Is YouTube Still Profitable? — 5 Amazing Reasons YouTube Makes Money Online

March 15, 2024

Yes, YouTube is still profitable. According to YouTube, it boasts over 2.7 billion monthly logged-in users. Each day viewers watch billions of hours of video that generate billions of views. These statistics come directly from YouTube and show the opportunity on YouTube. However, it's essential to note that competition on YouTube is intense. YouTube reveals that there are over 500 hours of content uploaded every minute and over 51 million YouTube channels on the platform. 

In this article, we will discuss the five amazing facts you need to know why YouTube is still profitable. Also, we will cover the different factors that increase profits on YouTube, ways to make a profit on YouTube, and niches that have high-profit potential. This article will uncover the 4 major reasons why some YouTubers claim that YouTube is not profitable anymore. In the end, will introduce to you another business model that might be better than running a YouTube channel. 

5 Amazing Reasons YouTube Makes Money Online

1. YouTube Has A Vast And Diverse User Base

YouTube's success in staying profitable is because of its large and diverse user base. Statista's data from 2022 to 2028 predicts a substantial growth of 346 million users, marking a 44.05% increase. By 2028, it's expected to reach over 1.1 billion users. This user base includes people from various backgrounds. It includes students and professionals, spanning different age groups. This diversity is a crucial factor in YouTube's profitability. With a wide-ranging audience, YouTube has become a top choice for both seeking information and enjoying entertainment. Also, advertisers benefit from this diverse audience because they can effectively target specific groups that ensure their messages reach the intended audience.

2. YouTube Advertising Revenue Is Surging

YouTube's advertising revenue is soaring, and this strongly supports its ongoing profitability. According to recent forecasts from WARC, YouTube's global advertising revenue growth in 2023 is expected to more than double the growth rate in 2022. It's projected to reach $30.4 billion in 2023, a 4% increase. Also, Statista reported that YouTube's global advertising revenues were around $29.24 billion, up by just under 2% from the previous fiscal period's $28.8 billion.

This substantial increase in advertising revenue highlights businesses' and advertisers' trust and confidence in YouTube. They consider it a dependable platform to showcase their products and services to a broad and engaged audience. This growing advertising income contributes significantly to YouTube's ongoing profitability.

3. YouTube Can Reach Anyone Through Ads

YouTube's profitability remains profitable due to its unmatched reach, particularly in the United States. It connects with more adults aged 18 to 49 than any single cable TV network. Furthermore, paid YouTube ads outperform TV ads. It captures viewers' attention 84% more effectively. This means you can reach a wider audience, including those unreachable through traditional TV advertising. Moreover, YouTube Ads provide precise targeting options. Beyond basic demographics like age, gender, and location. You can target videos based on topics, categories, and keywords.

4. YouTube Is A Money-Making Opportunities For Content Creators

The YouTube Partner Program is a way for content creators to make money from their videos. If you have a smaller YouTube channel with about 10,000 subscribers, you can earn around $200 for each video. For bigger channels with 1 million subscribers, that could be as much as $20,000, according to WebFX. If your video gets 1,000 views, you could make about $18. So, to make a six-figure income in a month, you'll need lots of views, partnerships with brands, and higher ad rates. Once your channel meets certain requirements, you can start making money. This includes money from ads in your videos, people who join your channel as members, and even selling your own stuff.

5. YouTube Has A Great Global Presence

YouTube's global presence is a big reason it's still making a lot of money. It's available in over 100 countries and has options in 80 different languages. Also, almost 95% of people on the internet use YouTube. In 2023, it's the second-biggest social media site worldwide, with 2.7 billion active users, out of 4.9 billion social media users in total. What this means is that YouTube lets you reach people all around the world. Whether you're a local business trying to grow or someone making videos for a big audience, YouTube gives you a way to do it. This huge global audience is a big part of why YouTube is still profitable.

How Much Profit You Can Make On YouTube?

