Basically, whenever one of your viewers clicks on an ad on your YouTube channel or on one of your videos, you get paid a specific amount of money. Advertisers bid on the video ad space that you and other YouTubers provide in your monetized accounts. The highest bidder gets their advertisement showcased in a banner ad or pre-roll video on your videos or in the sidebar on your YouTube channel.
When one of your viewers clicks on a video ad, the company or individual behind the advertisement is charged, and you get a share of the money they pay Google to showcase it.
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