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5 Factors That Affect Your YouTube Earnings Potential

YouTube is the second largest search engine after Google and it offers huge potential to generate revenue both for enterprises as well as individuals.

If you look at the statistics of YouTube for 2020 you will be surprised to find that YouTubers have earned a revenue of more than $ 242 million.

If you have a YouTube channel, then you must be aware of the various factors that can affect your revenue stream.

The revenue generation capability of your YouTube channel depends hugely upon the CPM (Cost per Mille).

CPM refers to the cost per thousand views, impressions, or clicks. An advertiser would pay per thousand views for an ad that is put in your YouTube content.

In this article, we will try to bring forth those factors that can affect your YouTube earning potential so that you can tweak your content and marketing strategy to increase your revenue.

Important factors that affect your YouTube channel’s earning

Let us find out the important factors which can affect the flow of revenue through your YouTube channel.

Listed location on your channel

The location listed on your YouTube channel plays a vital role in your money earning potential. Some countries are rich and have a bigger economy than others.

For example, if your YouTube channel is listed in the US and focuses on the US market, you will have a huge audience with high disposable income.

On the other hand, if your channel is listed in a third-world country with a smaller economy, you will have very few audiences to target who have high disposable income.

It has a higher impact on your YouTube CPM. Companies with premium products would like to advertise on those channels which attract larger audiences of high disposable income.

And they are willing to pay more to advertise on your channel (if your channel is listed in a high-income economy).

Now, if your channel is listed in a high-income economy but not getting enough views, then advertisers will ignore it. 

One of the fastest ways to grow your channel in a specific region is to buy country-targeted YouTube views.  

It is the same method adopted by various YouTubers to reach a wider audience and generate more revenue. You can also do the same and reach new heights on the platform.

The age profile of your audience

The age profile of your audience also plays an important role in the earning potential of your YouTube channel.

If we look at their age group, especially for the US market, then it is described as 13-17 years, 18-24 years, 25-34 years, 45-54 years, 55-64 years, 65+ years.

Among these age groups, the one between 45 and 54 is the most lucrative segment for any company because at this age the income level for most Americans’ income peaks.

As people of this age group can spend more, the advertisers like to target them to sell their products and services.

Therefore, if the average age of your audience is in this range, then you can expect greater ad revenue from your YouTube channel.

On the other hand, if you are a gaming channel, then your target audience would be under the age of 25, who have less disposable income, which means a smaller number of advertisers.

This shows why certain YouTube channels earn fabulous sums, whereas others are struggling to generate revenue.

Your niche industry

The niche industry that you are targeting also has a role to play in how much you earn from your YouTube channel.

Some of the top niches that attract a large number of advertisers include the following.

  • Health.
  • Investment.
  • E-commerce.
  • Real estate.
  • Auto reviews.
  • Insurance and others

If you look at these niches you will find that subjects like investment, insurance, real estate, health, and others do not attract the attention of most viewers.

Only those individuals whose age is 30+ and have adequate disposable income are interested in such topics as they are looking for a good, stable and secure lifestyle.

This shows how the niche of your YouTube channel can affect your CPM.

What types of ads are placed

in your content

Different kinds of ads can be put on a YouTube video that includes sponsored cards, display ads, non-skippable ads, overlay ads, and others.

If you analyze these ads, you will find that their CPM varies significantly.

You will find that a video ad has a higher CPM compared to a display advertisement because it is hard to ignore video ads compared to a small graphic that is scrolling at the bottom of the frame.

How universally your videos can be viewed

How universal are the contents that you put in your YouTube channels?

If there is a lot of violence and guns in your content, then you will have limited monetization because these subjects lower your CPM.

Most advertisers are looking for content that gives the highest possible CPM like PG-13 videos.

Conclusion

The points in this article will give you a deeper insight into those factors that can affect the earning potential of your YouTube channel.

The better you know about these factors and how you can leverage this information, the better you would be able to increase earnings through your YouTube channel.

The YouTube algorithm and dynamics of the YouTube channel keep changing over time. Therefore, you must keep a sharp eye for any new factors that can affect the earning potential of your YouTube channel.

Featured Image Source: Pixabay

The post 5 Factors That Affect Your YouTube Earnings Potential first appeared on Blogging, Digital Marketing And Technology.

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5 Factors That Affect Your YouTube Earnings Potential

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