YouTube Monetization: How to Make Money on YouTube in 2025?

YouTube Monetization: How to Make Money on YouTube in 2025?

by | Apr 29, 2021 | Monetization

Would you like to make a passive income from your YouTube channel? The YouTube monetization program can be a good option, but it is not the only one. In this CodeFuel guide: What is YouTube Monetization and How Does it Work?- 10 Ways to Monetize your YouTube Channel we will walk you through the basics of YouTube monetization and the steps you should take to profit from your channel.

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This post is brought to you as a courtesy from our team. At CodeFuel we focus on helping businesses grow by monetizing digital properties like websites, apps, extensions, and more.

Learn more here. To continue learning about YouTube monetization, read on.

What is monetization?

The term monetization is the process of earning income from an asset or business. For example, from selling ad space on a website or online content. It is the process of transforming a non-revenue-generating asset into cash. In digital marketing, monetization looks into new sources of income, such as inserting ads inside of social media videos or before and after video content. 

YouTube Monetization Statistics

There are  2 billion users on YouTube, watching 1 billion hours of videos every day, (YouTube, 2019).

Many YouTube creators are trying to make money from their YouTube channels. And with 90% of users discovering new brands of products on YouTube, making money from your account is almost a no-brainer.

Many companies are taking advantage of the large audience, which shows in the high numbers of global advertising revenues. According to Statista: YouTube advertising revenues amounted to $19.77 billion in 2020, an increase from $15.5 billion in 2019.

Worldwide advertising revenue of YouTube

What does monetize mean on Youtube: YouTube Monetization Definition

The monetization of your YouTube channel refers to the capability to generate income from your video content. “Monetize” means to earn a profit from your YouTube clips. 

YouTube has its own monetization program for creators, which is called the YouTube Partner program.

Who Can Join YouTube Partner Program?

Not everybody can monetize their YouTube video content. To monetize your YouTube account, you need to be a verified YouTube partner. 

To be accepted into the program, you need:

  • a minimum of 1000 subscribers to your channel.
  • In addition, your videos should’ve been watched for 4000 hours over the past 12 months.

How Does YouTube Monetization Work?

For your channel to be able to monetize your content, first you need to join the YouTube partner program.  

How to Join the Youtube Partner Program

The partner program is the most common way people can earn money from their YouTube channel. To apply, you need to meet some requirements. 

What do you need to join? 

  • Follow the YouTube channel monetization policies described below. 
  • Live in a region where the YPP is available
  • Have no Community guidelines violations on your channel 
  • Turn 2-step verification for your Google Account
  • Have an active AdSense account linked to your channel. 

To apply: 

  • Once you sign in to your YouTube account, click your profile picture and YouTube Studio in the top right corner. 
  • You will see a left-side menu. Click Earn, then Start. 
  • Review and accept base terms.
  • Click Start  to link your AdSense account or set up a new one.

YouTube Partner Program & Requirements

The above guidelines are the baseline, but you still need to meet eligibility criteria. If you still cannot become eligible, you can go to the Earn area of YouTube Studio and click on Notify me when I’m eligible. YouTube will send you an email once you’ve met the eligibility criteria. 

Your channel can become eligible for YPP with Shorts or long-form videos:

Option 1: 1,000 subscribers + 4,000 vali public watch hours in the last 12 months 

Option 2: 1,000 subscribers + 10M valid public Short views in the last 90 days

YouTube Partner Program Eligibility

How to become part of the YouTube Partner Program? 

There are several steps you must comply with to become a partner:

1. Before you start:

  • You need over 1,000 subscribers
  • 4,000 valid public watch hours over the last 12 months
  • YouTube Partner Program must be available in your country
  • Have a linked AdSense Account.

2. Meet With Google Guidelines

You need to comply with YouTube monetization policies:

  • YouTube will review your channel to check the theme, most viewed videos, newest videos, watch time, video metadata. 
  • Enable 2 step verification for your account
  • Follow the YouTube community guidelines: YouTube rules for content are very comprehensive and the platform constantly checks channels for compliance with the rules. I strongly suggest you learn and verify your content ticks all the requirements before applying for a YPP account. This includes the use of copyrighted material.
  • Follow AdSense program policies

3. Verify Your YouTube Account with Those 3 Simple Steps

If you want to upload longer videos, go live or apply to YPP, you need to verify your account. It only takes 3 steps:

  1. Go to your YouTube Channel and click on Manage Videos

Verify Your YouTube Account 1

2. On the left side menu, select Settings /Channel/ Feature eligibility

Verify Your YouTube Account 2

3. Select Verify Phone Number.  Then Select: Text me the verification code.Verify Your YouTube Account 3.jpg

  • You will get a code to verify your phone number.Verify Your YouTube Account 4.jpg
  • Click on the code and that’s it.Verify Your YouTube Account 5.jpg

Source

4. Sign to YPP terms

If you meet the requirements, you can sign up for the program. Follow these steps:

  • Sign in to your YouTube account
  • Click on your profile / YouTube Studio
  • In the left menu, select Monetization

YPP terms

  • If you meet the requirements => click Start on the Review Partner Program terms” card.  
  • If you don’t meet the requirements yet => click on Notify me when I’m eligible.

Connect Your Adsense Account

You will need to connect an AdSense Account to get paid. If you have one, use the one that is already approved. If you don’t, create one.

What happens if I’m rejected from YPP?

You can re-apply 30 days after the rejection.

Contact us to learn more

What will YouTube check when reviewing your account? 

Besides the abovementioned requirements, YouTube will verify the following in your channel before approving your account.

  • The main theme
  • Which videos are the most viewed
  • The newest videos
  • Which videos have the biggest proportion of watch time
  • Video metadata such as titles, thumbnails, and descriptions.

What mistakes to avoid on YouTube?

Novice content creators can sometimes make copyrighting and monetization mistakes that cost them their membership in the program. You must comply with  YouTube’s copyright rules at all times and with all your videos. 

You can only upload videos that you made or are authorized to use. This includes music or audio tracks and videos created by others.

What happens if you violate the rules?

  • You’ll get suspended from the YouTube Partner Program
  • Your account can be terminated
  • Ads will no longer appear on your videos.

You’ll be informed beforehand if you violate any of the policies.

Youtube Monetization Requirements, Rules & Policies

To be accepted in the YouTube Partner program, there are five different types of policies you need to comply with: 

1. YouTube Community Guidelines: These are the things prohibited in YouTube

  • Spam, impersonation, and deceptive practices
  • Sensitive content, adult content, content that violates the child safety policy., self-harm, vulgar language.
  • Violent or dangerous content
  • Regulated goods
  • Misinformation

2.  AdSense program policies: Things not allowed in to monetize properties through AdSense

  • Repetitive content
  • Reused content.

3. Comply with the quality principles for kids and family content: What does YouTube consider low-quality for a channel made for kids?

