YouTube Ad Monetization vs Pay Per View – Which is Better For Selling Videos Online?

YouTube ad monetization is based on views. But which views? 

Views on videos or views on ad-plays?

There is a huge difference between video views and ad views.

Video views – Total no. of views your video gets

Ad views – Total no. of views the ads on your video get

YouTube doesn’t pay based on video views, instead, the popular video streaming platform pays creators for ad views. 

If your recent music video/stand-up comedy clip has a million views on YouTube but only 1000 ad views, then you will be earning revenue on the 1000 ad views, not on the million video views.

Being a content creator, be it of any niche – entertainment, health, fitness, education, finance, or spirituality, you can upload and monetize videos on YouTube but do not expect to earn a consistent revenue stream. Want to know why???

In this blog, we will neatly explain YouTube Ad monetization, its working policy, drawbacks, and how much you can earn from your videos online. 

Also, we will provide an in-depth comparison of YouTube ad monetization vs Pay Per View video streaming.

Stay tuned till the end, and get to know which is the right channel to sell videos online and earn a good profit.

Monetizing Videos With YouTube Ads

Video monetization is a big topic for creators big and small. Luckily, YouTube has allowed many video creators, like Mr. Beast, the popular American YouTuber, to monetize videos and earn millions successfully. 

But there is a catch!!! Not every creator is allowed to monetize videos on YouTube. There is a certain eligibility criteria to earn money from YouTube.

The standard way to monetize videos on YouTube is by joining the YouTube Partner Program (YPP). 

YPP allows creators to earn ad revenue by displaying advertisements on their videos.

To join YPP, there are a few minimum eligibility requirements. Please read thoroughly.

How to become eligible for the YouTube Partner Program?

• Adhere to YouTube Ad Monetization Policies
• Reside in a country where YPP is applicable
• Strictly follow YouTube’s Community Guidelines
• Minimum of 4000 public watch hours in the last 12 months
• Minimum of 1000 channel subscribers
• Minimum 10 million public shorts views in the last 90 days (For YouTube Shorts monetization)
• And an active Google Adsense account is a must

Once you meet the above criteria, your YouTube channel will be verified under YPP and you will be provided access to YouTube Ad monetization tools. You get granular, per-video control and can turn on ads on selected videos that you think are a good match for advertisers.

How Much Does YouTube Pay Per View?

YouTube ad algorithms are way too complicated. It’s very difficult to estimate the exact ad revenue one would make from the ad views. But we can always calculate an average earning by using the Google Adsense calculator.

YouTube Ad Monetization (Ad-Views)

FYI, a content creator on YouTube earns around $.01 to .03 per view, which would be roughly $10-30 per 1000 views. This calculation is based on “ad-view” metrics. To get a clear picture of earnings through ad views, have a look at the below table.

YouTube Ad Monetization (Video Views)

When considering ad revenue through video views, the estimated earnings per every 1000 views would be close to $5-7. Here’s what the table looks like for earnings based on video views.

The above tabular data are correct for the US region only, the earning range may vary for other locations.

Not limited to region/geography, there are a lot of other factors that affect YouTube ad monetization.

Factors Affecting YouTube Ad Monetization

• Content Category/Niche—YouTube’s ad earnings vary by industry/category/content topic. If you’re making videos for educational purposes to train/skill your viewers, you may get paid more than the travel/fashion niche videos. Also, market competition around your video category can affect ad revenues.
  
  

• Ad Formats and placements – The type of ads you enable on your videos also affects the money you make per video. Choose wisely from different ad formats – skippable ads, non-skippable ads, bumper ads, overlay ads, and back-to-back ads.

• Watch-through rate – How many % of viewers watch ads on your videos and for what time they watch also determines YouTube ad monetization. If a viewer watches less than 30 secs of the ad, then it won’t be counted as an ad view.

Drawbacks of Monetizing Videos with YouTube Ads

Let’s get this very straight. YouTube is not the right platform for content creators to earn money. It’s a great place to market your exclusively crafted videos through teasers, trailers, BTS, or short clips, but publishing the entire piece of original content on YouTube is never going to be worthwhile. Why?? Please check the below points.

• High Commission On Ad Revenues – YouTube charges a hefty commission of 45% on earnings made through ad revenues. This means almost half of the money that you will be making by selling your premium videos, would be taken up by YouTube.

• No Control Over Ad Content – YouTube decides which kind of ad videos/banners will get integrated into your videos. There are chances the ad content may not align with your brand goals & communications and might end up affecting your subscriber’s streaming experience.

• No Guarantee On Monthly Ad Revenue – YouTube never shares insights on advertisers’ invested money. Neither does it ensure you a fixed rate per ad-view. The earnings from YouTube ads are always inconsistent and subject to variables.

• YouTube Ad Monetization Algorithm change – YouTube often updates its monetization policies and ad revenue algorithms. Such changes greatly affect ad streaming on your videos and hence ad revenue fluctuates unpredictably.

With YouTube Ad Monetization, there is no guarantee that you’ll be paid a certain amount every month. First of all, the strict video monetization criteria – creators must meet the eligibility for the YouTube Partner Program.

Even when the criteria are met, the ad rates offered by YouTube are dependent on various parameters. Thus, there is no certainty about the revenue stream of YouTube ads.

So, if not YouTube ad monetization, then what’s the best alternative to make money with videos online? Let’s compare YouTube Ad Monetization vs Pay Per View Monetization.

