YouTube ads have become increasingly more common, and users have been seeing ads on the videos they watch, whether the content creators have monetized their channel. The frequency of video ads has caused many users to question why does YouTube have so many ads on videos.
YouTube shows a large number of ads on videos because it is a healthy source of revenue for the company, helping it maintain the office, structure of videos, and pay salaries of YouTube professionals working there. Most of YouTube’s revenue comes from these ads, which also helps its content creators. There are many other reasons for video ads, such as the creator’s ad settings, channel monetization, video length, and cost-effectiveness of ads.
Key Reasons Elaborating Why There are Many Ads on YouTube
There are multiple reasons behind ads on videos, ranging from things that content creators control to the decisions made by the working professionals of YouTube.
Most content creators have raised their voices about the recent advertisement problems on the platform and how ads have lowered their number of viewers. Also, check the YouTube App Log Out.
Despite the uproar from consumers/viewers and content creators, YouTube has not given any answer for showing ads on videos.
They have spoken about the innovations they are making to revolutionize online marketing, which has caused content creators and consumers to feel ignored.
There are the following reasons why YouTube shows ads on videos.
Creator’s Advertisement Settings:
One of the reasons you may be seeing more ads in the videos is the advertisement settings the creators or YouTube partners have. A YouTube partner is a content creator or channel owner whose content is eligible for monetization.
A creator can choose four types of advertisements: Skippable ad videos, non-skippable, bumper, and overlay ads.
Each type of ad has certain working platforms that help it to take on unique traits.
- SKIPPABLE ADS: You can skip these ads after five seconds. These are longer videos, but you can skip them after five seconds.
- UN-SKIPPABLE ADS: The 15-20-second videos that make the viewer watch the entire ad video before returning to the original video are called unskippable ads.
- BUMPER ADS: These are short and unskippable videos that play before and after a video. On average, these are only six-second videos; to run them on content, YouTube partners must have their skippable and unskippable ads settings turned on.
- OVERLAY ADS: These are completely different ad options because they can only be applied to viewers watching videos on a computer or laptop. These ads are images found in the lower 20% of the video and measure 486 pixels by 60 pixels to 728 pixels by 90 pixels.
- MID-ROLL ADVERTISING: The ads running in the middle of a video and indicated by yellow tick marks are called MID-ROLL ADVERTISING.
So, these are the ad options that a content author can choose to run on his videos, which is one reason behind ads on videos.
Low Income from YouTube’s AdSense Program:
Initially, when content authors become YouTube partners, they get only 68% of the revenue from YouTube’s AdSense program. The remaining 32% goes to YouTube. That’s why YouTube Partners decided to run more ads on their videos to make money.
Two factors, the number of views and the amount of engagement those ads have, decide the revenue of the content creator. Engagement in ads means viewing the Advertisement or having the targeted audience for those ads.
The non-skippable ads have the highest engagement rate, but these can infuriate the consumers.
With high engagement, a YouTuber makes about $18 per 1,000 views on average. On the other hand, when engagement is low, they only make about $3 to $5 per 1,000 views.
It means revenue depends on the rate of engagement that ads have.
Advertising Directly with Businesses Through Partnerships:
To fulfill the lack of money that results from a large portion of AdSense revenue going to YouTube, many YouTubers decide to advertise directly with businesses through partnerships or trying to sell their own merchandise.
Making daily videos for YouTube is a time-consuming process. Therefore, YouTube partners have started working on their own personal brands to grow their fanbase.
YouTubers will earn much more money by directly collaborating with other brands or companies than by making videos for YouTube.
After making their merchandise with a following of about 100,000, YouTubers will have to market their products to their target audience to make the money they spent on making the merchandise.
Some of the best examples of YouTube partner brands and their partners include Clock by Jacksepticeye and Teddy Fresh by H3H3.
Double Ads at the Beginning and the Ending of Videos:
YouTube has recently introduced a variant of double ads at the beginning and the ending of videos to their traditional ad formats that consumers and content creators have largely despised.
Research by YouTube and some of its advertisers has made them believe that double ads at the start and end of a video are more effective than interrupting the entire video.
YouTube found that mid-roll advertising resulted in the loss of viewers. That’s why it introduced a double-add variant at the beginning and end of the video to increase engagement and revenue. However, most consumers question why YouTube has initiated double ads because getting the content they want to watch is a hassle.
Free To Use Application:
Another reason behind these ads is that it is a free-to-use application, and they need money to pay their bills, staff members, and YouTube partners. That’s why YouTube runs ads on the videos.