According to ZipRecruiter, the profit you can make on YouTube is about $60,000 per year. Usually, for every 1,000 video views, YouTubers can earn between $1 and $5. However, your actual income is influenced by factors like what your channel is about, how many people watch your videos, how engaged your audience is, and how you make money from your videos. The number of views you get matters because Google splits ad revenue with you. They keep 45%, and you get 55%. Advertisers pay around $0.01 to $0.03 for each ad view, which means $3 to $5 for every 1,000 video views for a YouTuber.

According to Influencer Marketing Hub, mid-tier YouTubers with around 100,000 subscribers can make yearly incomes between $2,000 and $12,000. But top-tier influencers with millions of subscribers can earn multi-million-dollar annual incomes, according to Forbes.

How Many Subscribers You Need To Start Making Profit On YouTube?

To start making profit on YouTube, you need at least 1,000 subscribers on your channel. Additionally, your videos must accumulate 4,000 watch hours within the last 12 months to become eligible for the YouTube Partner Program (YPP). It shows people are watching significantly your videos. You'll typically start seeing some earnings after every 1,000 views on your videos, but this is only possible once your channel is accepted into the YouTube Partner Program. If you want to make substantial money on YouTube, aim to surpass 100,000 views per video.

What Are The Factors That Increase Profits In YouTube?

The factors that increase profits on YouTube are high-quality content, audience engagements, optimized titles and thumbnails, keyword research, and length of the video. Also, it includes leveraging analytics, promotion on social media, and ad placement.

High-Quality Content

This means making sure your videos have clear sound, good visuals, and interesting stories. According to Hubspot, marketers who focus on creating good content are 13 times more likely to see positive results. A survey by the Content Marketing Institute found that 86% of B2B marketers say that making quality content has made more people know about their brand, and 70% say it has brought in more potential customers.

Audience Engagement

Engaging with your audience is important to increase your profit on YouTube. You need to reply to comments and connect with your viewers. Gitnux reports that 71% of people who have a good experience with a brand on social media are likely to recommend it to others. This shows how positive engagement on social media can greatly affect a brand's reputation.

Optimized Titles and Thumbnails

Optimizing titles and thumbnails is a big profit booster on YouTube. A catchy title and an attention-grabbing thumbnail make people want to click your video. When more people click, you get more views and more ad money. Thumbnails and titles are the first things viewers notice, so make them stand out. According to YouTube, 90% of the best videos have custom thumbnails. Also, The Feed Marketing Report 2022 also reveals that titles are top priority for online retailers. Optimizing titles leads to a 250% increase in clicks and a 93.65% boost in conversions.

Keyword Research

It helps you find popular search terms related to your niche, like "top smartphones in 2023" for tech channels. Using tools like Google Keyword Planner makes this easier. According to the Search Engine Journal, when you include these terms in your content, you'll rank higher on Google, potentially getting over 25% of the traffic. In simpler terms, effective keyword research can significantly increase your earnings on YouTube.

Video Length

Video length affects YouTube profits. The right balance is the key. Longer videos mean more watch time, more ad placements, and higher ad revenue. On average, YouTube videos are about 11.7 minutes long, as per Statista. Social Media Examiner suggests videos between 7-15 minutes perform best. In simple terms, aim for this sweet spot to boost your YouTube earnings.

Analytics Utilization

Using YouTube analytics can boost your YouTube profits. Monitor your data to see what works and what doesn't. This helps you make better content, engage more viewers, and earn more from ads. A McKinsey & Company report says that those who use data and analytics effectively can increase profitability by up to 60%.

Promotion on Social Media

You can share your videos on social platforms like Facebook, Twitter and Instagram to reach more people. This can get you new viewers, subscribers, and potential income from different sources. As per Medium, 93% of marketers say that increased brand exposure is the main benefit of social media advertising.

Ad Placement

Placing ads strategically boosts YouTube profits. It's simple: Put ads where they work best to make more money. Find the right balance between ads and keeping viewers engaged. GoWit Technology suggests that Sponsored Ads in the right spots increase the chances of clicks, brand exposure, and high conversion rates.