  • Encouraging negative behaviors or attitudes
  • Heavy commercial or promotion
  • Deceptively educational
  • Incomprehensible
  • Misleading

Besides, YouTube expects creators to be accountable and responsible with the content, and to have integrity and not misrepresent themselves.

Can you really make money on YouTube?

The short answer is yes, you can. Youtube can now monetize smaller creators, so it is a good opportunity for anyone with relevant video content to monetize it through YouTube. There are several ways you can make an income on YouTube. Is it easy? No, but it is doable.

You can earn money from Watch Page ads, and Shorts Feed ads. You can charge for channel memberships. If using AdSense, on average YouTubers make between $3 and $5 per 1000 video views.

For channels with a lot of traffic, it is not uncommon to reach more than $200,000 a month from AdSense.

Let’s check some statistics:

Video display ads stats (updated to 2021)

  • According to Forbes, video advertising will continue to grow in the next few years, expecting to reach as high as $12.66 billion by 2024, from $10.18 billion in 2019.
  • Mobile will account for 73% of video ad spending.
  • Video ads were the top way consumers discovered a brand.
  • 96% of marketers have spent budget in ads on video.

How Much Money Can You Make On Youtube?

The truth is, it depends. According to Mint, the average YouTuber makes between $0.01 and $0.03 per ad view. That means about $18 per 1000 ad views. This may reach about $5 per 1,000 video views for top YouTubers. A YouTube video with a million views can make about $5000.

This depends on several factors:

  • How many views your video receives
  • How many clicks your ads receive
  • The length of the video

5 Ways to Earn Revenue

The most popular way to make money in YouTube is by monetizing the video views and by displaying ads before and after videos. Here are other ways you can make money from your YouTube content, here are:

How Does YouTube Monetization Work?

YouTube offers different monetization options for users that are part of the YouTube Partner Program. 

1. AdRevenue

The YouTube monetization program is very simple.

Companies in the Google Adsense Network create ads that are placed at any moment in the video. Each time a viewer watches the entire ad, you get paid. That’s it. 

The ads can be placed at the start of the video (pre-roll ads). When the video you uploaded is longer than 10 minutes, you can also enable ads during the video (mid-roll ads).

You get ad revenue from ads placed on your channel (display, overlay, and video ads)

Different types of ads – according to YouTube Creators Academy

AdRevenue

Who can apply?

YouTube partners that meet the advertiser-friendly content guidelines. The guidelines consider certain content in channels as not suitable for advertising. Some of the categories that are not appropriate for ads are drug-related, firearms, adult, hateful content, controversial issues, inappropriate language, and others. Google evaluates each case and takes context into account.

2. Channel memberships

You can offer membership to your subscribers in exchange for exclusive content, badges, or custom perks.Channel memberships

Who can apply?

To apply for the membership monetization option, you need to have more than 30.000 subscribers.

3. Merchandise shelf

You can sell official branded merchandise presented on your watch pages. This type of monetization option is good for YouTubers with great branding. Gamers, activists, and influencers use this monetization option.Merchandise 1

You can sell apparel, gear, backpacks, and other gear. The key? Being an established YouTuber with a strong brand can monetize the channel and increase engagement with a merch shelf.Merchandise 2

Source

Who can apply?

You need more than 10,000 subscribers to apply to this monetization option.

4. Super Chat – Super Stickers

Your channel fans can have their messages highlighted in your channel chat stream, so their messages can catch attention. This is useful for YouTubers that do LiveStreams with live chat enabled. YouTubers raising money for a cause, or a specific campaign, can also benefit from this. You can learn more about how to manage super chats in this video from YouTube.

Who can apply?

YPP from a country/region where SuperChat is available.

5. YouTube Premium Revenue

YouTube lets some creators get part of a YouTube Premium subscriber’s subscription fee when they watch content. This gives a reward to content creators that produce great content. When this content attracts premium users, you can get paid by YouTube.

Who can apply?

YPP creates exceptional content that attracts premium users.

Submit your inquiry

How You Can Make Money From YouTube in 2025 – The Top 8 Ways

Now that we reviewed the 5 types of monetization the YouTube partner program offers, we can explore other ways of making money from YouTube in 2025. Let’s start.

1. Find Sponsors

Who can benefit from this? Video creators

How difficult is it? Intermediate

Working with sponsorship deals can boost your earnings on YouTube.  Most brands can pay very well for quality video content that can help them reach their business objectives.  Getting a sponsorship requires a large subscriber base and influence. It is also important to know that some niches can have more product placements than others. Consumer products like beauty and makeup are two of the biggest categories.

What you will create is, however, sponsored content, so you need to disclose this on your YouTube channel. Review the Google ads policies before so you don’t risk problems with your account.

When working with sponsors:

  • Ask for 50% upfront to protect yourself
  • Focus on quality video content that helps the user
  • Create unpaid reviews first to attract sponsors.

2. Affiliate Program and Review Products

Who can benefit from this? Video creators

How difficult is it? Easy

Getting a sponsorship can be kind of somewhat difficult. Luckily, you can still work with companies and earn commissions by reviewing their products for your audience. The entry requisites are often low, and you can promote the company by sharing your affiliate link in your video description. When working with affiliate marketing keep in mind:

  • You need to be transparent and disclose your affiliate relationships.
  • Choose programs that offer recurring commission

3. Crowdfund with Patreon

Who can benefit from this? Video creators

How difficult is it? Intermediate

If you have a good base of loyal fans, you can ask them to crowdfund your channel and help fund your new videos. You can use a platform like Patreon to allow your customers to subscribe monthly. Here is a video by YouTube Video Creators that explains how to make the most of your crowdfund with Patreon:

When funding your channel with Patreon, remember:

  • Keep your content interesting
  • Make the funding options clear
  • Give perks and surprise your fan base once in a while.

4. Become an Influencer with Amazon

Who can benefit from this? Influencers with at least 200 followers.

How difficult is it? For experienced YouTubers

Many YouTubers are using the Amazon influencer program to maximize their YouTube presence and make money via Amazon recommendations. According to Amazon, it is designed for social media influencers with large followings and a high frequency of posts with shoppable content. Amazon looks at the YouTube content you post and its relevance for Amazon customers.

When you join the program, you can review and recommend Amazon products via an affiliate link. When a viewer clicks on the link and purchases on Amazon, you get a commission, typically 8 to 10%.

5. Make money as a Videogamer

Make money as a VideogamerWho can benefit from this? Serious gamers with great video skills

How difficult is it? Intermediate

YouTube can be a great option to make money if you are a serious gamer. Some of the top YouTube gamers, like PewDiePie, make millions of dollars playing games. With the global gaming industry expected to reach $180 billion in revenue in 2021, it is a great opportunity for gamers to make money connecting gaming companies and their audience.

To be effective, probably you should use a combination of methods. Ads, sponsors, and merchandising.

