even. But if you bid a nickel and migrate 20 percent, you have a decent margin as long as people click some of your Adsense ads.
  5. Now your “target” will hopefully convert well in three phases:
  • from a YouTube search to your video (at a low price)
  • from your video to your own publisher website (hopefully 10-20% of them)
  • from your website to the websites paying high cost-per-clicks to publishers (at a higher income to you than you paid YouTube).

Oh by the way- this isn’t sustainable. Eventually people will bid up the keyword prices on YouTube making the delta less significant. And in general it’s hard to justify paying for ads when your model is ad dependent.

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