How To Make Profit On YouTube?

You can make a profit on YouTube through ad revenue, sponsorships and brand deals, affiliate marketing, merchandise sales, channel memberships, and crowdfunding. Also, you can sell online courses and ebooks, live streaming, and YouTube premium revenue.

Ad Revenue

Ad revenue is the money you earn from advertisements displayed in your YouTube videos. YouTube pays you based on the number of ad views and clicks on your videos. The average earnings range from $2 to $5 per 1,000 views. For example, if your video gets 100,000 views, you could expect to make approximately $200 to $500 from ad revenue. To enable ads on your videos, you need to join the YouTube Partner Program and meet their eligibility requirements.

Sponsorships and Brand Deals

Sponsorships involve collaborating with companies or brands to promote their products or services in your videos. You can negotiate payment based on your audience size and engagement. Popular YouTubers with millions of subscribers can earn substantial amounts. Typically, it ranges from $10,000 to $50,000 or more per sponsored video.

Affiliate Marketing

Affiliate marketing involves promoting products or services through unique affiliate links in your video descriptions. You earn a commission for every sale generated through these links. Earnings can vary widely but may range from $10 to $100 or more for each sale. It depends on the product and affiliate program.

Merchandise Sales

You can create and sell branded merchandise, like t-shirts, mugs, or accessories to their fans. Your earnings can vary significantly based on your fan base, but you might earn anywhere from $1,000 to $10,000 or more per month from merchandise sales. It offers a unique and great way to engage with your audience and boost income.

Channel Memberships

YouTube offers channel memberships for creators with over 30,000 subscribers. Viewers pay a monthly fee to access exclusive perks and content on your channel. Your profits depend on your subscriber count and the tier pricing you set. You can earn anywhere from $100 to several thousand dollars per month through channel memberships.


Platforms like Patreon and Kickstarter allow creators to receive direct financial support from their fans. Many creators make between $1,000 and $5,000 per month or more from their supporters. This consistent income stream provides stability for content creators and helps fund ongoing projects.

Online Courses and Ebooks

If you have expertise in a particular field, you can create and sell online courses or ebooks related to your niche. Your profit depends on course pricing and the number of sales. You can start with $200, then once you gain lots of clients or students, you can upgrade and raise your pricing up to $1,000 or more.

Live Streaming

You can earn money through live streaming on YouTube by receiving Super Chat donations from viewers. The amount you receive varies, but you can get $5 to $50 or more for each donation. It depends on your audience's generosity.

YouTube Premium Revenue

You can earn around 55% of the revenue generated from YouTube Premium subscribers who watch their content without ads. The exact earnings depend on your viewership and the number of premium subscribers who watch your videos. This revenue stream offers a consistent income source for many creators.

What Niches Have High-Profit Potential On YouTube?

The niches that have high-profit potential on YouTube are:

  • Gadgets Reviews: Reviewing gadgets on YouTube is a profitable niche. Tech channels have a big audience. According to Think with Google, tech shoppers mostly research online (74%) rather than offline (26%).
  • Gaming: According to Statista, in 2022, there were about three billion gamers worldwide. Although it dipped a bit from 2021 because of COVID-19, it's expected to rise and go beyond those numbers this year. Plus, the global video game industry will break the $200 billion mark in 2022. In simple terms, gaming has high-profit potential on YouTube.
  • Health and Fitness: In the U.S, the health and fitness industry is worth around $30 billion, according to the IHRSA (International Health, Racquet & Sportsclub Association). It's been growing steadily at 3-4% each year for a decade and is expected to keep growing. So, making health and fitness content can bring in good profits on YouTube.
  • Home Improvement and DIY: Creating DIY and home improvement content on YouTube is a smart move. In 2021, a survey by the Home Improvement Research Institute found that 77% of DIYers use home improvement store websites for research. This means you can use your YouTube channel to review or show DIY products and become an affiliate. 

