Is YouTube’s New Ad Policy Beneficial?

NIHT

28 May 2021

YouTube, which is currently the biggest streaming platform, has announced its new monetization policies which don’t seem to favor smaller creators. Earlier, in order to monetize your channel it was necessary to have at least 1000 subscribers and a total of 4000 viewing hours. This came under the YouTube Partner Programme (YPP), and it was their intention that brands should advertise on the channels that give them some results.

What changes did YouTube make?

Under the new terms, YouTube keeps the right to run ads on any piece of content. Previously, ads were displayed by YouTube on videos of creators with the required number of subscribers count and views, as per the YouTube Partner Programme (YPP). With this new policy however, YouTube will also place ads on videos of creators who are not a part of YPP and it further states that it will not share any money received from the ads with the smaller creators. The commencement date for this new policy is June 1, 2021

How does it affect Content Creators?

These newly revised terms of services will affect advertisers, creators, and viewers. Advertisers will get the flexibility to select creators on whose content they want to show ads. By including this new ad policy, YouTube presented advertisers with the liberty to magnify their marketing strategies.

However, the brands will have to be careful while running ads on smaller channels. YouTube ads target their audience based on demographics, interests and behavior, and with this change, YouTube opens the possibility of ads on all kinds of channels, i.e the ads can be shown on any video. Brands might risk wasting their ad budgets if they only end up running on smaller channels. This will however,  make advertising cheaper. But if the ads don’t perform well, don’t reach their target audience and no revenue is received, then the brands will start to lose money.

Talking about smaller creators, this group is the most concerned because the income received from the ads on their content will not be shared with them. Furthermore, running ads on their channel might impact their growth. Many creators, especially when starting out, choose not to place ads on their videos because it not only irritates the viewers, but also hampers the viewing experience. With these new changes, now they won’t have a choice. As for the big creators under the YouTube Partner Programme (YPP), there could be a drop in their share of profits through ads. Irrespective of what happens, the viewers will have to suffer because of advertisements.

Conclusion

To conclude, there are three major points that comes out as a result of the changes:

  • YouTube will display ads on any kind of content, irrespective of the fact whether the channel falls under YPP or not.
  • YouTube will not share the revenue generated from ads with its creators.
  • Users might be charged fees for YouTube’s Premium Paid service.

YouTube is considered a very creator-friendly and user-friendly platform. However, with any major change such as this, there will be much speculation regarding the new terms of service. Hopefully this blog has helped you understand the revised changes, while keeping in mind the perspectives of advertisers, creators and the viewers too.

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