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A part of the ad revenue is what helps the creators to earn money from both platforms.
However, there are some major Facebook YouTube ad revenue differences which we’ll discuss today.
In this post, we’ll shed light on the following topics:
- Ad revenue differences between Facebook and YouTube
- Important tips
Without further ado, let’s get started.
5 Differences Between Facebook’s and YouTube’s Ad Revenue
As we have already mentioned that Facebook’s and YouTube’s main revenue stream comes from running ads. Due to the similarity of the concept, the differences are easy to miss.
These differences can impact your overall earnings as a content creator on either platform. Moreover, the main difference lies in how each platform utilizes its ads.
Now, let’s discuss these differences in detail.
Types of Ads
The main difference between Facebook’s and YouTube’s ad systems is the variety. Facebook only uses one type of advertisement.
You might have come across many of them while scrolling through your Facebook feed. These are known as Bumper Ads. Here’s an example:
What sort of ads does YouTube use?
YouTube is more versatile when it comes to advertisements. It uses three different types of ads on its platform as a whole.
The first type is called True View Ads. These are the normal ads that you see while surfing on YouTube.
The second type is called Pre-Roll Ads. This type of advertisement is at the beginning, middle, or end of a YouTube video.
The third type is called Bumper Ads. Just like Facebook, these ads are usually present between two videos.
It doesn’t come off as a surprise that every advertiser wants to promote and increase the sales of their products/services. Conversion rate plays a huge role in it.
Naturally, an advertiser prefers a platform that can help reach, exposure, and sales. According to Facebook’s Business Page, their current CVR is at 9-10% for 2022.
What is the conversion rate for YouTube ads?
When it comes to conversion rates, YouTube doesn’t play by the rules. YouTube’s conversion rate depends on the size of your channel.
A channel with over a million subscribers has a better CVR than a channel with thousands of followers.
What is the ideal conversion rate for YouTube?
As a baseline, conversion rates above 20% are considered ideal. Channels like PewDiePie, Logan Paul, or H3H3 Productions have over 30% CVR.
Unlike Facebook’s CVR, the conversion rates for YouTube also change due to the popularity of a trend.
Another major difference between Facebook’s and YouTube’s ad revenue is how they pay content creators. Both platforms have different policies and practices.
Facebook pays its content creators based on the number of clicks. According to Business Insider, you can earn up to $8.75 per 1000 clicks.
On the other hand, YouTube pays based on the number of views. You can earn anywhere between $0.01 to $0.03 per ad view on your video.
Is the payout rate constant for every ad?
This is where things get interesting. YouTube’s algorithm automatically plays high-paying ads if you have a substantial number of views on your video.
To put it simply, you can earn anywhere between $3-$5 per 1000 views. It is lower compared to Facebook but at the same time, it is consistent.
Can I use the earnings anytime I want?
Facebook has a specific threshold you need to achieve before it allows money withdrawal. However, YouTube doesn’t have that sort of barrier.
You can easily use your earnings anytime you want from YouTube.
When it comes to online earnings, it is quite important to know where your money is coming from. It helps you focus and divert your resources to areas that need attention.
Facebook and YouTube have their in-house dashboards for such purposes. However, the difference lies in the detailed overview.
How are the dashboards different for Facebook and YouTube?
Facebook’s dashboard is simplified and easily accessible for an average user. Whereas, YouTube’s dashboard is detailed and shows every little aspect of your earnings.
YouTube tells you exactly how much earnings your account made through views and ads. Moreover, it also details how much YouTube took out as a fee.
Room to Grow
As we have mentioned already, you have multiple ways to earn from YouTube’s advertisement system. It’s multi-dimensional and has a lot of potential.
On the other hand, Facebook’s advertisement system is uni-dimensional. You can’t use it as a sole source of income.
How much can I earn from Facebook ads?
Earning from Facebook ads mainly depends on how often you post on your profile. A higher number of posts can land you high-paying ads.
On average, you can earn from hundreds to thousands of dollars. However, it is quite hard to get to this threshold because Facebook only uses a single type of advertisement.
How much can I earn from YouTube ads?
Youtube pays the content creators through ads and the number of views on every video. Per 1000 views, you can earn up to $30 from ads and views combined.
In comparison with Facebook, earnings from YouTube aren’t tied to a single source.
As a content creator, it is quite easy to grow on YouTube while also supporting yourself financially.
Important Tips to Keep in Mind
Now, let’s look at some of the important things you need to know about the ad revenue system of YouTube and Facebook. Let’s see what they are.
- YouTube is a content creator-oriented system while Facebook isn’t. If you want to use a social platform as a source of income, YouTube is a better option.
- YouTube’s customer support system is highly integrated to support basic and advanced problems. Whereas, Facebook lacks this option, especially for content creators.
- YouTube’s ad system earns you money from your old videos as well. On the other hand, Facebook only has ad rolls on your videos if they project consistent views.
- You also earn from YouTube as a live streamer. Facebook doesn’t pay its content creators for live streaming.
Wrapping Things Up…
This brings us to the finish line of our post on the key difference between Facebook and YouTube ad revenue. We hope this information proves to be beneficial for you.
Facebook and YouTube have their unique revenue systems. While YouTube’s revenue system is quite detailed, it also pays a substantial amount to support yourself financially.