Corona outbreak is affecting the ad revenue of YouTubers and here’s some insight!

Due to the impact of Coronavirus on the economy, the majority of the businesses are reducing their ad spend and according to YouTubers, their ad revenue is reduced by more than 50% only in March.

So many top YouTube accounts with millions of subscribers are complaining about the impact of coronavirus on their earnings per thousand video views (CPM) and some of the top YouTubers are also reporting about a drop of more than 50% in the earnings on YouTube.

Well, if you take an insight on the effect of coronavirus on the economy you’ll realize that this outbreak is causing the majority of the businesses to either slow down or shut down completely in order to stop the spread of this virus and this is the reason behind the reduction in CPMs.

Statements by Top YouTube Accounts

The majority of the businesses are reducing their ad spend hence resulting in reduced CPMs on YouTube.

According to a YouTuber with more than 8,000 subscribers his account is facing a 70% reduction in its ad revenue and all this happened with the last two weeks of the corona outbreak.

A social media manager of animation channel with over 200,000 subscribers also reported about a downfall in their march CPMs.

Another top YouTubers with several million subscribers in various channels also informed us about the reduction of more than 30% in its average CPM rate across different channels and all within the month of March.

According to these YouTubers, usually, January is considered to be a month with lowest CPMs but this time the reduction of 30% and 50% CPMs in various accounts show that the month of March has the lowest CPMs as compared to other months.

Here’s why YouTube is demonetizing YouTube accounts

According to some YouTubers, the accounts are being demonetized with the mention of name coronavirus in their videos.

There’s no certain limit about the end date for the corona outbreak or the life of quarantine so everyone is uncertain about their businesses being able to fully operate and due to this many YouTubers will also be facing reduced CPMs for some time.

The data provided by an influencer marketing firm named Izea on sponsored post rates of past economic recessions during the period of December 2007 to June 2009 reveals some insight on how long will it take for creators to completely recover from these reduced CPMs.

The data of previous recessions reveals that the price per paid blog post was reduced around 45% during 2008 and 2009 and between 2009 and 2019 it was reduced further to 42% but later on during the years of 2010 and 2011 the CPMs started increasing and reached its highest rates between 2011 and 2012.

According to Izea, the impact of corona outbreak and quarantine could potentially cause the sponsored post rates to fall around 25% for a short-term period but this downfall gives a positive long-term outlook on the market and as the YouTube CPMs and sponsored post rates are not directly connected but they both indicate about the businesses spending on marketing and promotional activities which means that reduction in sponsored post rates always correlates with lower CPMs.

These reduced CPMs come during the time when YouTube made some changes in response to the coronavirus outbreak making it harder for independent creators to monetize and get views on their content as the social video streaming platform increased its promotion of media trustworthy outlets in search for recommendations for coronavirus content and YouTube is choosing itself to whether allow independent creators with the mention of the virus in their content or to demonetize their videos.

Read next: These YouTube Channels Will Help You Learn Something New During The COVID-19
Previous Post Next Post