YouTube's swooping TikTok's $10B business

(2 min read) Twitch is having an Adpocalypse, top Creator leaks earnings data, YouTube wants to outearn TikTok, and Spotify’s new Creator program

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This week was full of developments in Creator monetization!

  • Twitch is having an Adpocalypse and top streamer Ludwig broke it down for us

  • Top Twitch streamer Nadeshot leaked his earnings (screenshot below) and metacreator Zach Bussey used it to figured out the formula for estimating ad earnings

  • YouTube is copying TikTok’s ridiculously lucrative (for Creators too!) in-app currency to monetize Live

  • Spotify launched a whole new Partner Program for Creators (podcasters, really) that monetizes from both ad revenue and paid subscribers

Before we get into it - if you’re looking for a quick and simple way to monetize your audience, check out this week’s sponsor, AsqMe.

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Ludwig breaks down Twitch’s Adpocalypse

Ludwig, one of the top streamers on the Internet, has a side hustle as a metacreator through his Mogul Mail YouTube channel. This past weekend, he dropped a banger of a YouTube video explaining the Adpocalypse that is happening right now on Twitch. If you do any streaming there, have thought of streaming there, or are just generally interested in understanding how advertising dynamics work on platforms, it’s worth watching (or listening to as you walk your dog, as I did.

Twitch Ad Revenue Breakdown Leak

Speaking of Twitch, a top Creator (Nadeshot) leaked their earnings and previous Creator Logic guest, Zach Bussey, used it to break down the math behind how to calculate potential ad revenue (Adpocalypse notwithstanding).

Here’s the equation to estimate ad earnings for a US-based Creator:

0.004 x Concurrent Viewers (CCV) x Hours Streamed x Minutes of Ads Per Hour = Earnings

I made a little calculator in case you’re interested!

YouTube eyes TikTok’s billion-dollar Live monetization strategy

Rumor has it that TikTok Live Creators are making a LOT of money from direct fan payments using their in-app currency, Coins. Considering TikTok was the first non-game app to cross $10 BILLION worth of in-app purchases (as of December 2023), it’s not surprising.

Now YouTube wants in on the action, and is launching Jewels - its own version of in-app currency that can be used to pay Creators (and YouTube) directly.

This is a great thing for anyone interested in livestreaming! Direct spending from fans is much more lucrative than ad-based revenue (though it also requires a lot more effort to garner). It will be interesting to see if YouTube’s algorithm dynamics and user behavior support spending the way TikTok’s does. Still, with TikTok’s Coins, Instagram’s Gifts, Twitch’s Bits, and now YouTube’s Jewels, it’s great that there will be more ways to monetize wherever you’re making content.

Spotify launches a new Partner Program for Creators

For a brief minute in time, Spotify beat out Apple as the top podcasting platform for Gen Z….

And then YouTube decided to get into podcasting and that was that.

Now Spotify wants revenge, and they’re planning to get it by doing something wonderful: paying Creators!

Spotify for Creators just launched a bunch of new features (check out the article). Most importantly, they have a new a two-pronged monetization system that pays based on ads run, as well as consumption by premium members without ads. It’s pretty opaque in terms of how payments are calculated, but it’s still a great sign that top platforms see the success YouTube has had from paying Creators and want in.

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Written by Avi Gandhi, edited by Melody Song,
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