We all know how big they are, what I don’t understand is how they manage to sponsor literally everyone, from the smallest content creator to the most known, what baffles is that they do this on an international scale, on every corner of the world you will see a youtuber or a streamer being sponsored by them
In: Economics
Youtube ads pay about $2-8 per 1,000 views.
Sponsor payment is on top of that, so it is just extra money for the channel. They may pay as low as $2 per 1,000 views or as high as $30 per 1,000 views.
At $10 per 1,000 views they are paying only $10,000 for a video with 1 million views. A 30 second commercial on a national tv network costs on average $115,000 to show it once. So they can sponsor 10 million views of youtube videos for the cost of one 30 second commercial airing.
Because the pay per view, the size of the channel does not matter. Sponsoring a lot of small channels costs the same as if they were sponsoring one large channel.
https://www.shaunpoore.com/youtube-sponsors/
https://fitsmallbusiness.com/tv-advertising/
They sell a service that’s narrowly targeted. That target audiance happens to be almost exactly equal to the people who watch YT. It makes YT sponsorship very effective to reach their target customers.
Their finances is not open to the public. So we can not actually know exactly why. But we can speculate. They could be making a lot of money selling subscriptions and spending most of this money on advertisement. Or it could be that they are making money some other way. They are handling a lot of personal data about all their clients as they get them to send all their Internet traffic through their services. And as they say in their advertisement the world is full of evil companies that want to sell your personal data for money.
Companies spend lots of money on advertising – more than you realize.
Sponsoring a bunch of people (even a *ton* of them!) reaches a worldwide audience for probably less than the cost of a TV commercial.
the name brand recognition they get is way more valuable than whatever 5 people a tiny youtube channel likely will bring in. *everyone* knows that brand name, and it’ll only be more pervasive the more people they sponsor.
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