What YouTube’s monetization policy means for advertisers and creators

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Billed as one of the most creator-friendly social media platforms, YouTube is raising a few eyebrows with its updated monetization policy that allows it to monetize all forms of content, even that which is not on its agenda. YouTube Partnership (YPP). , without sharing its money with creators who have a smaller audience. As of June 1, 2021, this will also impact the monetization of the creators of the PJP with viewers in the United States, as the income will be considered royalty for tax purposes. If they fail to share the tax information by May 31, Google may be required to subtract up to 24% of total income as tax, the company said.

Digital marketing experts believe creators will face a painful pinch of these monetization policies on their average incomes.

Do Your Thng Founder Ankit Agarwal said, “YouTube has made it clear that not only will it advertise as and when they want on any video, but it also acquires the right to charge. charges to other users for accessing any content. For the creators, it is love at first sight because they do not receive any compensation for the advertisements shown on their videos. That they can monetize them if they have 1k subscribers and 4000 hours of viewing time will only be cold comfort. Many small creators are intentionally not part of the YouTube Partner Program because they believe that placing ads can potentially deter viewers. Moreover, at this stage, their return is insignificant.

He adds, “It’s not just creators who will feel the pressure, nonprofit channels too. None of the benefits of advertisements placed on their content will benefit them. “

Sudish Balan, Commercial Director of Tonic Worldwide, explains, “The policy change will not only affect creators who are not part of the YouTube Partner program, but will also result in a dramatic drop in income for creators in the YPP program. Because YouTube will prefer to exhaust its ad inventories on non-partner videos and save on the commissions / royalties they have to pay. Not only will non-partner creators not get paid, but they will have no control over what type of ads will show on their content or how long the ads will last. Which could lead to higher bounce rates. ”

However, ClanConnect co-founder and COO Kunal Kishore believes it might be premature to announce that the creators are going to be lost because of these policies.

He quipped: “Without a doubt, YouTube is a friendly platform for creators and has always been focused on their growth. I don’t think they’ll change the whole ethos of their brand with this policy change. While at the moment it looks like the move is daunting for creators, we should wait and see how it all plays out to see the real impact. They might have something better in the store for the designers. ”

SoCheers co-founder and director Siddharth Devnani also shows a positive inclination for the movement. “For new or small designers, this is certainly far from ideal. This adds a layer of friction to build subscribers – as viewers may be less patient with less established channels. But YouTube provides them with an unrivaled viewer base. It has the most widely used search engine on the Internet after google.com. So, for new creators, it might be worth it. And with billions of ad revenue at stake, YouTube will surely find more ways to monetize it. “

Jackpot for advertisers

While creators have to deal with revenue issues, advertisers will be the biggest winners with this new set of rules.

Devnani says the policy change will dramatically increase the collection of content available to advertise, allowing advertisers to better target and reach niche audiences with content that might not attract large numbers of subscribers.

Kishore says a similar sentiment: “Advertisers aim to reach every nook and cranny of the country right now with their advertisements. New age regional creators may not have a large subscriber base right now, and with these new policies in place, advertisers may choose to reach out to that niche and dedicated audience. They’re definitely going to be pickier and pickier with their content now. ”

For now, he has suggested creators step up their attempts to reach out to brands directly for partnerships, as ad volume won’t immediately rebound.

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