Guide
YouTubeAd RevenueBeginnersAdSenseYouTube Ad Revenue Explained for Beginners: How You Actually Get Paid
If you're new to YouTube and confused about how creators actually make money from ads, this guide explains everything in simple terms — from how ads appear on your videos to when the money hits your bank account.
Last updated: February 25, 2026
Step-by-Step Guide
Create content and grow to 1,000 subscribers
Focus on a specific niche and post consistently. Use Shorts to accelerate subscriber growth — they're the fastest way to build an audience.
Reach 4,000 watch hours or 10M Shorts views
Create longer videos (8-15 minutes) to accumulate watch hours. Alternatively, focus on Shorts to reach the 10 million views threshold.
Apply for YouTube Partner Program
Go to YouTube Studio → Monetization → Apply. The review typically takes 1-4 weeks. Ensure your channel has no community guideline strikes.
Set up AdSense and verify identity
Link your AdSense account, add PAN card details, verify your mailing address via PIN, and add your bank account for payments.
Enable ads on all eligible videos
Turn on monetization for all videos. For videos 8+ minutes, enable mid-roll ads. Check YouTube Studio regularly to track your revenue growth.
How YouTube ads generate money for you
Here's the simple version of how YouTube ad revenue works:
1. You upload a video on your monetized channel
2. YouTube places ads on your video (before, during, or after)
3. Viewers see the ads — YouTube charges advertisers for each impression or click
4. YouTube takes 45% of the ad revenue
5. You get 55% deposited into your AdSense account
6. AdSense pays you monthly via bank transfer
Types of YouTube ads:
- Skippable video ads — Viewer can skip after 5 seconds. You earn if they watch 30+ seconds or click.
- Non-skippable ads — 15-20 second ads that can't be skipped. You earn for every impression.
- Bumper ads — 6-second non-skippable ads. Lower revenue per impression.
- Display ads — Banner ads beside the video (desktop only). Lower revenue.
- Overlay ads — Semi-transparent ads at the bottom of the video.
Mid-roll ads (available for 8+ minute videos) are the most valuable because they appear during the video when the viewer is already engaged.
Key terms every creator must understand
CPM (Cost Per Mille): What advertisers pay YouTube per 1,000 ad impressions. Range in India: ₹10-250 depending on niche.
RPM (Revenue Per Mille): What you actually earn per 1,000 video views. Always lower than CPM because:
- YouTube takes 45%
- Not every view generates an ad impression
- Some viewers use ad blockers
CTR (Click-Through Rate): Percentage of ad viewers who click on the ad. Higher CTR = more revenue for you.
Ad Impressions: The number of times ads are actually shown on your videos. This is always less than your total views.
Estimated Revenue: YouTube Studio shows this in real-time. It's approximate and finalizes after 2-3 days.
AdSense: Google's payment platform. Your YouTube earnings are deposited here, and AdSense sends money to your bank account.
Practical example:
Your video gets 100,000 views. About 60,000 of those generate ad impressions (60% fill rate). Your niche CPM is ₹60. YouTube's share is 45%.
- Advertiser pays: 60,000 ÷ 1,000 × ₹60 = ₹3,600
- YouTube takes: ₹3,600 × 45% = ₹1,620
- You earn: ₹3,600 - ₹1,620 = ₹1,980
- Your effective RPM: ₹1,980 ÷ 100 = ₹19.80 per 1,000 views
YouTube Partner Program requirements in India
To earn ad revenue, you must be accepted into the YouTube Partner Program (YPP). There are two tiers:
Standard YPP (full ad revenue):
- 1,000 subscribers AND
- 4,000 watch hours in the past 12 months OR 10 million Shorts views in 90 days
- Clean channel standing (no strikes)
- AdSense account linked
- Must be 18+ (or have a legal guardian)
Expanded YPP (limited features):
- 500 subscribers AND
- 3,000 watch hours in 12 months OR 3 million Shorts views in 90 days
- Gives access to Super Chat, Super Thanks, and channel memberships — but NOT ad revenue
Timeline expectations for Indian creators:
- Getting 1,000 subscribers: 3-12 months (varies hugely)
- Getting 4,000 watch hours: Often the harder milestone
- YPP review process: 1-4 weeks after applying
- First payment: 2-3 months after acceptance (need to hit $100 minimum)
Pro tip: Creating Shorts with FluxNote can help you reach the 10 million Shorts views threshold faster, which is often easier than accumulating 4,000 watch hours for new channels.
When and how YouTube pays Indian creators
Payment schedule:
- Revenue finalizes around the 10th-12th of the following month
- Payment is issued between the 21st-26th if you've hit the $100 threshold
- Example: January earnings finalize by Feb 12, payment hits your bank by Feb 26
Payment method in India:
- Bank transfer (EFT) to Indian bank accounts
- YouTube pays in USD, AdSense converts to INR at the day's exchange rate
- No PayPal or cheque option — bank transfer only
Setting up AdSense for India:
1. Apply from YouTube Studio → Monetization
2. Create/link an AdSense account with your PAN card
3. Verify your address (Google sends a PIN by mail — takes 2-4 weeks)
4. Add your bank account details (any Indian savings account works)
5. Once verified, payments are automatic
Tax implications:
- YouTube earnings are taxable income in India
- Falls under "Income from Other Sources" or "Business Income"
- TDS of 1% may apply on payments above ₹50,000/year
- GST registration required if annual income exceeds ₹20 lakh
- Maintain records of all YouTube earnings for ITR filing
Pro Tips
- Not all views generate ad revenue — typically 50-70% of views result in an ad impression
- Ad blockers reduce your earnings — encourage mobile viewing where ad blockers are less common
- Your first AdSense payment may take 3-4 months because you need to accumulate $100 minimum
- Keep your PAN card and bank details updated in AdSense to avoid payment delays
- Enable all ad formats for maximum revenue — some creators accidentally leave ad types disabled