6. Gain with YouTube Red

YouTube Red

Who can benefit from this? Video creators with a demographic of 25+

How difficult is it? Intermediate

This new subscription service includes ad-free content and YouTube original content for $9.99 a month. Users can save videos offline and background play. How does this work for creators? You need to agree as a YouTube Partner to include your content in your subscription. Creators are paid a percentage of revenue based on several factors, such as watch time.

Is it worth it? As YouTuber TotalBiscuit said:

“ since Red started, a Red view is on average worth 20x that of a normal ad view. This calculation is based on taking the total revenue the channel has generated via Red and dividing it by the total number of Red views since Red was first launched, then multiplying that number by 1000 to find the effective CPM of Red”. 

7. Offer Video Editing Services

Video Editing

Who can benefit from this? Video creators with video editing skills

How difficult is it? Easy

YouTube creators rely on finely edited videos to attract and engage their audiences. However, not all of them have the necessary skills. If you have a talent for video editing, consider offering video editing services to other YouTubers. You can offer your services on your channel or job boards.

8. Sell Online Courses (And Other Informational Products…)

Online Courses

Another way to earn money on YouTube is to sell online courses and other digital informational products. If you have knowledge that adds value to your followers, you can put together all this info into a course or training.

The range of topics is varied, fitness, marketing, even professional courses. For example, take TheCodingTrain. This channel, with 1.23M subscribers, offers coding video tutorials. They also have subscription plans that start at $4.99.

How much do sponsors pay Youtubers?

How much you can get from a sponsor will largely depend on the size of your audience, the level of engagement, your niche, and what type of sponsorship we are talking about? To have a ballpark idea, YouTubers usually charge from $10 to $50 per 1000 views but popular creators can make much more.

Can you Win Advertisers?

You can always approach advertisers directly, asking them to advertise on your Channel. You best bet, however, and much simpler, is to join an ad network. It can be through YouTube monetization program or you can add other networks compatible with the YouTube program.

To win advertisers you should promote your YouTube channel so you can get the most traffic and engagement. Here are some tips:

  • Start with a catchy title
  • Optimize your videos for visibility and usability. Don’t forget automatic captions.
  • Get the most of your Thumbnails
  • Promote your YouTube videos in other social networks
  • Use the right keywords to target Google search results

When do you start getting paid on Youtube?

To get paid on YouTube, you have a minimum threshold of 1000 subscribers and 4000 watch hours.  Most YouTubers get paid by direct deposit, typically on the 21st of every month. Here are the steps to get paid:

  1. Some locations require you to submit your tax information to Google.
  2. Verify your identity and address.
  3. Select your preferred form of payment, which may include wire transfer, Electronic Funds Transfer, or Single Euro Payments area.
  4. If your current balance meets the minimum payment threshold from your location, you’ll be paid on the 21 of the month.

How many subscribers do you need to make money on Youtube?

To join the YouTube partner program you need only 1000 subscribers, but to make a decent income, you need much more. For example, if one of your videos has 1 million views, you will make an average of $2000 to $15000, depending on your content niche, video length and location.

Top earning YouTube Stars

Position Name Earnings Views Subscribers
#1 Ryan Kaji Ryan Kaji $29.5 million 12.2 billion 41.7M
This 9-year-old conquered YouTube reviewing and opening toys.
#2 Mr. Beast Mr. Beast $24 million 3 billion 47.8M
Stunts and funny videos make Mr. Beast a YouTube sensation
#3 Dude Perfect Dude Perfect  $23 million 2.77 billion 57.5 million
5 friends play stunts with lightsabers, Nerf guns, and paintballs.
#4 Rhett and Link Rhett and Link $20 million 1.9 billion 41.8 million
Some of the longest YouTube stars, a nerdy talk show.
#5 Markiplier Markiplier $19 million 3.1 billion 28.5M
Super popular breakdowns of video games
#6 Nastya Nastya $18 million 39 billion 190.6 million
An adorable 7 years old and her father play with legos, do chores and explain viruses for kids.
#7 Preston Arsement Preston Arsement $14 million 3.3 billion 33.4 million
The king of Minecraft. Plays and explains Minecraft video games.
#8 Blippi Blippi $17 million 8.2 billion 27.4 million
Educational video content for kids
#9 David Dobrik David Dobrik $16 million 2.7 billion 18million
Funny and quirky videos and pranks
#10 Jeffreee Star Jeffreee Star $15 million 600 million 16.9 million
Beauty and makeup tutorials.

FAQs About Youtube Monetization

1. How much money can you make on YouTube with ads?

It depends on what pricing model you have. For example, if using Cost per Mille (CPM), a $3 CPM means that the advertiser pays $3 for every 1,000 impressions of the ad. Using Cost per Click (CPC) means that the advertiser will pay $2 per click your ad gets = $2000.

In YouTube, the default way for advertisers to set the amount to pay for video ads is Cost per View (CPV). What is a view? = when someone watches 30 seconds of the video ad ( or the entire ad if shorter). So, it will depend on the number of views your ads get to know how much money you will make.

2. How hard is it to make money on YouTube?

In fact, it is kind of difficult to make money on YouTube. The entry requirements for the YouTube partner program are high (1,000 subscribers and 4,000 watch hours in the last 12 months). Before you can start monetizing.

3. How to calculate how much 1000 views are worth?

From 100 viewers, only 15 on average will watch the entire length of a video ad, or 30 seconds. That means that per 1,000 views, only 150 people will watch the ad. Considering the average payment per view is $0.18, Google charges the advertiser $27, keeps $9 for them and the YouTube channel receives $18.

4. How many subscribers do I need to make money?

The minimum requirement to monetize in the YouTube partner program is 1,000. However, this won’t make a reasonable income for most YouTubers. Experts recommend having at least 20,000 subscribers to have decent earnings.

Wrap Up

This complete guide to YouTube monetization can get you started in your efforts to make money from your YouTube channel. Combining monetization strategies like display advertising, affiliate marketing, and the others we mentioned above can be the best plan of action to monetize your YouTube account. Learn how CodeFuel can give a complete monetization platform for your content, providing relevant search and shopping ads and news for your audience.

Ad Placement: How To Improve Results for Publishers

Ad Placement: How To Improve Results for Publishers

by | Apr 19, 2021 | Advertising, Monetization

If you are looking to improve your monetization results, it is time to look at ad placement. Here at CodeFuel, we prepared this guide to help your company understand what is ad placement, why it is important and how you can use it to get results for your website. Let’s start.

What Is Ad Placement? 

Ad Placement

In its simplest definition, ad placement means the group of ad units that specify the areas on the website where advertisers can place their ads. Ad placement criteria include the size, type, and location of the ads. For example, you can find ad placements noted like this: 

  • 728×90 (size in pixels) – above main content (location) 
  • 300×250 (size in pixels) – in-feed (location)

Each ad network has its own placement criteria. Some offer automatically created placements, others allow publishers to define their own placement criteria.

