Introduction

YouTube's monetization system and video ranking are often considered as separate elements, with the belief that enabling ads does not impact a video's position in search results. However, a critical examination of recent evidence reveals a correlation between monetization and video ranking, challenging this long-held assumption.

The Role of Audience Retention in Video Ranking

YouTube prioritizes videos that keep viewers engaged, which is measured by audience retention. The amount of a video that viewers watch is a key factor in how well a video ranks on the platform. This is because YouTube aims to keep viewers on the platform for as long as possible, as it makes revenue from ads. When viewers watch more of a video, it increases the likelihood that they will see and engage with ads, aligning with YouTube's revenue goals.

Data Points: Average View Rate: 31.9; Average Cost Per View (CPV) for In-Display Ads: 0.30; Average Cost Per View (CPV) for In-Search Ads: 0.10; Average View CTR: 0.514

YouTube Engineers’ Perspective vs. Creator Experiences

YouTube engineers maintain that the algorithm ranking videos does not consider whether ads are enabled or not. While this claim is widely accepted, a number of YouTubers, including myself, have observed a decrease in views when videos are demonetized and ads are not enabled. On my sports channel Fantasy Couch, I have noted a similar drop in views when my videos are demonetized due to misclassification.

In a case study by a well-known creator, Philip DeFranco, videos that are occasionally demonetized receive significantly fewer views. This discrepancy suggests that there may be factors linking monetization and video ranking that go beyond the official stance of YouTube's engineering team.

External Studies and Their Findings

Several external studies conducted by firms such as HubSpot and Animoto have shown that monetized videos have a better reach on YouTube search results compared to those that are not monetized. These findings indicate that enabling ads can positively influence a video's visibility and engagement metrics, ultimately boosting its ranking.

The data suggests that monetized content is more likely to be recommended in search results and liked by viewers. This is likely due to the increased interaction with ads, which keeps viewers on the platform longer and contributes to higher view rates.

Conclusion

While YouTube maintains that monetization does not directly impact video ranking, recent data and experiences from creators and external studies suggest otherwise. The correlation between monetization and video ranking highlights the importance of understanding how ads and engagement metrics are interconnected on the platform. As a result, enabling ads may not only boost revenue but also improve a video's overall performance and visibility on YouTube.