In the world of online video, two platforms stand out as the giants: YouTube and Facebook. Both offer creators the ability to upload videos, build an audience, and monetize their content. However, there are some key differences between YouTube and Facebook when it comes to making money from videos.
YouTube Monetization
YouTube has a well-established Partner Program that allows creators to earn money from their videos. Once a channel hits 1,000 subscribers and 4,000 watch hours in the previous 12 months, they can apply to the YouTube Partner Program.
Here are the main ways creators can monetize videos on YouTube:
- AdSense revenue sharing – This includes video ads, overlay ads, and display ads placed by Google. Revenue is shared between YouTube and the creator.
- YouTube Premium revenue sharing – A portion of the subscription revenue is shared with creators whose content is watched by YouTube Premium subscribers.
- Super Chat & Super Stickers – Fans can pay to have their comments highlighted during live streams.
- Channel Memberships – Fans pay a monthly fee for special perks like custom emojis, badges, and exclusive content.
- Merchandise Shelf – Creators can showcase branded merchandise on their channel.
The main factor that determines how much money a creator can make on YouTube is their CPM rate. CPM stands for “cost per thousand” impressions and refers to how much advertisers pay YouTube each time an ad is displayed 1,000 times.
YouTube shares 55% of the ad revenue generated on a video with the creator. The exact CPM rate depends on factors like a creator’s audience, content type, and seasonality.
Here are some average YouTube CPM rates:
| Content Type | Average CPM |
|---|---|
| Gaming | $3 – $8 |
| Comedy | $2 – $7 |
| Fashion & Beauty | $6 – $10 |
| Finance | $25 – $35 |
As you can see, CPM rates can vary significantly depending on the type of content. Advertisers are willing to pay more to reach certain audiences.
Facebook Video Monetization
Monetizing videos on Facebook works very differently than YouTube. There is no dedicated partner program – anyone can start running video ads on their videos. However, to access monetization features, a Facebook page needs to have at least 10,000 lifetime followers.
Here are the main options for monetizing videos on Facebook:
- In-stream ads – Video ads play before, during or after a video. Revenue is generated when viewers watch the ad for at least 10 seconds or click on it.
- Instant Articles – Publishers can monetize videos in Instant Articles via in-stream ads. They keep 100% of the revenue.
- Native video ads – Videos ads appear in the News Feed. Revenue is generated when viewers watch for 10 seconds or click.
- Branded content – Companies pay creators directly to produce branded videos and promote products.
The monetization model for Facebook is based on impressions and clicks rather than watch time. Here are average earnings per 1,000 impressions or clicks:
| Ad Format | Average Earnings |
|---|---|
| In-stream ad impressions | $0.10 – $0.30 |
| In-stream ad clicks | $0.10 – $0.40 |
| Instant Article impressions | $1.00 – $5.00 |
| Instant Article clicks | $0.10 – $0.80 |
As you can see from the averages, monetized video views on Facebook tend to be much lower value than YouTube CPM rates. However, Facebook also offers far more potential reach.
YouTube vs. Facebook: Key Differences
Let’s summarize some of the key differences between YouTube vs. Facebook for video monetization:
- Platform purpose – YouTube is designed specifically for hosting videos, while Facebook is primarily a social network.
- Pay model – YouTube pays based on watch time, while Facebook pays for impressions and clicks.
- Content types – YouTube supports all types of video content. Facebook is geared more towards native social videos.
- Audience – YouTube has a dedicated audience visiting specifically to watch videos. Facebook reaches a broader social audience that often stumbles onto videos.
- Revenue potential – Top YouTube creators can generate significantly more income. Facebook offers greater reach but lower average earnings per view.
- Metrics – YouTube focuses on likes, comments, watch time, subscribers. Facebook looks at views, reach, shares.
Pros and Cons
Based on these differences, here is a comparison of the pros and cons of monetizing on YouTube vs. Facebook:
YouTube Pros
- Higher revenue potential per individual viewer
- Multiple ways to earn besides just ads (memberships, Super Chat etc.)
- Dedicated partner managers provide support
- Established path to building sustainable income as a full-time creator
YouTube Cons
- Harder to gain viewers and subscribers initially
- Strict monetization policies – videos can be demonetized for various reasons
- Can take months to get approved for the partner program
Facebook Pros
- Easier to reach a massive audience organically
- Start monetizing immediately without waiting for approval
- Ad formats seamlessly blend with the social experience
Facebook Cons
- Lower revenue potential per individual viewer
- Harder to build sustainable income compared to top YouTube creators
- More competition in the crowded News Feed
- Videos only monetize well when shared – hard to earn from uploads alone
Verdict: YouTube is Better for Top Creators, While Facebook Offers More Reach
In general, YouTube provides a better monetization model for creators who are able to consistently generate tens of thousands or hundreds of thousands of dedicated followers. The revenue sharing model rewards creators with higher CPM the more views they are able to drive.
Facebook can work well for supplemental income and reaching a wide audience with native social videos. But for creators focused solely on video content, it is very difficult to earn sustainable living revenue on Facebook alone.
That said, the best approach is often to leverage both platforms:
- Use YouTube as the hub for your channel, subscribers and loyal audience.
- Promote your YouTube videos strategically on Facebook to tap into viral reach.
- Experiment with short-form, made-for-mobile content on Facebook.
- Monetize views across both platforms for optimal revenue.
By combining the high revenue potential of YouTube with Facebook’s massive reach, creators can build thriving businesses around their video content.