Types of Ads and Placements

Before going to explore the best ad placements, let’s review the basics of ad types. 

Ads come in several sizes and formats, from full page to small squares. Here are the most common:

Full page

The image below shows the layout chosen by a specific publisher. At the sides, you can see a full page space for placing ads. Full-page ads go above and below the fold, and there are among the most expensive ad types. 

Full page Ad placement

Image source

Half-page

Half-page Ad

Image source

Half-page ads are usually expensive due to the large space they take. They are used by publications to show sponsors. See this example on the Forbes website:

Forbes half-page Ad placement

Credit: Forbes.com

Here, the large ad pops when you start consuming the content relevant to the ad. Sometimes large ads can be effective on social media platforms, like this on YouTube.  

Youtube half-page ads

Image source

Banner ads

These are the ads you can see usually displayed on web pages. They often appear in the side, top, or bottom sections of websites. Publishers broker their ad space with ad networks or you can buy the ad space as you’ll do in a newspaper. 

They can be horizontal:

Horizontal Banner Ad

Or vertical, that is also called a skyscraper:

Vertical Banner Ads

Large square

These are usually found at the sides of SERP or website pages: 

Large square banner Ads

Image Source

Small Square

These small 200×200 pixels can help your audience remember a product related to previous searches or relevant to the content: 

Small sqaure ads

They are often found at the sides or also below the fold.

Ad Layout and Placement

Well, now that we explained ad types, it is time we talk about ad layout or ad placement. 

There are two key terms you need to know when considering where to place your ads: above the fold and below the fold. 

Ad layout and ad placement

Image source

Above the Fold (AF)

This is the part of the webpage that is first displayed to the viewer, without the need to scroll down. Since this part of the page is what the user sees right away, is considered one of the most expensive ad spaces.

Above the fold Ad placement example

  • Another example of above the fold placement:

Above the fold ad placement

Below the fold (BF)

Placing ads below the fold may seem unproductive, but in reality, it can be a cost-effective way to catch your user’s attention. As the viewer consumes the content, you can place the ads to complement it based on previous searches. Here’s an example: 

Below the fold Ad placement example

Video ads

Studies show that three quarters of consumers prefer video to static ads. Video advertising involves creating short videos promoting a product or service, played on a website, inside an application, or before, during or after a main video. Audiovisual pieces help tell a story better, improve conversions, and expand the reach. 

Most platforms play videos automatically when different percentages of the video are visible on screen. Amazon, for example, requires the video to be 50% visible on the screen before playing it. For Google platforms, the video ad is considered viewable when 50% of the ad is visible on the screen.

What makes a great video ad campaign?
It catches the viewer's attention in the first few seconds
It has an emotional component
It is tailored specifically for the audience
It has a clear call to action

Take, for example, this campaign encouraging people to visit Iceland: 

This campaign uses humor to advertise the natural beauty of Iceland. The results are clear, in its first week was viewed by more than 6 million people.

Social media ads

Advertising in social media has the advantage of being a direct way to reach the target audience. All social networks offer ad placements. Every social media platform has their own ad requirements and offers. 

Which one should you use? It depends on where does your target group hangs out. 

If your target is teenagers, TikTok is a sure bet. If 40 something, Facebook is where to find them. Let’s review a couple of examples: 

Facebook 

  • Three different types of campaigns: awareness, consideration or conversion.
  • The platform offers detailed targeting options
  • If placing video ads, Facebook allows to place video ads inside other videos
  • Facebook stories ads are a great format for limited time offers
  • Photo, video, carousel, stories, playable ad types
  • Since Facebook owns Instagram, the categories on it are similar.

Instagram 

  • Same ad categories as Facebook
  • Audience: Millennials and Generation Z
  • Custom targeting options
  • Photo, video, carousel, reel, stories and collection ad types.

Social media Ads Source: Instagram

What is Meta ad placement? 

Since Facebook is now Meta, their ad placement rules changed a bit. 

Here is an overview:

  • Ads can appear on the Facebook or Instagram feed, in Facebook marketplace or video feeds. The ads can also appear in the right column of desktop Facebook.
  • When someone taps on a business post header, the ad may appear on Facebook Business Explore.
  • Similarly, ads can be placed on Instagram Explore

Learn more on the Meta Business Help Center

Why Is Ad Placement Important?

When planning an online campaign, advertisers usually focus on how captivating and catchy the ad is, but where the ad will be displayed is as much important. After all, the ad can be great, but if it is not in the right place, chances are your audience won’t see it. Ad placement can effectively make or break a campaign. 

For publishers, designing your website to position your available ad space right, is even more important than choosing the size of the ads. Your site should offer spaces that are attractive to advertisers. If your ad space is hidden below the fold or tucked in a corner of the page, advertisers will not bid for your space. 

Therefore, above the fold, or positions that require minimal scrolling are the best.

Even more important, if viewers cannot easily access the ads on your site, this can bring down your Click-Through-Rate, affecting your monetization income.

What is Click-Through-Rate (CTR) and why it is critical for a publishing website? 

Click-Through-Rate calculates how many people actually click on your ad (clicks) per the number of people that view the ad (impressions).

This is the formula:

CTR = (Total clicks on Ad) / (Total Impressions) 

CTR is critical for publishers because a higher click on your ad means it is performing well and appealing to the advertiser’s audience. This can establish your position as a publisher and earn you better advertising bids. 

One of the ways you can increase the CTR for your ads is by using display ads on your page. Here are some reasons display ads can help increase CTR:

  • They include images and media- being more catchy and attractive for viewers.
  • They boost brand awareness– helping the audience to familiarize themselves with the advertiser’s brand.
  • They are less expensive than traditional advertising.

How Do You Find the Best Ad Placement on Your Website? 

Finding the best place for ads on your website requires to know well two key factors: your website and your audience. You need to find where your viewers like to hang out on your website, check the number of visitors and where they come from.

1. Prepare the tools

You will need some basic tools to work with:

Analytics or SEO tool: to monitor and analyze the traffic and audience. The analytics can tell you where your traffic is coming from, what devices your visitors use most, demographics, and similar data. 

Heatmap: heatmaps became really popular in recent years as a way to detect which parts of the website are the most attractive for viewers. Heatmaps collect the data from a webpage displaying which content of the web page is clicked more or gets more attention. Heatmaps can tell you on which areas of your page where viewers clicked the most, and how far the viewers scroll down. For example, see this heatmap of a Facebook page: 

Heatmap

Image source

Ad Manager: An ad management tool can help track how much exactly you are earning on your inventory. You can know how much each ad size or type makes.

2. Understand your audience

Once you have your tools ready, start by analyzing your audience. Use analytics to understand which country your traffic is coming from. So you can explore what ad placement is popular with advertisers in the most popular areas and focus your ad placement on that.[ADD GOOGLE ANALYTICS SCREENSHOT] This can also help you discard which pages are getting less traffic and improve them.

