Sponsor guide 101: How do YouTube sponsorships work?

November 22, 2024

As the creator economy grows, it's becoming more clear: the main monetization source for YouTubers is getting sponsored.

As a content creator, once you get your first sponsorship, it means you hit a significant milestone on your content creation journey. Not only helping you to financially support your content, it boosts you in credibility in front of other potential sponsors.

As a brand, influencer marketing opportunities on YouTube are endless, but the types of sponsorships you can do can vary, and it may be hard to find YouTube content that will actually get you a solid return on investment (ROI).

In this article, I'll tell you everything you need to know about securing YouTube sponsorships as a YouTuber, and what you need to know on the brand side to make sponsorships work on YouTube.

First things to know about YouTube Sponsorships

What Are YouTube Sponsorships and How Do They Work?

YouTube sponsorships are paid partnerships between brands and content creators where YouTubers promote products or services in their videos. These sponsored videos can take various forms, from dedicated product reviews to brief integrations within regular content called integrations.

Example: Ali Abdaal sponsored by Morning Brew

Sponsors pay YouTubers to reach their engaged audience and create authentic promotional content that resonates with viewers.

Types of YouTube Sponsorships

There are multiples types of sponsorships on YouTube:

Product Reviews: YouTubers and/or influencers making a review of a product or service.
Sponsored Videos and Branded Content: Creating content specifically for a paid sponsorship. This content can be an entire sponsored YouTube video, or it can also be a product placement within a video.
Long-term Paid Sponsorships: Receiving a fixed payment for featuring brand sponsorships regularly.
Affiliate Sponsorships: Earning commissions through affiliate marketing, aka affiliate links. Note that it is also possible for a creator do just sign up to a brand's affiliate program and get commissions without necessarily being sponsored by a brand.

How Much Do YouTube Sponsors Usually Pay?

The amount sponsors pay varies significantly based on several factors. Typically, YouTube sponsorships are priced using CPM (cost per thousand views), ranging from $20 to $70 per 1,000 views. For example, a channel with 100,000 views per video might earn between $2,000 and $7,000 per sponsored video. However, rates can vary based on your channel genre, audience demographics, and engagement levels.

If you want to get an estimate of how much a channel would charge for a sponsorship, you can use our free YouTube sponsorship calculator!

YouTube Sponsorship Calculator results for Ali Abdaal

This is the result for Ali Abdaal's channel for example ⬆️.

(For potential sponsors) The Business Side of YouTube Sponsorships

How Brands Choose Content Creators

Brands typically follow two main approaches when selecting creators:

1. Direct Outreach: Some brands contact creators directly, and bigger brands like NordVPN have a dedicated influencer partner program with a team that focuses on it.

2. Agency-Mediated: Most brands work through specialized agencies that:

Source appropriate creators
Handle negotiations
Manage campaign execution
Track performance metrics

The Role of Agencies

There are two types of agencies in the YouTube sponsorship ecosystem:

1. Brand Agencies:

Work on behalf of brands
Source multiple creators
Handle campaign coordination
Manage budgets and performance tracking

2. Creator Agencies (also called Talent Management Agencies):

Represent content creators
Handle contract negotiations
Manage sponsorship opportunities
Typically take 10-20% commission of sponsorship deals

Understanding Campaign Objectives

Brands typically have two main objectives when sponsoring content:

1. Consideration Campaigns:

Focus on brand awareness
Less emphasis on immediate sales
Long-term brand building
Common for established brands like Nike, Coca-Cola

2. Conversion Campaigns:

Focus on immediate results
Track specific metrics (sales, sign-ups)
ROI-driven approach
Common for digital products and services

If you want to learn more about the brand side and how to find influencers to sponsor, you can read this article.

(For creators) Preparing Your YouTube Channel for Sponsorships

1. Optimize Your Channel

Before you start cold e-mailing potential sponsors, make sure your YouTube channel looks professional:

Channel Trailer: Create a trailer for your videos that can help highlight what your channel is about.
YouTube Banner: Use a high-quality banner that represents your brand.
Content Consistency: Regularly upload high-quality videos, making you more reliable to the brand.
Video Content: Make sure that your content is engaging to a specific audience and relevant to your niche.

2. SEO and Social Media Integration

Always integrating YouTube SEO and social media links in video descriptions help you a lot on getting more reach and visibility. This includes:

Keyword Optimization: Use relevant keywords that your audience is likely to search for.
Social Media Links: Keep linking your social media profiles in your video descriptions, so your audience can find you on different platforms!

