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 Celebrity gossip/chatter host on YouTube 
  Quit full time administrative assistant job
 Revenue: $100,000+ yearly from YouTube
 Costs: $2,000 camera + $6 backdrop
   Make money through advertisements on your
    videos  Clicks or every 1000 impressions
 Monetize all videos
 1,000+ subscribers & regular uploads
 Video Views: $2.5 to $5 per 1000 views
 Channel Views: $0.01 per channel view
 Video: $2.4 million
 Channel: $0.75
  million
 Total $3.15 million
   TubeMogul  Research and advertising agency
               Celebrity      Revenue $

               Shane Dawson   315,000
               Annoying       288,000
               Orange
               Ryan Higa      151,000
               Fred           146,000
               Smosh          113,000
               Natalie Tran   101,000
   Banners & text ads
   Google Adsense
   Amount charged depends on:
    ›   Popularity/Visits
    ›   # of ads
    ›   # competitors
    ›   # interested advertisers
    › How much advertisers are willing to pay
$0.5 million a year
   Companies gives products or money for
    recommendations
Should they disclose they are getting paid?
              • Visible ads (YouTube/Blogs) that
       No
                recognizable by a reasonable
Disclosure
                person
              • Hard to recognize ads that are
                biased (Recommendations)
Disclosure
              • Federal Trade Commission requires
                disclosure

       People do not follow these rules!

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Price & disclosure2

  • 1.
  • 2.  Celebrity gossip/chatter host on YouTube  Quit full time administrative assistant job  Revenue: $100,000+ yearly from YouTube  Costs: $2,000 camera + $6 backdrop
  • 3. Make money through advertisements on your videos  Clicks or every 1000 impressions
  • 4.  Monetize all videos  1,000+ subscribers & regular uploads  Video Views: $2.5 to $5 per 1000 views  Channel Views: $0.01 per channel view
  • 5.  Video: $2.4 million  Channel: $0.75 million  Total $3.15 million
  • 6. TubeMogul  Research and advertising agency Celebrity Revenue $ Shane Dawson 315,000 Annoying 288,000 Orange Ryan Higa 151,000 Fred 146,000 Smosh 113,000 Natalie Tran 101,000
  • 7. Banners & text ads  Google Adsense  Amount charged depends on: › Popularity/Visits › # of ads › # competitors › # interested advertisers › How much advertisers are willing to pay
  • 9. Companies gives products or money for recommendations
  • 10.
  • 11. Should they disclose they are getting paid? • Visible ads (YouTube/Blogs) that No recognizable by a reasonable Disclosure person • Hard to recognize ads that are biased (Recommendations) Disclosure • Federal Trade Commission requires disclosure People do not follow these rules!

Editor's Notes

  1. http://www.nytimes.com/2008/12/11/business/media/11youtube.html
  2. http://paigepiskin.com/social-media/how-much-do-youtube-partners-make
  3. http://www.youtube.com/user/michellephan
  4. Independent YouTube partners (not part of a brand or media company)Using $0.75 per thousand viewsJuly 2009 to July 2010http://www.businessinsider.com/meet-the-richest-independent-youtube-stars-2010-8#10-natalie-tran-101000-1
  5. He is an exception and others charge a lot less
  6. $10,000 per tweet  company limits1 tweet per day  $3.5 million a year
  7. YouTube Haulers Elle & Bair Fowler got paid $4,000 to conduct a product review on SunLove’s tan spryOverall, different celebrities make money in different ways and some make more money than others depending on how they can monetize what they do and the interests from companies
  8. Information which users have the choice to interpret and is not asked to click or purchaseHowever, misleading and biased information is created when celebrities have an incentive to recommend the products and thus should be disclosed  this is also required by the Federal Trade CommissionsBut, most people do not follow these rules. From companies to agencies, they are not telling the people that the payment should be disclosed.