With the popularity of YouTube, more and more creators are flocking to the platform in the hope of earning revenue by posting short videos. Short videos have become a new favorite among creators due to their short content, fast distribution and wide audience. However, in order to earn substantial revenue from short videos, it is crucial to understand its revenue calculation method. In this article, we will introduce the calculation method of YouTube short video revenue in detail to help creators better optimize their content and increase their revenue.
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I. The main sources of YouTube short video revenue
Before exploring specific revenue calculations, it is first necessary to understand the main sources of revenue for YouTube short videos. The main ones include the following:
- advertising revenue: This is the primary source of revenue for YouTube creators. When a video complies with YouTube's advertising policy and monetization is turned on, YouTube places ads in the video and the creator gets a cut of the ad revenue.
- Subscription: Some creators offer exclusive content through YouTube's membership program, where users pay a subscription fee and the creator earns revenue.
- Sponsorships and Brand Partnerships: The creator enters into a partnership with a brand and gets paid for promoting the brand's products or services in the video.
- Super Messages and Super Stickers: During live broadcasts or premieres, viewers can support creators by purchasing Super Messages or Super Stickers, from which creators get a share of the proceeds.
- YouTube Shorts Fund: A fund launched by YouTube dedicated to rewarding creators of short videos, giving out rewards based on the performance of the videos.
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II. Calculation of advertising revenue
Ad revenue is the most common source of income for short video creators and is determined by several factors:
- CPM (cost per thousand displays): This is what advertisers pay for every thousand ad displays. Different types of ads and different market environments can affect the CPM.
- viewings: The total number of views of a short video directly affects the number of ads displayed. The more views, the more opportunities for ads to be displayed and the higher the ad revenue.
- advertising viewership: Not every view shows an ad; ad viewership depends on YouTube's ad allocation strategy and viewer behavior. The higher the ad view rate, the higher the ad revenue.
- Revenue sharing between creators and YouTube: Typically, creators get a 551 TP3T cut of ad revenue and YouTube keeps 451 TP3T.
Illustrative calculations: Assuming that a creator's short video received 1,000,000 views, with an ad view rate of 501 TP3T and a CPM of 1 TP4T5, the ad revenue is calculated as follows:
Number of times ads are displayed = 1,000,000 x 50% = 500,000\text{Number of times ads are displayed} = 1,000,000 \times 50\% = 500,000 Number of times ads are displayed = 1,000,000 x 50% = 500,000 Total advertising revenue = 500,000 x ($5 / 1,000) = $2,500\text{Total Ad Revenue} = 500,000 \times (\$5 / 1,000) = \$2,500 Total Ad Revenue = 500,000 x ($5/1,000) = $2,500 Creator Revenue = $2,500 x 55% = $1,375\text{Creator Earnings} = \$2,500 \times 55\% = \$1,375 Creator Earnings = $2,500 x 55% = $1,375
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III. Calculation of revenue from member subscriptions
The YouTube membership program allows creators to offer exclusive content to paying members. A portion of the membership subscription fee will go to the creator.
Illustrative calculations: Assume a creator has 1,000 members, each member pays $4.99 per month, and YouTube takes 30% as a platform fee:
Total Subscription Revenue = 1,000 x $4.99 = $4,990\text{Total Subscription Revenue} = 1,000 \times \$4.99 = \$4,990 Total Subscription Revenue = 1,000 x $4.99 = $4,990 Creator Revenue = $4,990 x 70% = $3,493\text{Creator Earnings} = \$4,990 \times 70\% = \$3,493 Creator Earnings = $4,990 x 70% = $3,493
IV. Benefits of sponsorship and branding cooperation
Earnings from sponsorships and brand partnerships are usually based on an agreement between the creator and the brand. The level of revenue depends on the creator's reach, audience engagement and the brand's budget.
V. Benefits of super messages and super stickers
SuperMessages and SuperStickers are a way for viewers to support the creator by paying for messages or stickers during a live stream or premiere. The creator gets a share of 70% from this.
Illustrative calculations: Assume that viewers contributed $1,000 via SuperMessages and SuperStickers during a particular broadcast:
Creator Gain = $1,000 x 70% = $700\text{Creator Gain} = \$1,000 \times 70\% = \$700 Creator Gain = $1,000 x 70% = $700
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Six,YouTube Shorts Fund
The YouTube Shorts Fund is a fund dedicated to rewarding creators of short videos based on the performance of the video (e.g., number of views, interactions, etc.) YouTube will directly notify eligible creators and award the prize money.
VII. Strategies to improve short video revenue
- Increase the number of video views: Attract more viewers by producing high quality, interesting and engaging content.
- Optimize ad viewership: Choose the right type of advertisement and position to increase the chance of displaying the advertisement.
- Utilizing multiple revenue streams: In addition to advertising revenue, you can also increase your earnings through membership subscriptions and sponsorship partnerships.
- Participation in the YouTube Shorts Fund: Post short videos on a regular basis to try to get on the YouTube Shorts Fund's award list.
concluding remarks
Understanding the revenue calculation method of YouTube short videos is an important foundation for every creator to optimize their income and enhance their earnings. By reasonably utilizing various channels such as advertising revenue, member subscription, sponsorship cooperation and YouTube Shorts Fund, creators can get higher revenue on YouTube platform and realize the win-win situation of content creation and financial return. I hope this article can provide valuable reference and guidance for all creators.
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