Video summary

YouTube Revenue is Dying

Main summary

Key takeaways

News and Commentary

Overview

A recent, large-scale study by Metric Tools suggests that YouTube monetization—especially for long-form videos—is declining, even as total views are rising. The analysis covers:

  • 799,718 videos
  • 71,177 channels
  • Multiple niches and channel sizes
  • A tracking window of roughly one year (February 2025 to February 2026)

The report also considers how newer AI-driven and Shorts-focused dynamics may be influencing performance.

Key findings and arguments

  • More views, less time watched

    • Long-form videos gained views: ~+76% year-over-year
    • But average view duration fell sharply: 3.98 minutes → 2.51 minutes (about -37%)

  • Engagement fell

    • Even though views increased, engagement weakened: interactions per view dropped substantially

  • Ad monetization weakened for long-form

    • Ad impressions per post: 976 → 475 (roughly halved)
    • Monetized playbacks (views with ads): 576 → 238 (dramatic drop)
    • Estimated ad revenue per post: $2.65 → $1.20
    • Estimated YouTube Premium revenue: $0.34 → $0.19

  • Why revenue can drop despite view growth

    • The decline is attributed mainly to less watch time
    • Shorter sessions reduce opportunities for mid-roll ads, lowering the chance of serving higher-value placements

  • Views and ad delivery appear decoupled

    • The study highlights a divergence where view growth doesn’t align with ad delivery trends
    • This could make it appear that view-focused optimization is working, even while monetization falls

Shorts dominance and implications

  • Shorts drive most total views

    • 61% of views come from the Shorts feed

  • Shorts viewing behavior may not translate to long-form revenue

    • Shorts engagement (including quick scrolling) counts as views
    • But it doesn’t necessarily support the same long-form advertising model

  • Implication

    • YouTube is becoming Shorts-dominated
    • As a result, long-form creators may earn less per view/time
    • This can make it harder for full-time creators to rely on long-form monetization

Notes on causation and measurement limits

  • The creator argues the study is likely credible due to:

    • Large sample size
    • Full-year scope

  • However, the study does not definitively prove the root cause, such as whether:

    • Changes are driven by YouTube’s ad systems, or
    • Differences come from audience or video mix

  • The report also notes that some views may receive no ads due to factors like:

    • Advertiser-friendliness
    • Ad availability

Creator perspective on RPM/CPM

  • The video discusses:

    • RPM (revenue per 1,000 views) — better for estimating creator earnings because it reflects creator revenue after platform revenue share
    • CPM (advertiser cost per 1,000 ad impressions)

  • The speaker claims their own RPM is declining, reinforcing concern about worsening conditions for long-form creators.

  • Earnings can vary widely by content category, with some genres typically earning higher RPM/CPM than others.

Broader outlook

  • Despite monetization concerns, the commentary suggests some smaller channels (2,000–10,000 subscribers) are still growing, indicating visibility and momentum may remain possible for newer creators.
  • However, the creator fears pressure on long-form ad revenue could eventually push some smaller creators out.
  • The video concludes with encouragement to continue pursuing growth, citing that meaningful results may require long time horizons.

Presenters / contributors

  • Unspecified video narrator/host (speaker)
  • Metric Tools (research organization behind the study)

Original video