YouTube is Losing Creators’ $750 Million Dollars!

In a very short amount of time advertising darling YouTube has taken a fall from grace. The veil has been lifted and companies advertising with the Google owned site have suddenly recognized one of the platform’s most significant shortcoming. Next to wholesome brand campaigns aimed at winning the hearts and minds of consumers is often indecent video content chock-full of violence, misogyny, racism and vulgarities. Unlike traditional marketing channels, where companies can review the content their ads will be coupled with, YouTube is the Wild West. An advertisement for Girl Scout cookies could easily end up as pre-roll for the latest hit Neo-Nazi music video. Or in a very real world example, advertisements from the UK government were appearing next to radicalized terrorist videos. YouTube’s current safeguards attempt to prevent mismatches and block content inappropriate for ads, but they are not always effective. Very public, recent mishaps have left a bad taste in Advertiser’s mouths, leading many blue chip names such as McDonald’s, Toyota, L’Oreal to pull back or completely shut down their YouTube ad spend.


In response YouTube is scrambling to beef up their advertising algorithms in an attempt to insure that videos violating their intense monetization criteria are properly flagged and demonetized.  Considering just how stringent the platform’s monetization rules are, it is impossible to make a truly foolproof system to prevent inappropriate content from delivering ads. Google’s most viable solution has been to approach a very intricate problem with a bazooka. They’ve begun to cast a wide net, flagging videos with any sort of questionable content and some without. An unfortunate consequence of this nuclear option is that millions of ad eligible videos are being wrongfully slapped with a demonetization sticker – an issue that is already being noticed and costing creators their livelihood.


What this means for creators:


The recent controversies surrounding YouTube ads have led to companies cutting their ad spend. The profit pie from which creators can take a slice has shrunk. The platform’s new algorithm is accidentally tagging an alarming number of videos as demonetized, making it harder than ever for YouTubers to even have a chance at crumbs. There is less to be made on ads and to make a bad situation worse; it is harder than ever to get a video approved to deliver ads. It has been predicted that the coinciding of these two phenomena will cost creators over $750 million dollars.[1] This is surely a hit for YouTube but that sort of revenue loss will be overcome­ – one of the many perks of being owned by the world’s largest company. It is a different story for the 100,000’s of creators impacted, who are suffering an incredibly consequential loss. That sort of cut to ad spend means creators are going to lose money, possibly up to 10% of their already paltry cut. The money they need to pay the bills and put towards creating more content is drying up. This certainly isn’t the end of YouTube, but it is a reminder that relying solely on the platform for monetizing content is risky business.


Alternative revenue streams:


It is not your fault abhorrent videos on YouTube are going to cost you dollars. Take your content’s destiny into your own hands. As a creator you have options to self distribute your videos, no longer relying on a platform such as YouTube that take a significant portion of your revenue. By launching your own video streaming service (think your own Netflix or HULU) you can take your fan base and revenue to the next level. You can still enable ads that will start delivering automatically, however now you get to keep the vast majority of payout, instead of ceding YouTube’s huge cut. You also have the option to sell your content as a subscription service or with video on demand, once again allowing you to keep nearly all the profits. In addition to increased monetization opportunities, having your own video streaming service allows you take control of your fan base by collecting their emails, opening up marketing opportunities and the chance to nurture your relationship with them.

With you can instantly launch your own video streaming service for free and then roll out custom branded apps for every smart device. Unreel’s ad partnerships ensures when you enable ads, you will deliver ads with higher payouts than on any other platform; payouts you keep the lion’s share of. Monetize with SVOD, VOD, and merchandise as well. Using Unreel there is no commitment and you can continue your activities on YouTube and other platforms as you currently do. If you are looking for an additional way to profit from your content brand and continue to grow it, Unreel is the platform for you!


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