How to Monetize Your Videos

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A t its simplest, when we say monetize video, what we mean is that we're partnering with advertisers that overlay our videos with plugs for their products.

But how does one go about doing this, exactly? And what makes the difference between pennies and dollars when it comes to how these ads that go along with our videos perform?

A lot of attention is paid to YouTube in the realm of videos that earn cash for the creators. This is especially the case since the company eliminated its application process from its Partner Program. YouTube monetization is now quick and easy to do, and if it works, then everyone gets paid.

It really is as simple as checking a box. YouTube's upload wizard then walks you through what ad formats you'd prefer to put with your video content.

The two main formats are overlays, which often look like a lower-third title on the screen, and in-stream, which appear more or less like the commercials we see on TV, preceding or in the middle of the material. Once you've enabled ads, YouTube tracks the number of views that your video generates and the company pays out a percentage of earnings every month. The company hasn't divulged what kind of a cut it's taking, by the way, but some users claim that it's around half of the total paid by the advertiser. One other note: You have to generate $100 in revenue before the disbursement is made, otherwise the total rollsover from month to month.

There are other methods of monetizing, too. Some key options include proprietary deals and third-party sites.

If you have the ability to pipe video through your own audience-facing website—and you think you've a big enough reach to go it alone—then a stand-alone payment system may be the way to go. Visitors pay you directly for access, whether a one time look or by subscription, and they then receive a username/password for your site. Other options in the proprietary model include offering brands a sponsorship opportunity for a particular video or series, and also licensing opportunities so that brands might carry your content elsewhere. All of these, are of course, predicated upon the idea that your audience-size supports the pitch you make to the advertiser.

Even you aren't going to host the video on your own site, YouTube is not the only game in town. There's PK4 Media, Google Individual Video Program (now mostly merged with YouTube) and Blip.TV to name a few.

So, you've clicked the box, created your own pipeline and gotten into the monetization game. Now, how to get some cash into your account? Here are some prime considerations that should move you closer to the money-making phase of your effort.

• Audience is everything, so listen to yours. Know who they are, and know what they'll accept. Your video is the reason they came, so don't create an advertisement environment that will drive them away. Some consumers of content will never notice an overlay, but they won't sit still for a pre-roll in-stream ad, or an interruptive advertisement in the middle of your clip. If you work with your audience in a forum, use it to solicit opinions and to monitor reactions to your early monetization moves.
• Use in-stream ads carefully. While on the subject of the—type—of ad with which you monetize a video, understand that time is inherent to an online viewers' consideration of value. A 30-second pre-roll is going to feel a lot less acceptable if it precedes a one-minute piece. It's not as onerous to sit through if you're about to provide 30 minutes of content, however. Be smart when it comes to what you ask of your audience with in-stream ads.
• Build a platform your audience (and advertisers) can trust. This means that the quality and the frequency of your videos has to be set at a certain standard, and then it has to stay there or exceed it. Long gaps between updates, shoddy work after creating an expectation for high-end stuff ... all of these are revenue killers once you've entered the monetized milieu.

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