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Despite A Rise In Views, YouTubers Are Still Earning Less. Here’s Why?

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The current COVID-19 quarantine situation has significantly led to a rise in traffic for Youtube. However, it’s not translating into greater earnings for YouTubers.

According to The New York Times, YouTube traffic is up 15% but unfortunately, YouTube channels are earning less money than they used to despite the surge in viewership.

Viewership Goes Up, Advertising Rates Go Down

This can be attributed to the fact that advertising rates on YouTube have dropped by nearly 50% since the beginning of February.

“Everyone is pausing their campaigns on YouTube,” the report says. Roberto Blake, a YouTuber says they currently have it worse than others right now when it comes to advertising CPM (the amount of revenue earned per thousand views). People I know are going down from KES 800 to KES 550. I’m seeing people go down from KES 1200 to KES 400,” says Blake.

Why Are YouTubers Earnings Going Down?

Youtubers

We can assume that the economic uncertainty caused by the pandemic, coupled with a rapidly changing consumer landscape, are the reasons why companies are reeling in their ad spend.

First of all, let’s understand how YouTubers make money. One way they earn revenue is from people viewing ads on videos. Those views are only worth what an advertiser is willing to pay for them.

The cost of display advertising is determined by how many advertisers are “bidding” on the inventory. Due to the current situation, fewer advertisers are running campaigns and that means that those who do pay for ads will pay less due to reduced competition.

When the cost of ads goes down, revenue for the ad publisher (YouTube & its creators) also goes down. So, even if Youtubers are receiving more views on their videos, they will still earn less.

It’s Getting Bad

YouTube creators themselves have confirmed the reported drop in earnings. A YouTuber who goes by the name Bodil40, who has over 2 million subscribers. He notes that his CPM has dropped 30-50%.

If you do a search for “YouTube CPM” on Twitter you’ll quickly find dozens of video creators who are concerned about their YouTube earnings.

Content Creation Should Continue

At this point, YouTubers may be asking themselves why they should continue to invest their time and resources into making content for little return.

Well, people need entertainment. With people being stuck in isolation under stay-at-home orders, there is a greater need for new content now more than ever. Give back to your viewers by creating content that keeps them entertained, informed, or inspired. Maintain authenticity and keep the content flowing.

Do it for the people:)

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  1. When will fibre get to Lodwar?

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