4 Major Reasons Others Claim YouTube Is Not Profitable Anymore

1. YouTube Has Fierce Competition

More YouTubers mean more competition. In 2021, Oberlo reported that there were over 37 million YouTube channels. This makes it tough for new or small creators to get noticed and make good money. Increased competition is why some YouTubers say it's not as profitable anymore.

2. YouTube Suffers From Ad Revenue Fluctuations

YouTube's ad revenue can be inconsistent. Alphabet reported YouTube's ad money isn't steady. In 2023's first quarter, YouTube made $6.69 billion from ads, down from $6.87 billion in the previous year. This drop happened because advertisers were uncertain about the economy.

3. YouTube Has Monetization Thresholds

Earning on YouTube isn't easy for new creators. You need 1,000 subscribers and 4,000 hours of watch time in a year for monetization. But, it takes time. On average, it's about 12 to 18 months to get 1,000 subscribers. Is This Channel Monetized found that six YouTube channels took around 254 days to hit 1,000 subscribers.

4. YouTube Can Demonetize Your Channel

YouTube demonetization hits creators hard. It means you can't earn money from one video or your whole channel. YouTube has strict rules, and breaking them can lead to demonetization. It can happen for different reasons like copyright issues, breaking hosting rules, or sharing controversial content. So, content demonetization is another reason why some YouTubers quit being content creators.

Is YouTube Still Popular?

Yes, YouTube is still popular. According to Demand Sage, it has over 2.70 billion monthly active users. More than half of all internet users worldwide visit YouTube at least once a month. The platform has a staggering 2.5 billion users globally, as per DataReportal. Also, people watch 1 billion hours of videos on YouTube daily, which generate billions of views. In short, YouTube is a massively popular platform. It is easy to use on mobile devices, and also a great place for businesses to advertise. However, due to its popularity, the competition gets tougher and tougher.

Is YouTube Still Worth It?

Yes, YouTube is still worth it. According to Marketing Charts, a whopping 82% of US adults use YouTube. Also, it's the second most popular search engine globally, just after Google, according to Global Reach. In fact, it gets more searches every month than Microsoft Bing, Yahoo, AOL, and combined. But, there are some challenges to be aware of. YouTube is super competitive, and its algorithm can be unpredictable. Additionally, It takes time and consistent effort to build a significant following.

YouTube Profitability Related Articles

  • 10 Highest Paying Niches On YouTube - This article contains 10 YouTube niches to help you increase your profit in starting your own YouTube. It also covers the six ways to make money on YouTube.
  • Top 10 YouTube Niches With Low Competition - If you are looking for YouTube niches with low competition, check this article. It will give you ten YouTube niches to make a profit. It also provides the steps to find a YouTube niche.
  • Top 7 Ways To Make Passive Income on YouTube - If you are thinking of different ways to make passive income or diversify your profit on YouTube, this article is for you. This article also covers some strategies for YouTube content creation.

Conclusion: Is YouTube Still Profitable?

Yes, YouTube is still profitable. According to Statista, in 2023, the brand value of YouTube was a substantial $29.71 billion. It is a notable increase from the estimated $23.89 billion just a year earlier. This positions YouTube as the eighth most valuable media brand on a global scale. Also, as per ZipRecruiter, the typical yearly earnings for a YouTube Channel in the United States amount to approximately $29.05 per hour. It is over $1,161 for a 40-hour workweek and significantly exceeding $100 per day. However, YouTube has tough competition with over 114 million active YouTube channels according to Wyzowl. 

Furthermore, if you're exploring alternative business models that eliminate challenges in YouTube, check local lead generation. With local lead generation, you can build websites for as low as $500 each and rank them in Google search results. Then, you rent these websites to local businesses for monthly recurring payments, which can range from $500 to $2,500. The remarkable aspect of local lead generation is its impressive profit margins that reach up to 95%. This is because you generate free traffic without incurring the costs in goods or inventory since you're selling leads. For example, I built and ranked the tree service website below for only 15 hours. It has generated $168,000 in revenue for me since 2015. If we calculate the hourly rate, it equates to a staggering $11,200 per hour. 

Local lead generation

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