Youtube traps for content owners. How to monetize video content reliably without significant risks?Jul 1, 2020
Despite a gigantic audience, high positions in search engines and access for everyone Youtube is an extremely risky place for your video content and revenue source. Why do the most successful streaming companies choose a multiplatform strategy to distribute their videos? There are 6 common problems youtubers usually are faced with.
6 Youtube traps for content owners
- Google AdSense shares only 55% of the revenue. Once you accumulate $100 in earnings, Google will issue a payment to your bank account. You can choose to be paid via direct deposit (not available in all countries) or check—direct deposit is the fastest method and has no fee. If you are located in the United States and earn more than $600 per year, Google will issue a 1099 form. Either way, you are required to pay income tax on your earnings.
- Air.io shares only 25-30%
- number of commercial impressions (they are counted if the viewer watches until the end or at least 30 seconds)
- ad formats and their prices
- the geographic location of viewers
- scope, impression number, holds
- quality of content and video topics
1. Content thefts
A serious problem for content owners is the huge risk of being stolen. There is an enormous amount of complaints about the copyright policy of Youtube. For instance, you can see below the posts from twitter about online theft. The case illustrates that someone can just notify Youtube that he or she is the true owner of YOURS videos and nobody will be punished. It will be easy to define the faker if you compare the mail addresses of both profiles, but the support team of Youtube can be solving the issue for several months. Many authors have a significant part of the income on Youtube and will stop earning money in such a silly way.
One major difference between Youtube and your own application is your data will be protected and untouchable in the application.
2. Termination of the channel
The most dangerous for the authors is to be suddenly deleted and lose all subscribers and the progress you have made since the registration. Those, who have youtube as an only one profit channel fully depend on its policy and rules. The next examples show that this problem can touch any channel and crash your plans. Source On the other hand, having apps on various platforms provide you with more audience at the same time with the stable situation of your business.
On the other hand, having apps on various platforms provide you with more audience at the same time with the stable situation of your business.
3. Decrease in the quality
Due to the introduction of quarantine measures, the increase of traffic in the USA and Europe turned out to be so significant that Youtube and Netflix decided to degrade the video quality in order to prevent network congestion. So, over the next month, YouTube will show users videos in standard resolution instead of HD.
Unlike Youtube, the owner of the app has full control over the video quality.
4. Stop working on non-certified devices
However, some viewers on YouTube channels will run the risk of being left without access to video services on Smart TV soon. In fact, even before the outbreak of the coronavirus epidemic, changes occurred in Google’s user policy, due to which the work of the most popular video service on non-certified devices will be terminated.
Google ceases to support the old YouTube interface, which was designed specifically for use on Smart TV devices. And the application will no longer work on non-certified devices soon. YouTube has already disappeared on smart TVs and consoles, which were released before 2013 not long before. Google is committed to standardizing YouTube, making it faster and safer. Own application differs from Youtube because the author decides himself on what devices your app will work.
5. Recommendation limits
Famous Youtube authors complained about problems with monetization. Bloggers such as Philip DeFranco and Jesse Ridgway said that ads suddenly disappeared from their videos. So they stopped receiving incomes from their main activities. Sometimes even subscribers disappeared and views began to drop altogether. And no one understood what was going on.
One of the most world-popular bloggers Felix Chelberg also felt all the negativities. If his videos collected about 30% of the impressions from the recommendations before, for now, it has dropped to less than 1%. However, the developers assured everyone that no changes in the algorithms had occurred. It could only mean that Youtube tightened its censorship rules. E.g the scandal with the blogger PewDiePie who was blamed as a bigot and kike-hater
These events led to the “adpocalypse” (adpocalypse) - an aggressive disabling of monetization even in the most seemingly harmless videos on video hosting. Naturally, it caused a lot of negativity among video authors but Youtube has not changed its position.
Sandole application doesn’t have any limits unlike Youtube in the impressions count and ads control. TV advertisements are less competitive and more profitable than any other.
“Connected TV premium advertising space requires participants to pay a higher CPM or a specific price floor. These prices can be 3 to 5 times higher than standard video placement. Connected TV can reach $65+, while video turns out CPM’s of $10 to $15. CTV isn’t the least expensive targeting tactic-per-unit, but it produces much higher outcomes in terms of video completion rates. Higher VCR means more top-quality views with better impressions.” Source
6. Complicated and unpredictable income. High fee from partners
To start collecting the money from your Youtube channel you must meet the specific conditions.
Minimum eligibility requirements to join. Source
Follow all the YouTube monetization policies.
Live in a country or region where the YouTube Partner Program is available.
Have more than 4,000 valid public watch hours in the last 12 months.
Have more than 1,000 subscribers.
Have a linked AdSense account.
Ways to make money in the YouTube Partner Program
You may be able to make money on YouTube through the following features:
→ Advertising revenue
→ Channel memberships: Your members make recurring monthly payments in exchange for special perks that you offer.
→ Merchandise shelf: Your fans can browse and buy official branded merchandise that’s showcased on your watch pages.
→ Super Chat & Super Stickers: Your fans pay to get their messages highlighted in chat streams.
→ YouTube Premium Revenue: Get part of a YouTube Premium subscriber’s subscription fee when they watch your content.
Youtube provides several ways to earn money, nevertheless, you lose great sums of money that are charged with fees.
In addition, you cannot predict your profit due to many factors.
What determines the potential earnings of a blogger?
In contrast to Youtube, your own application has a clear and transparent business model with direct money withdrawal. Usually, the application integrates with payment platforms to manage revenue, prevent fraud, and expand internationally. For instance, stripe.com is the perfect solution with 2.9% + 30¢ fee per successful card charge. You will manage to withdraw money in a couple of days and spend them on your needs.
How to earn money with video streaming app?
- Advertising revenue (for mob - the average revenue per impression in the US is $0.02. The average revenue per completion is $0.16 for interstitials and $2.50 for offerwall)
- Pay per view or Subscriptions model (multiply the subscription cost by the number of your subscribers WITH NO FEE 100% profit)
- Brand deals and sponsorships (you can use your app as a distribution channel for other content owners)
- Affiliate programs (you can place product links)
- Sell your merchandise (add features to the accounts to order your goods)
The reliable solution is multi-platform strategy
As you can see, to monetize content only on YouTube is risky enough. Sandole application is more reliable and has a broader feature set. It allows content owners to earn money directly through the subscription model without paying a commission to third parties and higher ad revenue from each platform. It is equally important that the application will be absolutely designed for your brand and you can add customized features that you do not find on YouTube.
You can grow detailed analytics according to criteria that are important to you. Also, you can implement chats and personal accounts for users, add products’ selection from the video directly with the links of the stores etc.
Besides, you will no longer pay subcontractors for the placement of your video and for the ability to stay in top-rating charts.As soon as you are ready to take a step further you will be able to expand and integrate your platform.
Design and Test Lab uses reliable code and proven OTT modules, that allow us to avoid errors even at the development stage. We try to automate the tests as much as possible. It reduces the time for supporting the application and increases the reliability of the product. It makes all users feel satisfied and avoid claims considered video quality, which is extremely essential for video streaming applications.
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