Why does YouTube has so many ads?

Updated at 08 Nov 2022

In recent years, advertising on YouTube has become increasingly popular. Users noticed ads in their videos, regardless of whether the creators monetized them.

A man in the dark covers his eyes with a phone with the YouTube logo on the screen

Many users are now wondering if YouTube has changed forever and if they want to use the site again. While more ads mean more people pay for content, that's only partially true.

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YouTube Has So Many Ads

There are many reasons you might be seeing more ads than you used to. YouTube content creators have voiced concern about the recent advertisement problem and how it has affected their viewership.

Content creators are those who create videos and other digital media online. YouTube has not provided any explanation for the increase in ads despite the outcry from content creators and consumers.

Although they have chosen to talk about online marketing innovations, this has made creators, and consumers feel neglected.

#1 Creator Ad Settings

YouTube partners offer a variety of advertising settings, which may explain why you see more ads. A YouTube partner is a content creator that has been qualified for monetization.

YouTube partners can choose from four types of ads: bumper ads, skippable ads videos, non-skippable ads videos, overlay ads, and bumper ads.

Every type of advertisement has its platforms and takes on different characteristics. Skippable ads can be described as advertisements you can skip after 5 seconds. However, they are usually longer videos.

Unskippable ads are those 15- to 20-second videos that require the viewer to watch the entire video before they return to the original video. Bumper videos are short, non-skippable ads that appear before and after a video.

These videos average six seconds in length. YouTube partners must ensure that skippable and unskippable advertisement settings are turned on.

Overlay ads can only be used by viewers on a computer. These ads usually only contain images located in the lower 20% of the screen. They measure 486 px x 60 px or 728 px x 90 px.

YouTube partners can also decide whether to have middle-roll advertising. These are ads that appear in the middle or end of a video. They are indicated by yellow tick marks at the video's progress bar.

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#2 Only a small percentage of ad sales goes to the creators

Content creators are often shocked at how little they can make from YouTube's AdSense program when they first become YouTube partners. YouTube partners only get 68% of AdSense revenue.

Glowing youtube logo on gray background

The number of views a content creator gets and the engagement they get from their ads is two factors that influence how much money they make. Different ads promise different engagement levels but at the expense of irritating the audience.

Engaging with advertisements can be defined as viewing an ad and having the audience interact with it. Non-skippable ads are more likely to get the most attention, but they can also be irritating.

On average, a YouTube partner makes about $18 per 1,000 views. Low engagement levels may mean that some partners only earn $3-$5 per 1,000 views.

A channel that receives 1,000 views per day with a 50% engagement rate will only make $1.84-$3.06 per day. It amounts to $55 to $92 per month and $671 to $11,118 annually.

For comparison, Markiplier and Mr. Beast are making between $12.5 million to $29.5 million through their YouTube channels. Most YouTube partners feel that more than AdSense is needed to keep them afloat.

#3 YouTubers don't make enough from ad revenue alone

Many YouTube partners have started selling their merchandise or advertising with businesses as partnerships to make up for the shortfall in AdSense. Creating daily YouTube videos can take a long time, especially if content creators choose to edit their videos.

Many content creators must start creating their brands to ensure enough time for their fans and channel. YouTubers will make more money if they partner up with a company or brand directly.

You might see Ridge wallets or the mobile game raid Shadow Legends. The creator can also make a larger investment rather than relying on the number of views.

Many YouTubers start to sell their merchandise after their YouTube partners have gained a following of around 100,000. The YouTubers will then need to market their products and make money by selling the merchandise.

YouTube has seen a lot of partner brands on YouTube that has been just as popular as their creators. Cloak by Jacksepticeye and Markiplier are some of the most notable examples.

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#4 Doubling Up Ads Works Better Than Interrupting A Video

YouTube recently added a new variant to its traditional ad formats. This has been so disregarded by users and content creators that a petition has started to get them removed.

Social media platforms recently began showing viewers double advertisements at the beginning and end of videos. YouTube and its advertisers have found that double ads placed at the beginning of videos are more effective than interrupting them.

Consumers find these double ads much more irritating than the actual content. YouTube discovered recently that mid-roll ads were causing viewers to lose interest in both the creator and their advertisements.

Viewers blame distracting mid-roll ads for making them lose interest in what's being shown. Many consumers are skeptical about the real motivation YouTube had for creating the double ad. Why not reduce the amount of ads on the platform and make it less distracting?

YouTube claims that these ads have attracted more attention compared to the previous ad format. However, content creators are seeing little of an increase in AdSense revenue and are suffering from the increased number of YouTube ads.

#5 TikTok and Twitch Competitive Deal

YouTube has been the king of online content for many years now. It has witnessed the rise and fall of many social platform competitors, such as MySpace and Vine.

YouTube believed that history would repeat itself once Twitch went public. Instead, YouTube received a rude awakening.

Black phone with Peppa Pig cartoon on a green background

Twitch allows partners to choose whether they want to show ads and receive direct support from viewers through a subscription. TikTok makes it easy to see content creators and pay for them through the short video platform.

