Make 10X More Money With 50% Less Views

The model that YouTube has set for the creators is actually the best it can be. You don’t have to go out there and pitch to the advertisers, negotiate deals and try to actively solve for having a decent consistent cashflow for your business.

You just need to make content!

Advertising is not an easy business, but YouTube has made it easy on the creators’ side. YouTube has a significant presence in the online advertising market.

In 2023, its global advertising revenues amounted to approximately $31.51 billion. However, it is important to note that YouTube's advertising revenue dropped 2% year over year to $7.07 billion during the third quarter of 2022, missing analysts' estimates of $7.42 billion.

This decline in revenue indicates that the online advertising market, including YouTube, is facing challenges due to factors such as economic uncertainty and reduced advertising spending by companies.

The online ad market has been on a constant decline since 2022. The financial reports during the fiscal quarters of major tech corporations in 2022 highlight the existing turmoil in the realm of online advertising.

Microsoft's online advertising business reported a slowdown, with its search and news advertising business growing only 16% in the September quarter, down from 40% a year earlier. This decline aligns with the overall downturn in the online advertising market. Additionally, Microsoft's LinkedIn experienced a drop in quarterly sales growth from 42% in 2021 to 17%, underscoring challenges in the company's advertising efforts.

Alphabet's overall revenue growth plummeted from 41% to 6% in comparison to the previous year, reflecting concerns about an impending recession leading companies to scale back on advertising and marketing efforts.

Also, Snap's disappointing third-quarter sales of $1.13 billion, below analyst estimates, further emphasized the impact of companies slashing marketing budgets in response to economic challenges.

All due to significant reductions in customer acquisition budgets and pullbacks in spending.

But then where are brands spending their money on?

Where are they allocating their marketing budgets?

Is there a better customer acquisition strategy?

According to a recent study by Talent Management company Whalar:

• In 2021 and 2022, brands gained $2.40 in brick-and-mortar sales for every $1 invested in creator content.

• Despite constituting only 0.7% of overall media investment, creator content contributed to 2.6% of the total sales impact for brands.

• A report from social media marketing company Open Influence indicates that over 60% of marketers plan to boost their budgets for creators in the coming year.

• The return on investment (ROI) for brands investing in creator content reached 2.6% in 2022, marking a 38% increase from the previous year.

This is the new & effective acquisition channel as well as a cost-cutting strategy for companies; better known as Influencer Marketing.

Yes, content is actually cost-cutting; bringing your performance marketing spend literally down to 0, especially for businesses having low money-raising capacity and thin margins.

Though we have seen significant dips in marketing budgets, brands will have nearly the same capital but allocate it in a different way (which you can read about here in point 1) and should spend on creator content as: 

• Creators significantly influence consumer buying decisions compared to other media forms such as TV, online videos, and social networks.

• Unlike traditional advertising mediums, where ROI tends to decrease over time, the return on investment for content created by influencers has shown improvement over time.

More than anything, creators should be paid based on how well their content performs for brands.

Once creators realize the real value they bring to the table, they can make over 10x more money with relatively lesser views.

The leverage is in understanding how effective is your content for the brands so that the creators can have the ultimate power to dictate how any campaign should be!