How Much Is It to Sponsor a Youtuber
Find out how to calculate YouTube Influencer Rates and helpful tips for determining how much to charge for YouTube sponsorships.
How do you setup your influencer marketing pricing?
This is one of the important questions each YouTuber will ask themselves at some point.
As a YouTuber, you've probably given up on your career just to focus on your YouTube channel.
In this case, you want to earn the most from it.
But how?
How did PewDiePie and many other YouTubers become millionaires?
What is the procedure for getting your channel the attention of brands and making it a source of income?
These questions must have been dancing around your mind ever since you made a YouTube channel.
Well, worry no more!
We've conducted thorough research on influencer rates and done some YouTube sponsorship analysis.
Youtube influencer rates vary depending on the number of subscribers, the average views on videos, and the specific niche of a YouTube Channel. The length and type of advert will also determine the final price.
And come up with the simplest answer, along with a guide to help you in determining how to set up your YouTube sponsorship rates.
This way, you'll be a step ahead in your journey to making money on your videos!
So without further ado, let's get started!
Table of contents:
Introduction: What is CPM?
How much to charge for youtube sponsorships?
- The Formula Of How Much To Charge For A Sponsorship
- Determine What Is Your Channel Value
- Is your channel general or have a specific niche?
- How many subscribers do you have?
- What is your average video views?
Introduction To YouTube Sponsorships – What Is CPM?
If you have conducted any search about Youtube influencer rates, chances are you've encountered the word 'CPM'.
And you are wondering what this CPM is.
Here is the simplest answer!
CPM is the measuring unit used for advertisements.
Just like time is measured in seconds and distance in miles, modern-day advertisement is measured in 'Cost per Mile' (CPM).
It's basically the cost for every 1000 clicks or impressions on an advertisement.
In the world of YouTube, these impressions or clicks are in the form of ' views'.
So for a YouTuber, CPM simply means the amount they will be paid for every 1000 views on their advertisement video.
The simple formula to calculate the CPM for any YouTuber is:
CPM={cost of producing the video advert/total number of impressions }x 1000
In this formula, ' cost of producing the video advert' is the total cost that the advertisement requires.
It's like the price of the advertisement that you are offering.
And the number of impressions is the number of views that the YouTuber gets on their video.
The CPM varies for different brands and companies according to their budget for promotional campaigns.
The more views you get on your advertisement, the higher the CPM and the more the earnings!
The Formula of How Much To Charge For Sponsorship?
Now that we have covered the basic step of YouTube advertising, CPM, let's get to the actual part.
How much should you charge for YouTube sponsorship?
You might want to take out your calculators for this!
- First, analyze your latest 10 videos.
- Notice the view count and write down the number of views each video has received.
- Sum all the 10 numbers up.
- Divide the sum by 10.
- Viola! You have the average video views.
Here is an example to make things easier for you to understand:
| Video 1 | 10,030 |
| Video 2 | 12,968 |
| Video 3 | 7908 |
| Video 4 | 9874 |
| Video 5 | 10,234 |
| Video 6 | 8472 |
| Video 7 | 11,836 |
| Video 8 | 6820 |
| Video 9 | 9739 |
| Video 10 | 12, 003 |
Average Views=Sum of views of 10 videos 10
Total Views=99,884.1
Average Views= 99,884.1 : 10 = 9988.41
So according to the data in the table, the average views received on videos are 9988.41.
Now there are 2 types of advertisement which a YouTuber specifically highlights on their video:
- A shout-out advertisement, and
- A dedicated advertisement video
Both of these fall in the category of advertisement videos.
In a shout-out video, the YouTuber merely calls out the brand and talks about their product and aims to the viewers for about 20-30 seconds, and then the YouTuber switches back to the original theme of the video.
Since these advertisements run for a short period of time (merely a few seconds), the charges for them are relatively less.
But if a brand or a company is paying you good money, a shout-out would definitely not work for an advertisement and can cause you trouble!
In such cases, you need to make a complete lengthy video of a few minutes dedicated solely to the brand or company and their product.
Your entire video content should then revolve around the brand.
Generally, organizations pay Youtube influencer rates based on the average views on videos.
For instance, 10,000 views for a 20-30 seconds shout-out can earn you around $20 and around $300 for a completely dedicated video.
Apart from these advertisement videos, some other types are given below which also bring in some serious cash for YouTubers:
Skippable Advertisements:
As the name suggests, these advertisements are skippable. They are only paid for some specific time and after that, the viewer gets the option of skipping it. These advertisements can only bring you some money if they are played for 30 seconds at least.
Non-Skippable Advertisements:
Viewers have to watch these advertisements till the end, usually 15-20 seconds. Since they are not accompanied by the skip option, the influencer rates here are better and are guaranteed to be paid.
Bumper Advertisements:
They are also like the non-skippable ads but only play a maximum of 6 seconds.
Overlay Advertisements:
These are the advertisements that are featured throughout the video. Usually, their logo or image gets adhered to the screen.
Display Advertisements:
These types of Advertisements appear near the suggested list of videos.
