YouTube: The Rise of the King of Video Platforms
The internet pursues efficiency — specifically the efficiency of information dissemination and even more so, the efficiency of monetization. When YouTube launched, it didn’t initially know how to monetize, so it experimented with many advertising models: small billboard ads, branded homepage placements, awards show sponsorships, product placements, and more. However, many of these models were difficult to scale quickly, which is a fatal flaw for an internet company. Eventually, it landed on its current ad serving system: programmatic advertising (auction-based ads).
To maintain healthy content development on the platform, YouTube retains 45% of ad revenue, while creators receive 55%. This ensures that creators who consistently produce high-quality content can earn satisfactory income — essentially allowing outstanding creators to make a living from the platform.