YouTube channels earning six figures or more have increased by more than 40 per cent between 2018-19. Photo: StockPhoto

Working in wonderful world of YouTube

Friday, 24 July, 2020 - 09:00

It is difficult to remember a world without YouTube, so it may surprise you to learn the US-owned video-sharing platform has only been around for 15 years.

A year after its inception, it was bought out by Google for $US1.65 billion ($2.38 billion).

The site now has two billion active monthly users and has so far contributed 10 per cent to Google’s total revenue in 2020.

A reasonable return on equity by any standard. It’s not just Google winning from this. The content creators have benefitted hugely from advertising revenue.

For a surprising number of Western Australians, being a YouTube star is a full-time job. From make-up tutorials, wild Aussie humour, through to arts and craft – there are Perth vloggers that millions of viewers can’t get enough of.

How does a YouTuber make money?

A research report on the video platform says channels earning six figures or more have increased by more than 40 per cent between 2018-19. YouTubers get a share of the advertising revenue, split with YouTube and Google.

If someone sits through an advert, they get paid. If a viewer skips it or clicks out of it, the YouTuber still gets paid, just a smaller amount. Accummulate this over thousands, or millions of views, and this adds up.

Alen Catak is a 28 year old from Perth, better known by his subscribers as ChampChong, where he shares news and updates on all things gaming and technology.

Mr Catak is sitting at 910,000 subscribers to his channel and says, with a few million views each month, this adds up to a figure that enables him to comfortably do it as his main gig.

He said another revenue stream was based on sponsorships and brand deals, which carried across to social platforms such as Instagram and Twitter.

A lot of content creators end up producing their own branded merchandise, such as Perth man Robert Nixon, from Nicko’s Kitchen.

Mr Nixon is one of the originals, joining YouTube in 2006, and says he was the first person in Australia to “do” YouTube as a full-time job. He says he does not create recipes, but memories.

Speaking of his passion for cooking, Mr Nixon said: “I grew up in the kitchen with mum and nan creating wonderful dishes ... just watching everyone’s reaction to the joy of eating and socialising won me over.”

As well as working with large brands like Coles, Campbell’s and Breville, the online chef released his first cookbook a few years ago.

What does it take to be a YouTube sensation?

Like many big YouTubers, Mr Catak says he’s a one-man band, with complete creative control over what he shares.

He says he’s not just a gaming news reporter and entertainer, but also sources films, edits and does so much more behind the scenes.

Mr Nixon shares this approach, saying it takes a lot of hard work, dedication, passion and a sprinkle of luck.

“Too many people think success is all about the numbers,” he says.

“If you define your own success then you’ll be satisfied – not everyone is going to end up with millions of followers like me, but whatever you have, whether that’s 1,000 or 100, that’s 100 people who are invested in what you do and how you conduct yourself.

“So remain passionate and authentic, and growth will come.”

Perth personalities

Pop idol Troye Sivan started his music career filming himself singing from his parents’ home in Perth and uploading to fans on YouTube.

Sivan now has 7.21 million subscribers and a globally successful music career, working with artists like Ariana Grande.

He signed with EMI Australia in 2014, with his album TRXYE making its debut at number one on iTunes in 55 countries.

With more than one billion views on YouTube, Perth-based Ozzy Man Reviews has made his success from pure Aussie humour.

The channel features comedic commentary by the hilarious Ethan Marrell, dubbed over wildlife videos, sport clips and everything in between.

Despite YouTube being a catalyst for his success, Facebook has actually become another prominent platform for Mr Marrell, with nearly 10 million followers on his page.

Even fans of absurdist YouTube channel HowToBasic are often amazed to discover that this is another Perth-based claim to fame.

During COVID-19, the website, trading with a clever channel name, recorded a 195 per cent increase in searches containing ‘how to’.

A HowToBasic video often follows the format of a completely normal how-to video, such as ‘how to cook ramen’, ‘how to clean your dishes properly’ or ‘how to remove a computer virus’.

It usually follows with some element of chaos and complete destruction.

In the laptop example, it means taking a hammer to it, throwing eggs at it (a common feature in HowToBasic clips), putting it in water and then in a freezer.

It’s completely bizarre to watch, but this is apparently what works in the wonderful world of YouTube.

With 2.6 billion video views and 14.8 million subscribers, HowToBasic remains completely anonymous but was reported by Channel 9 News in 2013 as being run by a teenager.

To put that into perspective, the 25th biggest YouTuber has 22 million subscribers – that’s not bad for a 20-something-year-old, shooting videos out of WA.

Five billion hours of content is watched every day on YouTube and the company predicts 50 per cent of viewers under 32 will not subscribe to paid TV by 2025.

So whether you’re a business, an advertiser or a content creator – it’s worth keeping your eye on it.