3. Check ad viewability

Viewability rate checks how many of the ads on your website get viewed. Placing ads on a website doesn’t mean your audience is actually going to see them. Publishers that have a high viewability score are considered to have high-value inventory. These high-level publishers usually get higher bids from advertisers because their ads will be seen. 

How do you measure ad viewability? Google considers as viewable a display ad that is on view for at least a second (even if they are 50% in view). The same about video ads, but it requires two seconds to be considered as viewable. These are the “Active Views” you see in the analytics. 

How do you improve ad viewability?

  • Test ad layouts, sizes, and placements.
  • Check your page load speed.
  • Optimize your site for mobile.
  • Test how the ads work on different channels.

    4. Evaluate past ads performance

    Start with what you have. Review the performance of the existing placements in terms of viewability, CTR, and revenue generation. Keep what is working and rework what is not. Use the findings as a base for further testing.

    5. Keep testing

    Try different layouts, above/below the fold. Experiment with A/B testing. Try different types of ads, display, rich media, video until you find which combination works better for the highest engagement according to the heatmap.

    6. Let Our Experts Help You With The Process

    All these trying and experimenting can be time-consuming and overwhelming when doing it yourself. Using the help of experts like CodeFuel can save you time and money by automatically choosing the best placement for display ads. 

    – Do you need any help? Our monetization experts are happy to help.

Contact us to learn more

How Do You Find the Best Ad Placement on Your App? 

One of the most popular app monetization strategies is In-App advertising. Unlike mobile web as these ads appear when a person is using the app. You can place display ads, banners, or video ads. 

Whatever type of ad you want to display, first you should optimize your app for ad placement. Think about monetization right from the start. When designing your app, think about what monetization model you will choose. If you’ll include in-app advertising, show it in the interface. There are two main criteria for in-app advertising optimization: 

Optimize for viewability: When choosing the ad format to display on your app, take into account the size of the ad vs the size of the screen. Small banner ads are likely to be too small for a user to view. 

When designing the UX of your app, think about where the ads have a greater chance to be viewed. 

Ad placement in App

Image Source

Optimizing for Revenue: That means, optimizing to get as many clicks as possible. 

Check your revenue model first, and classify the ads according to how the advertisers pay – per click, per conversion, or impression. Many advertisers pay per click. 

You can learn more about models in our guide to monetization metrics: What Is and How to Increase Your Page RPM?

How Advertisers Decide Where to Place Ads

Advertisers want to place ads on websites where they can get good returns for their money. Therefore, there are a few factors they consider when choosing where to place an ad:

The target market
The medium
The ROI
Companies want to advertise as close as possible to their target market. If your website delivers content to and has a lot of traffic from a company’s target audience, you’ll attract companies in the industry that want to advertise with you.
Again, it is all depending on the target user. If a company’s target users consume the products/services via mobile, then in-app advertising can be the solution. If through a website or via search, then search ads and display ads can be a way to attract these companies.
Advertising can be pretty costly so advertisers will look for the option that gives them the best ROI. Online advertising is more cost-effective than traditional advertising. Instead of investing in traditional advertising, a company can buy two banners for a year, on a website with good traffic and CTR and maximize its exposure and conversions.

How Does it Work When Working With an Ad Network? 

Companies that use Google AdSense and other ad networks like CodeFuel, don’t have to worry about choosing the ads manually. Monetization networks match advertisers with publishers, choosing the best websites for the companies and the most relevant ads for the websites

You can learn more about monetization with AdSense in our guide: How to Make Money with Google AdSense

How to Make the Most of Ad Placement on Your Website?

Consider your visitors’ user experience. Think about what the user is trying to do by visiting your site. Use the heatmaps to discover the customer journey, what does the user do when is visiting a particular page, where they focus their attention.

Once you define the area that catches most of the attention of visitors, think about how you can incorporate ads on this area without disrupting the user experience. The key here is to think like a user.

The ads should be easy to identify as such. Avoid misleading users with images and content that make it difficult to tell if it’s an ad or not. Label ads properly.

Keep your site looking clean and not ad-cluttered. Sometimes less is more with ads. Take into account balancing the size and quantity of the ads.

Look at your site for user experience. Check if your content provides value, if it is easy to find. Evaluate if your content is easy to differentiate from your ads or sponsored content.

What is An Example Of A Managed Placement?

A managed placement is a type of ad placement that can give advertisers a bit more control. The advertiser can define the placement criteria for their ads based on relevancy to their business. For instance, an advertiser may determine the ad can appear on “Display Network Only“ campaigns, “Search Network with Display Select” campaigns or “Video” campaigns.

An example of a poorly managed placement would involve inserting an ad for candies in a health blog talking about the dangers of sugar consumption.

Advertisers can ensure this won’t happen by optimizing placements not only by keywords, but also by using contextual ads. Contextual ads take into account the relevancy of the whole content where the ad is placed.

Tips for Ad Placements to Get Results

Multisize ads placements

Leverage multiples ad sizes to maximize returns on your pages. Different types of advertisers require different formats. Add video, rich media, display and in-feed ads so you can offer a mix that can work for several advertisers.

Sticky ads

These clever ads stay afloat when a user is viewing your webpage. They have the advantage of increasing ad viewability, resulting in a higher yield. However, not all networks allow sticky ads.

Ad refresh

These ads generate more revenue by refreshing ads on a page as long as the users are active, based on triggers. This increases the number of impressions and the chance of the viewer clicking through the ad.

Lazy loading

This feature enables ads to serve only when after a certain trigger, for example, when scrolling down. This makes the website easier to load, enhancing the user experience.

Let CodeFuel Experts Place The Ads For You

To get the most of your ad placement, you can follow the tips we presented in this article. However, this requires a bit of time and skill. Moreover, you have to analyze and research your user intent for every campaign. Here is where an intent-based ad solution like CodeFuel comes to help.  You can enrich your website with display ads, text ads, and news that are specifically relevant to your audience, and match its intent every time. Learn more about how high-intent ads result on high-intent visitors. Contact us.

Best Mobile App Monetization Strategies in 2022 [Unique Guide]

Best Mobile App Monetization Strategies in 2022 [Unique Guide]

by | Mar 25, 2021 | Monetization

Congrats, you developed a new app for your business. You can increase the ROI of your application by monetizing.  In this How to Monetize Mobile Apps – The Essential Guide, we, at CodeFuel, will walk you through all you need to know to monetize your apps successfully.

How do you monetize an app?

When you create an app, besides providing a solution, your main goal is to make money from it. So where do you start? There are several methods you can use to generate income from your application, also called app monetization. 

The obvious, but the least popular, is simply charging for your app. Charging users a fee to download your application may seem a good idea,  but you must consider that over 90% of applications in the Google Play Store and the Apple Store are free. 

