Why MrBeast Learned That Ads Are NOT The Way To Monetize For The Long Term #2525

Marketing School - Digital Marketing and Online Marketing Tips

Eric Siu and Neil Patel

Careers, Business, Marketing

4.6 • 1.3K Ratings

🗓️ 3 August 2023

⏱️ 5 minutes

🔗️ Recording | iTunes | RSS

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Summary

In episode #2525, we discuss the lessons learned by MrBeast on why ads are not the ideal long-term monetization strategy. Join us as we analyze the journey of MrBeast, a prominent YouTube personality known for his philanthropy and attention-grabbing stunts. Discover the drawbacks of relying solely on ads for revenue and the potential limitations in scalability and sustainability. We explore alternative monetization methods that content creators like MrBeast have adopted to build a thriving and lasting income stream. Whether you are a content creator, entrepreneur, or marketer, this episode offers valuable insights into crafting effective monetization strategies for long-term success. Tune in and learn from MrBeast's experiences to optimize your business content for growth and sustainability. TIME-STAMPED SHOW NOTES: [00:00] Today’s topic: Why MrBeast Learned That Ads Are NOT The Way To Monetize For The Long Term. [00:20] How advertisers are making more money than you. [01:10] An alternative to ad revenue: providing products and services. [01:39] Why it is all about margins. [02:35] Leading with the audience first. [03:01] Short-term strategies for getting started. [03:26] Interesting findings from the Linktree Creator Report. [04:00] A key aspect to keep in mind. [04:20] That’s it for today! Don’t forget to rate, review, and subscribe! Go to https://www.marketingschool.io to learn more! Links Mentioned in Today’s Episode: Don’t forget to help us grow by subscribing and liking on YouTube! Check out MrBeast on YouTube Feastables ‘The 2022 Creator Report’ | Linktree Leave Some Feedback: What should we talk about next? Please let us know in the comments below Did you enjoy this episode? If so, please leave a short review. Connect with Us: Single Grain << Eric’s ad agency NP Digital << Neil’s ad agency Twitter @neilpatel Twitter @ericosiu

Transcript

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0:00.0	All right, so here's why Mr. Beast learned that ads are not the way to monetize for the long term
0:05.4	So wanted to share
0:07.4	Actually, this is a podcast that I was watching and he was talking about how he might get paid three four five million dollars for a video
0:13.7	Which is a lot of money and he might get hundred two hundred three hundred million views or so and
0:18.7	What he's realizing is for the two hundred three hundred four hundred million views just for some context here the Super Bowl
0:24.5	gets about a hundred fifteen million views or so it and
0:27.5	His videos are getting three hundred four hundred million now that's not apples to apples
0:30.6	That's necessarily we could talk about why that is in the second
0:33.2	But his justification is that he should be paid maybe ten million dollars per video or so and he's realizing that
0:39.8	Brands aren't willing to pay that and so if they're not willing to pay that
0:43.1	Then he should start to think about his own brand his own stuff, right?
0:46.9	Which is kind of what we talked about before when we talked about him advertising his own brand festivals in one of his videos
0:53.6	Which is his yacht video, which is one of his all-time best performers at the end of the day if someone's advertising on
1:00.4	Your guys his videos your website
1:03.4	social media
1:05.2	Typically if you continually get people to advertise they're making more money from your audience than you are the better option is to
1:13.4	Make money by selling your own products and services versus
1:18.5	Taking the other approach of just selling ads and again
1:21.4	If you don't want to build your own product and service nothing wrong with ads
1:24.9	But you'll make way more money from the concept of hey, let me go monetize a product and service versus selling other people's ads
1:33.9	When people buy ads from you on a consistent basis
1:36.6	It's typically because they're making a profit
	...

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