Twitch was responsible for 65% of all online streaming views when it became popular. YouTube tried to cut that number down by offering streaming services, but that wasn't enough.

Twitch has attracted a lot of viewers from YouTube. This was achieved thanks to Mixer, a Microsoft platform.

YouTube realized that live streaming was not possible and decided to stick with traditional online videos. TikTok, like Twitch, hit YouTube viewers hard again and has become a phenomenon that almost every generation follows.

YouTube decided to copy its competitor YouTube Shorts. YouTube felt the need to show more ads to individual viewers due to the smaller audience.

They couldn't get 100 viewers to watch one commercial, so they decided to make one viewer watch ten ads before they left the platform. YouTube is rapidly losing users due to ad processing issues and confusion with content creators.

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#6 Free service

YouTube is free to use, but the creators of the platform need to be able to pay their bills and their employees, which is why ads are so necessary. Most consumers recognize that advertising is a necessity, and many of them will not mind watching short ads, especially if they know that the money they see goes to the content creator.

YouTube, like any other company, offers a product that it wants to sell to the highest bidder. Its valuable product is you and your time spent watching ads. Unfortunately, YouTube is more interested in selling its rare assets than in providing reliable services, which is the biggest complaint from many users.

Plus, YouTube makes it all the more frustrating because everyone knows the platform is making enough money to keep expanding and still pay their bills and more. YouTube made $20 billion in ad revenue in 2020.

YouTube does not run the risk of being left without money. Many users are skeptical about the obvious and desperate grab for money.

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#7 YouTube Premium Marketing

Night street illuminated by neon advertising

Betting on the number of views could be more useful for the business side of YouTube. But by offering a paid subscription that charges a regular fee, like YouTube Premium, YouTube can more accurately calculate how much money they make.

Most consumers wondered why anyone would pay for a free service when YouTube Premium (originally known as YouTube Red) was first introduced by the platform. YouTube has struggled to improve the service, even producing original series, but still, not many users subscribe to YouTube Premium.

There is a very popular theory among creators and consumers that YouTube's increase in the number of ads you see in their free version is specifically designed to give consumers more reasons to subscribe to YouTube Premium. However, there are opponents of this theory who believe that YouTube receives much more income from ads and not from YouTube Premium subscriptions.

So a reasonable question arises, what potential profit is YouTube ready to sacrifice for the sake of stability and consistency?

#8 Ad blocking

Only some consumers annoyed by endless YouTube ads are willing to pay for YouTube Premium. But to the great joy of all comers, there are many ways to bypass ads on YouTube, and there is much different information on the Internet about these very methods.

The most common way to avoid intrusive ads is to install ad blockers on all your devices. Although ad blockers look like a happy rescue, things are not so simple in their case because they can give errors and have viruses.

To the delight of many, Reddit users, Android Police, and 9to5Google have shown their Reddit communities a safe and proven way to get rid of annoying ads. You should copy the URL of the video you're watching on YouTube and paste it into the website's browser tab in incognito mode.

Then you need to add an extra dot after ".com" in the YouTube link. In other cases, in cases, it may be more appropriate to view an advertisement because not everyone likes to do such a trick every time because it takes some time.

At the moment, more and more consumers are finding new and new ways to bypass intrusive ads, and YouTube, in turn, continues to provide its regular viewers with even more ads to watch, as it feels like a drain on funds. However, this attitude will push viewers more and more to find new ways to block ads on YouTube.

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#9 Online Advertising is More Effective

Internet advertising has already shown itself as one of the most successful and convenient ways to promote the company, yourself, and your products. Advertising on YouTube has proven its effectiveness and has become quite popular among manufacturers.

Two square volumetric YouTube logos on top of each other on a gray background

As with the rest of the Internet, YouTube ads have a wide reach. This means that you can make yourself known even to those consumers who previously had little chance of learning about you and your products or services.

Many Internet commercial sellers conduct research for the commercial firms they work with. They match the content creator's target audience with the company's target audience.

Usually, if the video is about dog training, you are more likely to see ads for dog food. Videos dedicated to cars are more likely to contain ads for engine oil or other car components.

Interaction with the target audience increases brand awareness and gives a direct answer about the attitude of the audience to the product. In addition, YouTube offers its advertisers online analytics to help them place ads in the most effective way. Working with online advertising is so simple and straightforward that television commercials are about to sink into oblivion.

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#10 It is cost-effective

Another reason why YouTube ads are so popular is because of how profitable and inexpensive it is. One ad impression costs between $0.10 and $0.30, depending on format, placement, and so on.

For 100 advertisements, a small entrepreneur pays about $10 a day. YouTube has long been taking bids for its ad positions due to its incredible popularity. Of course, these expenses are ridiculous compared to the cost of advertising on the country's television channels.

The approximate cost of a TV spot is $104,700, and that doesn't include the cost of film production, which can run anywhere from $2,000 to over $50,000, according to conservative estimates.

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Conclusion

Ultimately, YouTube will have to decide what's more important to it: listening to its creators and consumers or juggling its ad revenue. They know they have a product and service unlike anything else on the market, so it makes no sense to risk flooding the platform with ads.



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