Other methods include getting paid for displaying ads within the application, getting sponsorships to promote other companies’ products, and in-app purchases, which we’ll explain in the next sections.

What Is App Monetization?

It is the process of generating revenue from your app. When publishers offer free apps, they generate revenue in other ways.

Developers need to generate revenue from their apps, but it can be challenging to stay afloat without a solid amount of funding. With most apps free to install, developers need to adjust their revenue model to generate cash after the user downloads the app. While coming up with your business model, you need to ensure that your app generates revenue and provides a great user experience.

The Mobile Apps Market

From banking to gaming and dating, we use mobile apps for our everyday needs on our smartphones. In recent years, the mobile apps market has increased exponentially. Here are some statistics:

Monetize Your App With CodeFuel Today!

Number of mobile app downloads worldwide in 2022    255B

Global consumer spending on mobile apps in 2019     $167B

News apps had the largest retention rate at 11% in the 3rd quarter of 2022

Apps that are used only once in 2023    25%

Most popular U.S mobile app monetization strategy in 2023    Advertising

Total consumer spending on mobile apps in the 3rd quarter 2022    $167 billion

Number of apps available in the Google Play Store   3.55M

Number of apps available in the Apple App Store 2.09M

(source: Statista)

What can we learn from this?

While in recent years advertising was the most popular monetization strategy, by the end of 2019 and 2020, subscription was the most popular app monetization model. Subscription and pay monthly models work for giants like Netflix and Spotify. In the next section, we will look into these points as we explore the different app monetization strategies.

How Mobile App Advertising Works

One of the most popular ways to monetize a mobile application is by adding ads to it. Mobile app advertising allows you to make money from an app without actually charging for the app. When a user downloads your app, it will present your user with ads. Every time the ads get viewed or clicked via your app, you get paid a fee.

That works because people prefer not to pay for the apps they download. No matter how cheap the app is, if there is a free alternative that works, chances are the user will prefer it. That’s why, according to Statista, 96.7% of apps in the Google Play Store in January 2021 were free.

How do you get paid? There are two metrics you should know:

  • CPC: Cost per click. It means the amount the advertiser pays for each click on their ads. 
  • CPM: Cost per mille (thousand impressions). With this system, the advertisers set the price they will pay per 1000 ad impressions. As a developer or publisher, you’ll get paid every time a CPM ad is served to your app, and a user views it.

In the Google Play Store, CPM ads and CPC ads compete against each other. Google displays the ads that earn more revenue for you.

11 App Monetization Models and Strategies

When you plan to launch an app, monetization needs to be more than an afterthought. You should plan how your app will make money from the beginning of the project. There are many app monetization strategies applicable according to the type of app and audience. Some companies focus on one approach, while others use a combination of methods. Let’s explore:

1. Freemium – In-App Purchases

This strategy allows the user to download the app for free, but some premium features are behind a paywall. The users can try the app in the basic format, but if they want multiplayer, for example, they need to purchase the premium version. This approach can increase the audience reach and the number of downloads. Gamers can buy accessories for their characters, resources, or premium packages.

Freemium

2. In-App Advertising

In-app adverts are ads that appear when a person uses the app. It seems simple, but each application implements in-app advertising in a different way. Like with every monetization strategy, it has pros and cons. On the one hand, it is easy to implement. But on the other side, too many ads can annoy the users.

How does in-app advertising work? Unlike mobile web ads, in-app advertisements appear within a mobile app. They can be banners, video ads, or display ads. Because of the large amount of time people spend on their phones, using their preferred apps, in-app advertising has a higher response among users.

What are the most common Ad Formats? 

  • Banner Ads: they are usually so small on a mobile screen that they don’t provide a lot of value for the advertiser.

Banner Ads

  • Interstitial Ads: they are often served at the end of a section or flow on a game. Also, when the app is loading.
  • Native Ads: these types of ads integrate seamlessly into the app. Therefore, they have a higher engagement rate.
  • Affiliate Ads: these generate commission from other applications by advertising them through your app.

3. Upgrade to Remove Ads

In this model, ads are served unless the user pays the subscription to remove them. Spotify and YouTube music use this model.

Upgrade to remove ads

4. Smart Installers

Ensuring your users install the app seamlessly is part of providing a great user experience. You can also earn some revenue by using a smart installer and display third-party ads. Keep the offers related to what our app offers to give more value to users.

5. Bundle Deals

Combining several utilities or extensions can be a way to give more value to your audience and increase your application’s exposure. Bundles generally attract users to perceive that they are getting a good deal, and they are more likely to buy the app.

6. Search Monetization

A search monetization strategy, such as CodeFuel, earns money by adding search capabilities to your app. Every time a user performs a search from a third-party search box, your app pulls the results from other services, and your app gets paid.

7. Pay-to-Download Apps (or Paid Apps)

In this model, developers and software publishers simply charge users for downloading the product. Publishers usually combine this model with a freemium trial period or ads. This is one of the least popular strategies because users now don’t want to pay for an app when there are many free others.

8. Affiliate marketing

Can you apply affiliate marketing for a model application? Sure, this strategy allows the app to deliver value to the end-user with coupons, season deals of other brands. This commission-based sales method involves reselling services through affiliate programs in the app.

9. Merchandise

You can use your apps as a sales channel for your own goods or services. For example, a restaurant can use an app to sell delivery orders. An online store can use a mobile app to extend its reach, offer deals and special sales.

Merchandise

10. Transaction fees

Your app can be a platform to sell other people’s goods and services. Uber and Airbnb use this model where they get a commission fee for their services. 

11. Freemium/ Subscription service

Subscriptions are very popular as a way to generate app revenue. This model still lets the user download the app for free. They get access to all the features of the app for a trial period. Once this trial is over, they need to subscribe to keep using the app. This model is used by Netflix, Amazon Prime, almost all VPNs, and many other categories.

Freemium/ Subscription service

Best Practices to Improve App Monetization

When monetizing our app, there are some tips that can improve the strategies you implement:

  • Measure user engagement – user engagement rate is one of the best metrics you can use to track your app’s chances of getting monetized. If user engagement is high, it means users are satisfied. Also, the more time the user spends in the app, the more likely they will purchase.
  • Create loyalty with perks and discounts – reward loyal customers with discounts and perks. Some users may not feel comfortable with in-app purchases, but when offered a discount, may convert them.
  • Build a community –  some apps like mobile games thrive with communities. Players are more engaged and tend to make more in-app purchases when belonging to a community. But this practice doesn’t work only with gaming apps, cooking apps,

Ways to monetize an app

 1. Search Ads

Search ads can catch your audience’s attention about your app and remind existing users to use your application. These ads appear whenever a user searches similar keywords or categories. Moreover, you can create ads in the Google Ad Network that only appear to users who already have your app.

2. Social Media Ads

Promote your app on social media through ads that link directly from sponsored Facebook posts into your app. You can do this on Facebook and Twitter.

