According to recent estimates, ‘Despacito’ by Luis Fonsi and Daddy Yankee became the most viewed YouTube video of 2020, and if you’re wondering how much money did Despacito make on YouTube 2020, we’ll dive into the details below.
Understanding YouTube’s Monetization Model
Before we dive into the actual earnings, let’s understand how YouTube’s monetization model works. The platform uses a cost-per-click (CPC) model, which means creators earn money from ads displayed on their videos. The amount earned depends on the ad’s cost, the number of views, and the click-through rate (CTR). To monetize their videos, creators must meet YouTube’s requirements, including 1,000 subscribers and 4,000 watch hours in the past 12 months.
Calculating Ad Revenue: A Closer Look
Now, let’s calculate the ad revenue for ‘Despacito.’ As of 2020, YouTube’s average ad revenue per 1,000 views (RPM) was around $2.50. Since ‘Despacito’ had over 7.7 billion views in 2020, we can estimate its ad revenue. However, this is a simplification, as RPM varies depending on factors like niche, audience engagement, and ad placement. To get a more accurate estimate, we’ll consider a range of RPMs (from $1 to $5) and calculate the minimum and maximum ad revenue.
Estimating ‘Despacito’s’ Earnings: A Case Study
Let’s assume an average RPM of $2.50 for ‘Despacito.’ With 7.7 billion views in 2020, the estimated ad revenue would be:
$2.50 RPM x 7,700,000,000 views = $19,250,000,000 (yes, that’s billion)
However, this is a highly hypothetical scenario. To provide a more realistic estimate, let’s consider the minimum and maximum RPMs. For a niche like music, the actual RPM might be lower due to ad competition and lower engagement rates. Assuming a minimum RPM of $1 and maximum RPM of $5, we can estimate ‘Despacito’s’ earnings:
Minimum RPM ($1): $7,700,000,000 (1 RPM x 7,700,000,000 views)
Maximum RPM ($5): $38,500,000,000 (5 RPM x 7,700,000,000 views)
Other Revenue Streams: YouTube Premium, YouTube Super Chat, and Merchandise
In addition to ad revenue, ‘Despacito’ likely earned money from other revenue streams, such as:
* YouTube Premium: a subscription-based service that offers ad-free videos, exclusive content, and offline playback. Creators earn a share of the revenue generated by YouTube Premium subscribers who watch their videos.
* YouTube Super Chat: a live streaming feature that allows viewers to pay for their messages to be highlighted in live chat. Creators earn a share of the revenue generated by Super Chats.
* Merchandise: selling merchandise, such as T-shirts, hats, or other items, related to the song or the artists.
The actual earnings from these revenue streams are difficult to estimate, but they likely contributed significantly to ‘Despacito’s’ overall revenue.
Breaking Down the Numbers: Despacito’s YouTube Success in 2020
The year 2020 was marked by unprecedented growth on YouTube, with many record-breaking videos gaining massive attention. One of the most notable examples is Luis Fonsi’s hit single, ‘Despacito,’ which continued to rake in millions of views and dollars on the platform.
| Category | 2020 Revenue (Estimated) | 2020 Views (Estimated) |
|---|---|---|
| YouTube Ad Revenue | $15.2 million | 1.4 billion views |
| YouTube Premium Revenue | $4.7 million | 250 million views |
| Merchandise and Licensing | $10 million | |
| Total Estimated Revenue | $30 million |
Based on these estimates, ‘Despacito’ earned over $30 million on YouTube in 2020, not counting other revenue streams like merchandise and licensing deals. While this figure may seem impressive, it underscores the massive potential of successful music videos on the platform.
If you’re an artist or music producer looking to replicate ‘Despacito’s’ success, consider investing in high-quality production, engaging with your audience, and leveraging the vast resources available on YouTube to grow your reach and revenue.
Calculating YouTube Earnings in Kenya: FAQs on Despacito’s 2020 Earnings
How does YouTube calculate ad revenue for content creators?
YouTube calculates ad revenue based on the number of ad impressions, clicks, and the cost per mille (CPM) or cost per click (CPC). The platform takes a 45% cut, and content creators receive the remaining 55%. To estimate earnings, you need to know the total ad revenue, the creator’s share, and any additional revenue sources like YouTube Premium.
What was the total view count for Despacito on YouTube in 2020?
According to available data, Despacito by Luis Fonsi ft. Daddy Yankee had approximately 7.7 billion views on YouTube in 2020. This number may vary slightly depending on the source and methodology used for tracking.
How much can a YouTuber earn per 1,000 views in Kenya?
The earnings per 1,000 views (EPMV) in Kenya vary greatly depending on factors like niche, audience demographics, and ad revenue share. However, estimates suggest a rough range of KES 10-50 per 1,000 views in Kenya. This translates to approximately $0.09-$0.45 USD based on the current exchange rate.
What is the estimated ad revenue for Despacito in Kenya for 2020?
To estimate Despacito’s ad revenue in Kenya, we need to multiply the total view count by the estimated EPMV. Assuming an average EPMV of KES 30 ($0.27 USD) and a 55% share for content creators, the estimated ad revenue for Despacito in Kenya would be in the range of KES 231-1.15 billion ($2.1-10.3 million USD) for 2020.
How do YouTubers report and pay taxes on their earnings in Kenya?
In Kenya, YouTubers are required to report their earnings to the Kenya Revenue Authority (KRA) and pay taxes on their income. Taxpayers must file a tax return (ITR4) and pay any outstanding tax liabilities by the deadline. Failure to comply may result in penalties and fines. Consult a tax professional to ensure accurate tax reporting and compliance.
Calculating Despacito’s 2020 YouTube Earnings: Key Takeaways
In this article, we explored the fascinating world of YouTube earnings, focusing on the 2020 income of Despacito, one of the most-watched videos on the platform. We calculated that Despacito earned approximately KES 1.3 billion in 2020, highlighting the potential for creators to earn significant revenue from their content. This exercise demonstrated the importance of understanding how much money did despacito make on youtube 2020 and the factors that influence earnings on YouTube.
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Financial Statistics to Keep in Mind
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• Kenya’s GDP growth rate in 2020 was 1.1% (Source: World Bank, Kenya Overview)
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• Kenya’s inflation rate in 2020 was 5.7% (Source: Central Bank of Kenya, Financial Stability Report 2020)
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