Monetizing Videos With Pay Per View (PPV) Streaming Model

PPV is currently a hot trend in the video streaming business. In recent years, reputed streaming services like Amazon Prime Video, Disney + Hotstar, and Simply South, have adopted the PPV monetization model to capitalize on exclusive video categories.

For those unversed with Pay Per View, here’s a short introduction.

What is Pay Per View or TVOD in OTT Video Streaming?

Pay Per View is an online video monetization model wherein the viewers get to pay only for the videos that they wish to stream. It is also termed TVoD or transactional Video-on-Demand as it enables viewers to buy/rent individual videos and stream them whenever they want.

By monetizing with PPV streaming, creators can either allow viewers to rent the exclusive video content for a pre-defined time (say 7 days ) or purchase the video with lifetime access.

The working principle of Pay Per View streaming is pretty simple. When end-users pay for PPV video, they are provided with a unique key access to the video. Using this key or specific URL, users get privileged access to the premium content they had paid for.

Why Sell Videos Online With Pay Per View Streaming?

1. The PPV charges for a single video may remain low (as say $10), but every time a new user streams it, you’ll earn recurring money.

2. PPV streaming model refines your subscribers’ base by keeping the non-subscribers away.
    
3. PPV connects you with viewers who are interested in streaming exclusive video content such as short films, Travelogues, Cooking Recipes, Music videos, and more.

4. PPV enables you to set your own content prices and gives you profitable video revenue.

5. Pay Per View or TVoD is always an appealing option for a content owner as it allows one to earn assured OTT revenue even with a small or very niche audience.

Benefits of Monetizing Videos with PPV Streaming

1. Make Money From Your Exclusive Videos – PPV monetization is an excellent way to engage your fans/followers, who have a keen interest in your brand. PPV allows viewers to watch your exclusive videos online that are not otherwise available to stream for free.

2. Viewers Make Conscious Streaming Choices – With PPV streaming, viewers feel confident in paying up for their choice as they know what they want to stream.

3. Unravel Viewer’s Streaming Behavior – In Pay Per View video streaming, creators get to understand the psychology of viewers and their favorite content choices, simply by analyzing the type of video content they choose to pay for.

4. Real-Time Value Analysis of Videos – PPV streaming model gives a clear idea about the value of videos, monetized with Pay Per View. Being a creator/content owner, you can identify which PPV videos are performing – bringing you good profit and which are not.

5. Receive Payments Instantly – Want instant returns on your newly released videos? PPV streaming is the most convenient way to receive payments instantly, as you directly earn money from viewers.

6. Low bandwidth costs – With PPV, viewers only stream videos they paid for. They don’t get to access the other available content. This prevents your video streaming platform’s unwanted bandwidth costs.

7. Your Pricing – Your Revenue – Creators set the prices of their videos and can change the content pricing anytime they want. Also, with the PPV streaming model, there is no need to pay any commission to any distributor/advertiser. It’s completely your money.

We have a dedicated blog on the benefits of PPV video monetization. Maximize your PPV revenue with our proven tips & tricks.

Detailed Comparison of YouTube Ad Monetization Vs Pay Per View Streaming

YouTube ad revenue is paid per view, while Pay Per View (PPV) revenue is earned when viewers pay to access content. 

On average, YouTube income per 1000 ad views is around $10–$30 ($0.01 to $0.03 per ad view).

On the other hand, PPV video revenue for 1000 views ($1 charge per viewer), would be $1000 straight.

Now compare for yourself, if you are uploading your videos on YouTube, you will be earning $10 – 30, whereas the same video with PPV streaming can make you $1000.

Which Is The Right Video Monetization Model To Sell Premium Videos?

The Pay Per View streaming revenue (worldwide) is expected to grow with a CAGR of 4.80%, leading to a huge market size of $13.82 billion by 2029 from its current count of $10.93bn in 2024. 

With this kind of exponential growth rate, it is for sure Pay Per View or TVoD will be the most sought-after video monetization model that would generate the most revenue for content owners.

The main USP of Pay Per View streaming model is it allows end-users/viewers to pay only for the content they want to stream, no monthly recurring charges – just a one-time fee. 

Many times, viewers don’t want to pay a subscription fee monthly or yearly, even if they are not interested in exploring the whole video range; they simply want to stream an exclusive video of their choice and pay for that only. That’s it, no strings attached.

In such scenarios, you being a content creator/artist/producer, can sell premium videos online using PPV and earn 10X More revenue than YouTube Ads. 

So, if it’s premium content, then the best way of video monetization is PPV streaming, as you can charge as per your preference and make potential earnings.

Sell Videos Online on Muvi TV and Earn Profitable PPV Revenue

Muvi TV is a First-of-its-kind video streaming service wherein viewers can sign-in for free, buy favorite videos/audio for a certain amount, and stream content right away. For creators, it’s a unique low-cost video monetization platform with Pay Per View Monetization engine. 

With Muvi TV, You can set independent pricing for single videos and avail video monetization at scale. The best thing is, you don’t have to pay hefty upfront fees to get started with PPV streaming. 

The fully-equipped video/audio streaming service charges only $9 per month as a subscription fee from creators. 

Unlike YouTube, Muvi TV takes a minimal commission per viewer i.e. only 9% (lowest in the OTT market). That means, almost 90% of earnings that come from PPV streaming will go straight to your bank.

Let’s check a real-time comparison of revenue earned using YouTube vs Muvi TV.

Hope you got a clear picture of YouTube Ad Monetization vs Muvi TV’s Pay Per View Streaming.

So, why wait then? Let’s start earning money from premium content. Simply upload your videos on Muvi TV using easy-to-use CMS and earn profitable revenue on every single stream.