3. Push Notifications

Catch the attention of your audience when they are not using your app. For example, have your app send notifications based on location triggers. Or send your users regular reminders with valuable and relevant content from the app.

4. Recommendation engines

Use your app with a recommendation engine to suggest related products and services that the user may want. The recommendation engine algorithm can determine exactly which offers to promote, and you profit from the clicks and referrals.

5. Promote cross-platform

You can list your application not only in Google Play and Apple Store; there are other directories and app stores outside the US that can also offer revenue. Who knows? Your app might be a success in Europe.

How to measure app success

Companies generally measure an app’s success by tracking general performance indicators like the number of mobile downloads, the number of subscriptions, the retention rate, active users, and so on. Yet, the number of downloads is not the only metric to monitor your app’s success. After all, you need to know if your app is generating revenue.

App Monetization Metrics You Should Know

Average revenue per user (ARPU)
Customer acquisition cost (CAC)
Customer Lifetime Value (CLC)
Cost per Mille
Cost per Click
Cost per Action
Cost per View
Cost per Install
Average amount of money generated per person multiplied by the total customer base
The cost of acquiring a customer. Includes labor, advertising, and other costs.
Measures the net profit generated by every customer.
In this agreement, the publisher charges advertisers a flat rate for every 1000 views of an ad.
You get paid when a user clicks or taps on an ad.
Only pays the developers if the user makes a purchase.
This is related to video ads. It pays you every time a user watches most of a video in your app.
You get paid every time a user installs an app.

Stats and Figures About App Monetization

Here are the top 5 stats and figures you must know about app monetization in 2021.

1. Distribution of free and paid Android apps in the Google Play Store 2023

Distribution of free and paid android apps

2. Mobile app popular business models

Most popular app monetization

Source: Statista

3. The biggest app stores in the world:

Google Play
3.55 million apps
Apple App Store
2.09 million apps

Average in-app spend per user, per app

Google Play
$0.47
Apple App Store
$1

Average app price

Google Play
Between $1 and $2
Apple App Store
under $1

What can we learn from them?

Free downloading is still the preferred way for users to try an app. Most apps in the app stores are free, so developers need to find other monetization options. From them, subscription models are the most successful. Even when you charge for your app, keep it low priced, as most applications are under $5 in the app stores.

What Does the Future Hold for Monetizing and Promoting Apps?

There is no doubt that the global mobile market is growing. According to Allied Market Research, it is expected to grow over $400 billion by 2026. From the report, we can identify the three biggest trends for app monetization for 2021 and beyond:

  1. Targeted advertising: personalization is one of the biggest trends of the last years. Relevant ads provide the highest engagement. Therefore, most mobile apps use AI algorithms and services that help them show relevant advertising.
  2. Subscription is becoming the new normal. Netflix, Prime Video, and gaming apps are leading the trend with the subscription model and upgrades.
  3. Virtual merchandise: In-app purchases of upgrades and packages in mobile games.

How CodeFuel Helps Companies to Monetize their Mobile Apps

CodeFuel is a complete solution that lets you leverage search, ads, shopping, and news to monetize your mobile app. By adding user intent search, you can enhance mobile applications and increase revenue.

Ready to increase your app revenue? Learn more about how CodeFuel can help.

FAQs About App Monetization

How do you monetize your mobile app?

Use the strategies mentioned in this article, like in-app purchases, freemium/premium versions, in-app advertising, and more.

How do I monetize my app with ads?

You can use affiliate ads that allow your app to generate commission from other apps by advertising them in your app. You can also display relevant native ads by using search or shopping ads engines like CodeFuel.

How do I monetize apps without ads? 

You can offer premium paid features or a paid version of your app. Subscriptions and app referral programs also allow you to make money without apps,

New Year. New GEOs to grow your business

New Year. New GEOs to grow your business

by | Jan 13, 2021 | Monetization, Search

Happy New Year everyone! As we start 2021, here’s hoping for a happy, healthy, and prosperous year for all of us. We are delighted to start the year with good news and announce that we now have Bing search coverage in even more GEOs to help you serve searchers in more countries. 
Expanding your reach to additional countries is not the only benefit here, as we also now have coverage for mobile traffic in 34 countries. While in the past year due to Covid-19 we have seen an increase in desktop traffic, mobile traffic keeps growing as well.    
The list of countries now serviced across desktop and mobile are Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, Colombia, Denmark, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Norway, Peru, Philippines, Singapore, Spain, Sweden, Switzerland, Taiwan, Thailand, United Kingdom, United States, Venezuela, and Vietnam.  

As a reminder, search coverage is also available in Russia, Belarus, Moldova, Kazakhstan, Armenia, Azerbaijan, Tajikistan, and Uzbekistan, connecting searchers with search results powered by Yandex across mobile and desktop. 

Our team is happy to assist you in implementing search solutions and making the most out of the available new countries. Please feel free to reach out to your Account Manager for more details.

Not working with us yet? Now is definitely the time to join!  

Tips to monetize user searches and boost conversions

Tips to monetize user searches and boost conversions

by | Jun 18, 2020 | Monetization, Search, Shopping

Statistics show that 90% of Internet users which reported search activity visited an online retail site or store, of which 74% purchased a product online. E-commerce is booming, and despite the re-opening of malls and physical stores, consumers still prefer shopping online.

Your customers are visiting your site and you can optimize this opportunity to monetize their search. This article shows you how.

What Users Search: Do. Know. Go

When users search the Internet, they want to perform one of three major action categories: Do, Know and Go.

“Do” searches are also known as transactional queries. Users look to perform a specific action, such as purchasing a product or booking a service. These are the kind of queries that e-commerce sites look for.

“Know” searches are informational queries. Users want to learn about a specific subject. This kind of queries can sometimes lead to “do” queries. For example, if a user wants to select their next holiday destination, they may start with a generic query [summer holidays south Europe] and then filter until they select where they want to go. At this point they can make inquiries with buying intention.

“Go” queries occur when a user searches for a specific brand or product name. For example, if a customer is looking for Gucci, giving them Chanel will not do.

Customer Journey and Intent

The journey of a customer that is doing a transactional query goes through a series of stages, from knowing about the product until the actual purchase. Which each step, the chances of finalizing the purchase increase: 

  1. Awareness – when the customer discovers the product. At this stage the purchasing intent is weak.
  2. Interest – when the customer finds out relevant details about the product. This stage may prompt the decision for buying.
  3. Intent – this is when the customer decides to buy the product.
  4. Consideration – at this stage, the customer evaluates where to buy the product.
  5. Purchase – the moment of purchase.

While it seems straightforward, many customers fail to complete the journey, because they don’t buy the product or because they purchase from a competitor.

How to Identify Users Intent

Shopping platforms such as Google or Bing identify the users by analyzing the keywords used by them when searching. Although it is not an exact science, customer intent can be inferred and classified according to the keywords used.

