A young woman walks past a billboard advertisement for YouTube on October 5, 2018 in Berlin, Germany. In late 2016 and early 2017, YouTube creators who were in the Partner Program were hit by a sudden drop in advertising revenue as the platform struggled to contain disturbing children's videos and other harmful content.
Creators need to have at least 4,000 public watch hours in the last 12 months and over 1,000 subscribers on their channels to become eligible for the YouTube Partner Programme.
YouTube says the new move will boost the ad revenue it generates from music on the platform. It's hoped that these channels combined with the new audio ads will be enticing for brands to spend some money on.
According to the newest change in YouTube's terms of service, the company can now run ads on more videos without paying the creator as they are not big enough to be a part of YouTube's partner program.
"You grant to YouTube the right to monetize your Content on the Service (and such monetization may include displaying ads on or within Content or charging users a fee for access)".
"This agreement does not entitle you to any payments", the company added. There are an estimated 70+ million tracks and remixes on the video platform. It will be first implemented in the United States. YouTube will continue to evaluate brand safety on a video-by-video basis, a spokesperson said. And unless the channel owner is part of the monetization program, creators won't even receive a cut.
However, the decision will still have a major impact since it will affect the viewing experience of their followers.
Direct response ads on YouTube have prominent CTAs and a bidding system that allows direct response brands to target users more likely to take an action. They can check their eligibility on the monetisation tab in YouTube Studio.
Previously, ads only ran on content from creators within the YouTube Partner Program.
This seems like a double-kil scenario since it deprives the not-so-popular content makers from the revenue they should be entitled to.
YouTube's new changes are effective from Wednesday in the USA and from mid-2021 elsewhere. The change was also not received well by the YouTube community and numerous creators have took to social media and want the company to withdraw the change.