YouTube, AdSense? Now joined at the hip, there was a time when Google was still figuring out how to best take advantage of the combined power of YouTube and AdSense.
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In 2006, Google paid $1.6 billion to acquire YouTube. Fast forward to today, and Google just reported that YouTube generated over $15 billion in advertising revenue.
That's equivalent to 20% of what advertisers invest across all US television networks combined. Not a bad investment!
It wasn't long after Google acquired YouTube that they tied it to AdSense, which is a program that allows website publishers to earn money by showing content-sensitive Google ads on their web pages.
In that first attempt to tie YouTube and AdSense together, Google created a revenue stream for AdSense publishers, even if they were not publishing YouTube videos.
All the web publisher had to do was embed YouTube Videos for which the video creator had enabled Google YouTube ads. Just by showing the YouTube videos, any AdSense participant was able to show third-party YouTube videos and earn money from the ads.
That program was short-lived, however. Today, Google's official policy is that "Only YouTube and the video owner will earn revenue from ads on embedded videos; the site owner where the video is embedded will not earn a share."
So how does a YouTube video creator earn money from AdSense?
Advertising revenue is shared between YouTube and the video creator through the YouTube Partner Program (YPP). YouTube video creators report that YouTube revenue is shared via by Google and the video creator with a 60-40 ratio.
If you have a YouTube channel and want to monetize it, the first step is to enable monetization on the YouTube channel, apply for an AdSense account, and then link it to your YouTube account.
You'll then be able to turn on AdSense ads within your videos and make money every time the ads are shown. The amount earned from an individual YouTube video ad depends on many factors. Generally speaking though, you'll want to maximize views in order to maximize your AdSense payouts.
You'll get a payment from Google as soon as your YouTube AdSense earnings have exceeded $100 in the prior month.