Like all other businesses, YouTube offers products to its highest bidders. You and your time watching their ads are YouTube’s high-value products or assets.
Therefore, YouTube runs ads on the content to sustain and expand itself comfortably.
High Competition from TikTok and Twitch:
For many years, YouTube remained the King of Online Content.
However, with the launch of TikTok and Twitch, many YouTube audiences shifted towards these platforms, where they found opportunities to be noticed and paid.
With its Short video feature, TikTok attracted the attention of many content makers and put a dent in the number of YouTube users.
Similarly, Twitch, with its amazing live-stream feature, started gaining 65% of all live-stream views on the internet.
When YouTube noticed a significant decrease in users and watch time, it introduced YouTube Shorts similar to TikTok and a Live-Stream feature resembling Twitch. Moreover, due to high competition, YouTube placed more ads to increase the revenue for content creators.
More Online Advertisement Opportunities for Companies:
Online Advertisement is an effective strategy for big business companies to market themselves and their goods. As YouTube ads are highly effective and in high demand due to their global reach, companies can use them to increase their online Advertisement and reach the target audience.
For example, if a video talks about woodwork or general repair, it is likelier to feature ads on tools or home improvement products.
This way, companies can enhance brand recognition through online ads and get more direct consumer responses.
That’s why more ads on videos are very effective in this regard.
Cost-Effectiveness of Ads:
The reason behind ads on videos is the cost-effectiveness of these ads. That’s why most of the companies desire to advertise themselves through ads. The rate for a single advertisement ranges from $0.10 to $0.30, depending on the engagement, bidding, placement, and format.
Most small-scale advertisers spend $10, which gets them 100 advertisements. On the other hand, Advertisement on National Television Network costs $104,700, not including other expenses like production costs.
So, due to their cost-effective nature, the videos have more ads.
These are some of the reasons why YouTube has ads on videos!
How to Block YouTube Premium Ads? (Pay for YouTube Premium, Install Ad Blocker to Stop YouTube Ads)
Streaming YouTube ads are inevitable, but it is intrusive and frustrating. But don’t worry; some ways to eliminate these pesky ads exist. These are as follows.
Get a Subscription of YouTube Premium:
The Premium version of YouTube is similar to the original YouTube but without ads. Integrated with YouTube Music Premium, users can play ad-free songs and videos in the background on a desktop. Moreover, users can also download videos to watch them later.
This way, paying for a Premium package is a legal and ethical way to skip ads, ensuring the content authors get paid.
If you are using YouTube on Google’s Chrome, you can install an Ad-Blocker extension for YouTube that helps you skip ads while watching videos.
Similar Ad-Blocker extensions exist for Firefox, Microsoft Edge, and other desktop browsers.
Wait for a Few Seconds:
Most streaming ads that play before or during a YouTube video are short and skippable. Thus, wait for a few seconds, and when you appear, click on “Skip Ads” after the required five seconds.
Report the Commercial by Pressing Tab + Enter:
During a pre-roll ad on a YouTube video, press Tab + Enter to prompt for the “About This Ads.” From there, choose “Stop Seeing This Ad” and click “Report This Add.” This way, you will not see ads from that advertiser in the future.
Try Out YouTube Clones:
All the above methods effectively skip ads on the desktop version of YouTube. To stop ads on your Android smartphone, download the YouTube clones/apps. These apps will not be available on a legitimate company store like Google Play Store. Their examples include SmartTubeNext, NewPipe, Snaptube, and SkyTube.
So, these are some effective ways to help you stop ads while watching videos on YouTube.
Many YouTube partners and content consumers have raised their voices over why YouTube has so many ad ads. It’s up to YouTube whether it gives importance to its partner’s and consumer’s reviews or decides to make more dollars from the ads.
Multiple reasons, such as the Advertisement settings of the content makers, double ads at the start and the end of a video, the cost-effective nature of ads, more opportunities for companies to advertise themselves online, and others cause ads on YouTube. To stop ads on your videos, subscribe to YouTube Premium, install an ad-blocker, wait a few seconds to skip ads, or report it from the About section.
Frequently Asked Questions about Why YouTube Has So Many Ads
Why Does YouTube Have So Many Unskippable Ads?
YouTube’s dominance on connected TVs is the reason behind the large number of unskippable ads on this platform. This dominance drags the short to a 30-second unskippable video. Moreover, YouTube capitalizes on its viewership and helps users reach more target audiences.
Why Are There Ads on YouTube Premium 2023?
There are some ads on YouTube Premium because you have an unstable internet connection and lose track of your Info. Log in and out of the app to fix the problem.