Ever wonder how much ad revenue you can make by going viral on YouTube? Well the actual stats are disappointing, to say the least. As Digital Music News revealed, you’re not going to strike it rich by reaching a million views on YouTube. David Renzer, chairman & CEO of Universal Music Group Publishing, stated at the forum held by the Association of Independent Music Publishing (AIMP):
"For every 250,000 streams on YouTube, that is the equivalent of one credit of ASCAP performing rights value. One credit is less than $8, it's about $7.60. You do that math and it's pretty depressing, but that's the world we live in today, and it's causing a lot of consternation and a lot of discussion amongst the industry."
Between licensing and other ad revenue sharing plans, even bigger name artists will have a tough time monetizing YouTube videos. For most, it seems like the goal now is more about gaining exposure through YouTube than actually using it as a platform for making big bucks.
Even Rebecca Black, who has a billboard in Hollywood to celebrate her 100+ million YouTube views, is not a millionaire from her recent stroke of viral success. The 100+ million views will get her about $60,000 in ad revenue, but the majority of the money will come from iTunes and other digital sales.
Unless you’re Lady Gaga, Eminem, Justin Bieber, or the new Internet meme ala Rebecca Black, use YouTube as your promotional tool and not your get-rich-quick scheme.