Building a Media Kit

A media kit is pretty much an essential to easily attracting sponsors. It should include:

Channel Statistics: Number of subscribers, average views per video, audience demographics.
Content Portfolio: Examples of your best videos, including at least one video that has performed well.
Sponsorship Packages: Different sponsorship models and pricing.
Contact Information: Make sure potential sponsors have a way of contacting you.

How to Reach Out to Brands

1. Identify Potential Sponsors

After a bit of research, make a list of brands that align with your YouTube channel's audience and niche. You can use tools and platforms that help you connect creators with brands, like Sponsorship.so!

2. Craft a Compelling Proposal

When reaching out:

Personalize Your Message: Mention why you think the brand is a good fit for your channel.
Present Your Value: Talk about your engaged audience and previous successful collaborations.
Include Your Media Kit: Attach all necessary information upfront to make it more appealing for sponsors to say yes.

If you want to dive deeper into the process to get sponsored on YouTube, I recommend reading this article.

Creating Sponsored Content

1. Disclosure and Transparency

Always disclose paid promotions to maintain trust with your audience. Use phrases like "This video is sponsored by...", or "thank you to... for helping me out on this project..." in your video.

2. Integrate Naturally

Ensure the sponsored content fits seamlessly into your regular content. The best sponsored videos feel authentic and not like an advertisement. Think about creative ways to make great transition between your content and the product/service.

3. Monitor Performance

Track the performance of your sponsored videos on YouTube Studio to provide feedback to your sponsors and improve future collaborations. Who knows, it might attract new brands!

Leveraging Smaller Channels

Don't get discouraged just because your channel doesn't have a huge audience. Even if you have a smaller channel, you can still attract sponsorships by focusing on:

Engaged Audience: Brands often value engagement over sheer subscriber numbers.
Niche Markets: Smaller, highly-targeted niches can be very attractive to brands.

Long-Term Sponsorships

Building long-term relationships with sponsors can be more stable:

Consistent Quality: Maintain high production values and consistent uploads.
Follow Up: Keep in touch with your sponsors and provide regular performance updates.

It's a big step from starting your YouTube game to actually getting to a regular sponsorship routine. By optimizing your channel, leveraging SEO, creating a compelling media kit, and reaching out to brands, I'm sure you can find great sponsorship opportunities on YouTube. The most valuable part is to make high quality, engaging content that not only your sponsors will love, your audience as well. There's so much more opportunities on Youtube to come, so get started today and hope you get your first Youtube sponsorship very soon.

FAQs

How much do YouTube sponsorships typically cost?
A: Sponsorship rates typically range from $20-70 per 1,000 views, with total costs varying from $3,000 for smaller channels to $10,000+ for larger channels.
Can small YouTube channels get sponsorships?
Yes, even smaller channels can secure sponsorships, especially if they have a highly engaged niche audience. Micro-influencers often offer great value for brands looking for targeted reach.
How long does a typical YouTube sponsorship campaign last?
Campaign duration can vary from a single video to long-term partnerships lasting months or even years. The length often depends on the campaign goals and the agreement between the brand and creator.
Are there any restrictions on what products can be sponsored on YouTube?
Yes, YouTube has guidelines restricting sponsorships for certain products, including tobacco, drugs, and weapons. Additionally, content aimed at children has stricter sponsorship regulations. Creators and brands should always review YouTube's current policies before entering into a sponsorship agreement.
What percentage do agencies typically take from sponsorship deals?
Reputable agencies typically take 10-20% commission, though some may charge more for additional services.
How can brands measure the ROI of YouTube sponsorships?
Brands can measure ROI through various metrics, including view counts, engagement rates, click-through rates, and conversion tracking. Many use unique promo codes or dedicated landing pages to track sales directly attributed to the sponsorship. Advanced analytics tools can also provide insights into brand lift and audience sentiment.

The Future of YouTube Sponsorships

As we look to the future, YouTube sponsorships are likely to become even more sophisticated and integrated into the content creation process.

Here are some trends to watch:

AI-Driven Matchmaking

Artificial intelligence and machine learning algorithms are increasingly being used to match brands with the most suitable creators. These technologies analyze vast amounts of data to predict partnership success rates, potentially revolutionizing how sponsorships are initiated.

Interactive Sponsored Content

With YouTube's expanding features, we can expect to see more interactive elements in sponsored content. This could include clickable product links within videos, augmented reality try-ons, or interactive polls and quizzes related to sponsored products.

Increased Transparency and Authenticity

With audiences becoming more savvy about sponsored content, there's a growing emphasis on transparency and authenticity. Successful sponsorships of the future will likely involve deeper, more genuine partnerships between brands and creators.

Cross-Platform Campaigns

Many YouTube creators have significant followings on other social media platforms. Future sponsorships may increasingly involve cross-platform campaigns that leverage a creator's entire online presence for maximum impact.