Sponsored Cards:
These advertisements are like shout-outs which appear on the YouTuber's video. There is no chance for these advertisements to escape the eyes of the viewers and are also accompanied by a URL to provide speedy access to their site.
It is no secret that YouTube is a safe haven for brands and companies.
They can launch their promotional campaigns on Youtube and earn massive engagement on their product.
Organizations get in touch with the YouTubers with a high following.
The two sign up a contract and it ends in a huge profit for both the brand and the YouTuber.
Brands and companies usually search for a YouTuber who shares the same interest on their channel.
The Youtuber should also be extremely convincing to the audience.
YouTube and videos are the new faces of marketing today and both organizations and YouTubers are surely taking advantage of that!
Before you contact any brand or company that you are interested in partnering with, be prepared to highlight your price.
Your influencer rates are not something that you can just say out of thin air.
You need to do homework before you demand any price.
By homework, we literally mean some mathematics!
The formula below can help you to get an exact price that you should state in your collaboration contract.
Price for an advertisement= Average Views on a Video1000 x CPM
Before calculating the price using the formula, you need to calculate your CPM first.
The CPM will be the amount you would like to be paid for every 1000 views.
You can round off the answer to the nearest value and highlight it in your contract.
Of course, there should always be room for some negotiations.
After stating your influencer rates, arrange for a meeting with the relevant department in the organization to craft out an agreeable deal with them.
The market is full of promotional campaigns for YouTubers that you can apply to!
So just have faith in your content and your calculator, and start applying!
Determine What Is Your Channel Value
Before contacting organizations, determine the value of your channel.
This part requires some serious research!
You already know the theme of your YouTube channel; your niche and video content.
Now, you need to hunt down the brands sharing similar interests with you.
You may conduct an analysis for channel's value in 3 steps.
Step # 1 Is Your Channel General or a Specific Niche?
Determine whether your YouTube channel is a generic one or is solely dedicated to a specific niche.
Brands and companies tend to shortlist YouTube channels with a very specific and narrow niche.
This makes it easier for brands and companies to reach their target audience.
Similarly, brands and organizations tend to generally avoid those YouTube channels which are pretty much generic.
This is because those channels have a wide set of audiences with varying interests.
They can't promise a lot of engagement from the targeted audience.
But niche-specific channels sure will!
For example, if your channel is about fitness and all your channel's content revolves around fitness and sports, then it is most likely that the sportswear brand Adidas will prefer your channel for their promotional campaign, over the channel of a lifestyle vlogger (whose content varies from fitness to cooking and to makeup).
Similarly, Huda Beauty would rather contact a YouTubers whose channel is all about makeup then contacting the YouTuber whose channel is about makeup and clothes.
So you definitely need to do some research to verify that you and your potential brand share the same type of target audience.
Step #2 Subscribers Check
Before taking the big step and making sponsorship deals, check your subscribers and their activity.
Brands and companies will only show their interest in your channel if you have a promising audience.
The first thing to work on is boosting your subscriber count.
After all, your subscribers are the confirmed audience that the brand or company would be receiving on their promotional message.
So, boosting their number should be your top priority.
We have already discussed in-depth how you can lure in more subscribers with your creative and innovative content here.
One thing to note is that having a high following or a huge number of subscribers is not the only eye-catchy thing for organizations.
Brands and companies are investing a good amount of money on your channel so they obviously expect some promising results.
Not only you should focus on boosting your subscriber count but also on ways of engaging them.
The way your subscribers react to your videos, their comments, and their queries about the products that you are showing determine how brands respond to your proposal to work with them.
If you have a growing subscriber count and loyal engaging audience, your channel will be attractive to brands and organizations!
Step # 3 Average Views on Videos
The average views on your videos is another factor that will attract brands to your channel.
Sure, your subscribers are the prospective audience on any advertisement video.
But organizations need to know the precise number that will actually view their promotional content.
And if you are charging influencer rates, it should be commensurate to the views.
Their major goal is to reach out to as many people as they could to expand their customer circumference.
So for that purpose, organizations also analyze your average views before signing any contract.
Whenever you upload a YouTube video, it is bound to reach the eyes of millions around the globe.
Some would like and subscribe.
Others give you a chance some other day.
Nonetheless, both the categories of the audience will increase the view count on your video, thus making your video engaging.
The view count guarantees that your content is promising enough to reach out to a wide audience across the globe.
So it's completely natural for brands and companies to inquire about the view count on your channel before making any deal.
Wrapping Up
There you have the tips and tricks for setting your Youtube influencer rates.
Set yourself up for success even before you go out looking for sponsors for your YouTube channel.
We hope this was helpful and will ensure you greater earnings from your channel!
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Eisha Gul
Eisha Gul is a part of Weshare's writing team. She has social media marketing experience for over 4 years and has been writing in-depth guides and articles about the industry ever since.
How Much Is It to Sponsor a Youtuber
Source: https://www.weshare.net/influencer-rates-how-much-to-charge-for-youtube-sponsorship/
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