The more specific the keywords used, the higher the buying intent. For example, a search term “skirts” has a very buying intent, although “navy pencil skirt ¾ length” is more specific and shows a higher intent to buy. The higher buying intent is in exact product names as search terms, for example, “Aroma Electronic Drum Set S-15”

To make the most of the visitors’ intent, apply search monetization strategies for your site.

Search Monetization Tips

There are a few tips you can implement to help monetize your site’s traffic. The first thing to do is ensure your site receives enough traffic. To achieve this, you can apply a couple of site optimization techniques: 

  1. Optimize your page loading time – slow sites not only have higher bounce rates but also figure lower in search engine rankings. You can optimize the loading time by reducing the file size of the images in your site.
  2. Ensure the design is responsive – mobile searches and purchases amount to nearly half of online purchases.
  3. Ensure your site provides true value – you do this by analyzing which keywords people search for and check that your content, including the ads, match those keywords.

Once you get a decent amount of traffic, you can start earning revenue. Common monetization strategies include:

  • Advertising
  • Sponsored posts
  • Affiliate marketing

The name of the game is to give value to your customers at every step of the customer journey. The easier the searcher can find what they are looking for, the earliest they will make a purchase decision. One way to give your visitors more value by serving shopping ads to searchers.

Boost Conversions by Using Shopping Ads

Product Ads are online ads that feature products matching a search query. They include the essential details of the product: image, name, price, name of the seller and copy.

Serving shopping ads to your customers presents a few advantages: 

  1. High-positioning: Product Shopping Ads are always at the top of search engine pages, responding to an organic search made by a potential buyer. Therefore, your product will draw attention of high intent buyers.
  2. Boost conversions: people are less likely to abandon a search if they click on an ad featuring an image, making product ads more effective than text ads.
  3. Save on bidding: when you use product ads you need not bid on different keywords, since products ads show for several related keywords.

You can display the product ads in a search results page, or on your website. One example of a versatile solution is Shopping Fuel. Based on Bing Ads, it allows you to serve products by different sellers and affiliates. This saves you on having to bid independently by keyword, and you can manage your shopping campaigns more effectively.

Conclusion

Attracting visitors and keeping their attention is not an easy feat. The average person will stay less than a few seconds on a website if they don’t find what they are looking for. When you are looking to boost conversions, there are a few tips you can implement: 

  1. Identify your customers intent: analyze the keywords so you can target the higher intent buyers
  2. Provide value that matches that intent: not only in your content or product. All of your website should provide the customer with as close as possible to what is looking for.
  3. Optimize your website: your website should be easy to navigate, responsive, and fast to load to keep customers interested.
  4. Use product shopping ads: the ads are a useful solution that can draw customers to your site. They target exactly according to your customer search and can boost conversions.

Vimeo Monetization 101: Top Tips and Tricks You Can Use Today

by | May 18, 2015 | Monetization

Vimeo monetization has evolved a lot over the past several years.

Whether you’re a hardcore marketer or whether you simply want to monetize your video content, Vimeo has a few options to choose from.

The Vimeo Tip Jar

Introduced in 2012, the Tip Jar offers a way for content creators to monetize videos directly from viewers. A button underneath the video labelled “Tip this Video” allows you to donate money directly to the creator of a video.

Donations are a somewhat common monetization strategy. You can ask for donations to fund apps, businesses, and so on. Though non-profits and startups can use donations and crowdfunding effectively, tips aren’t always the most effective monetization strategy.

As with most other marketing strategies, you’ll need to be aggressive if you want to earn money through tips:

  • Explicitly ask users to leave tips. Include calls-to-action in the video description, in the video itself, and even in the headline (video title).
  • As with any business model, you’ll need to develop an audience. Your audience is your customer base. And the more they like your videos and the more they value your content, the more likely they are to leave tips.

To use the Tip Jar, you’ll need to be a Vimeo Plus or Vimeo Pro member.

Vimeo On Demand

Vimeo On Demand is exclusively for Vimeo Pro Members. This allows you to create a hard paywall for your video content. That is, people will need to pay in order to view your videos. You’ll keep 90% of the revenue after transaction costs.

You can embed and sell videos through your own website and through Vimeo’s platform.

This strategy can be very effective, particularly if you have a strong following and high-value content. Here are a few tips for using this method:

  • Create a series of free videos that act either as teasers or introductory material. This will help you grow your audience. And it will give people a taste of what you’re offering and showcase the value of your premium videos.
  • Market both inside and outside of Vimeo. While Vimeo has its own targeted audience, there’s a big world out there. The more people you can draw in through social media, websites, and other marketing channels, the more money you can make.
  • Continually experiment with your pricing and marketing. You can set your prices as low as $.99. When you use marketing tactics that imply scarcity – such as limited time offers – then people will be more likely to buy in. You’ll get a smaller profit margin, but more customers. Read more about marketing psychology and keep experimenting.

Becoming an Affiliate for Vimeo

Another way to earn money from Vimeo doesn’t have to involve making videos at all.

Like with any other affiliate program, you can earn a commission. Each time someone clicks an affiliate link placed on your site, in social media, in email, and so on, you’ll be able to earn a commission. Vimeo pays out commissions whenever someone signs up for a Vimeo membership.

Here are some basic tips for actually getting clicks, sales, and commissions:

  • You need to have a pre-existing brand, replete with content and users. The early days of affiliate marketing are over: today you need customers that trust you and your recommendations.
  • Sell people on the value of Vimeo services. This is easier to do if you have people that trust you. And it’s easier if you’ve got content that relates to Vimeo somehow. If you write a blog post on video monetization, for instance, it will be much easier to sell Vimeo to your customers than if you simply tack an ad on the side of your blog.
  • It will be easier to sell Vimeo’s services if you have your own account and actually use Vimeo. So if you have an upgraded membership, then you can promote these services and make the sale based on your own first-hand experience.

​Become eFamous

YouTube is well-known as a hub for self-made stars. But Vimeo’s doing everything it can to compete with YouTube, including poaching a few YouTube stars.

Since Vimeo doesn’t run ads, online celebrities will need to find another way to monetize their Vimeo videos. Here are a few:

  • Use the above-mentioned Vimeo On Demand service to charge. The right number of subscribers and the right price point can shoot your revenue through the roof.
  • Consider product placement or other in-video sponsorship opportunities. While Vimeo doesn’t run ads of its own, there’s nothing to stop you from signing up with third parties to develop your own in-video sponsorships.
  • Use a third-party service like Patreon. This service allows artists, creatives, and other content creators to earn money each time they release a new piece of content. You’ll need a following who is willing to contribute to your success. Simply sign up on Patreon, build a following, and drive them to your Patreon page. Each time you release a new video, you’ll earn money.

Vimeo monetization is slightly different than YouTube monetization. But with the right strategy and the right content, it has lots of potential.