Why Most YouTube Video Makers Struggle to Earn Money: Inside the Platform’s Monetization Woes

Why Most YouTube Video Makers Struggle to Earn Money: Inside the Platform’s Monetization Woes

RMN News Report Highlights:

• Many genuine video creators are earning nothing on YouTube due to issues like opaque algorithms and confusing policies, leading them to quit the platform.

• A high volume of “highly repulsive” advertisements is disturbing viewers, causing them to stop watching videos and develop dislike for advertised brands.

• The platform has a rampant problem with fake engagement, where creators buy artificial subscribers, views, and likes to appear popular.

• Some rogue creators profit from these fraudulent practices, while genuine creators who avoid trickery are unlikely to earn income.

By Rakesh Raman

A significant number of video content creators are failing to earn money from their YouTube channels, with many ultimately deciding to abandon the platform altogether.

Reasons cited for creators shutting down their channels include a lack of transparency in YouTube’s algorithm for prioritising content, ambiguous policies for hosting videos, and general confusion about monetization rules. The platform’s content management mechanism also lacks real-time interaction visibility for creators, with some videos showing no interaction metrics for extended periods.

This challenging environment means most YouTube channels earn nothing, or even larger channels fail to earn substantial income, prompting them to close or delete their content. An article in The Times of India highlighted the experience of a woman YouTuber who deleted all her content after three years and significant investment (lakhs of rupees) without earning a single penny.

She expressed frustration with YouTube’s opaque algorithm, which she felt unfairly favoured certain channels regardless of content quality. Following her failure to earn, she resorted to selling her studio equipment on Twitter after deleting her videos. Hundreds of thousands of other content creators are also reportedly leaving YouTube, with many believing it is not an effective platform for viewers, creators, or advertisers.

One major issue impacting the viewer experience and potentially creator earnings is the abundance of advertisements. An ongoing Raman Media Network (RMN) survey indicated that 82% of respondents never prefer seeing ads in YouTube videos.

While reliable data linking video ads directly to brand promotion is scarce, companies and individuals advertise based on budgets, leading to a competitive rush where intrusive ads disturb viewers. Many individual advertisers are described as naive regarding advertising and marketing techniques, but even some corporate advertisers push disturbing ads.

Almost all YouTube ads are deemed “highly repulsive,” and the platform reportedly lacks a mechanism to check ad quality. Such ads disrupt the viewing experience and can lead to consumer anger and dislike towards the brands or corporates advertising.

The RMN survey found that 84% of consumers felt disturbed by YouTube ads, and 76% stopped watching videos that displayed them. Alarming for brands, 80% of survey respondents revealed they develop a dislike for brands featured in YouTube ads.

It is suggested that YouTube’s need to show a high volume of ads may stem from stagnant ad revenues and pressure on profits, compelling the Google company to seek income aggressively. However, corporate brands may be hurting their own interests by placing “torturing ads” on the platform.

Another problematic aspect is the presence of a dubious advertising ecosystem where some rogue video creators profit from false popularity. These creators often use misleading thumbnails with striking photos to deceive viewers and artificially inflate their subscriber counts, views, likes, and comments.

Earning money on YouTube is partly based on video watch hours. To artificially boost watch hours and attract advertisers, many creators upload short videos in unending loops, a practice YouTube reportedly has no mechanism to punish.

Fake YouTube subscribers are openly available for purchase, often cheaper than everyday commodities, and can sometimes be obtained for free. Alongside subscribers, creators can also buy views, likes, and comments to deceptively gain popularity.

While YouTube has a “Fake engagement policy” aimed at preventing fraudulent practices, it does not appear to work effectively, with frauds remaining rampant. The policy prohibits anything that artificially increases metrics using automatic systems or by serving videos to unsuspecting viewers, and content solely designed to incentivise engagement is also banned. Channels violating this policy may be terminated.

Despite these warnings, video makers entice viewers and advertisers with flashy thumbnails and inflated metrics. Videos boasting millions of views or thousands of likes may, in fact, be “tasteless pieces of crudely made visuals that lack engaging content”.

Fake engagement is not just from purchased profiles; automated subscriber generators also exist, adding fictitious subscribers. Shockingly, some channels with this bogus engagement are earning money through ads. Some creators with fake followers even position themselves as social media influencers, potentially cheating companies that hire them for brand promotion. YouTube reportedly has no mechanism to detect or address this deception. Companies advertising on YouTube are advised to be cautious of this trickery.

The author personally observed the “craze” for some so-called YouTube influencers with millions of subscribers and views on seemingly ordinary videos. This contrasted sharply with their own efforts on a newly built channel, receiving hardly any viewers despite being an experienced content creator.

Further investigation via Google search revealed that YouTube, like other social media, is affected by significant deception, with fake engagement metrics readily available for purchase.

In conclusion, it is observed that earning substantial income from a YouTube channel may currently require engaging in fraudulent tricks. Genuine content creators who avoid such practices are likely to earn nothing and face the prospect of shutting down their channels, as many others are doing.

By Rakesh Raman, who is a national award-winning journalist and social activist. He is the founder of a humanitarian organization RMN Foundation which is working in diverse areas to help the disadvantaged and distressed people in the society.