If you’re looking to start a career in content creation, you’ve probably heard that YouTube is one of the best platforms to do it. And it’s true. There’s no denying the power of YouTube.
With over 2.6 billion monthly users and 122 million active users daily, it’s no surprise that businesses and individuals alike are flocking to YouTube to establish their brands and make money.
But not all YouTube niches are equal. i.e., some are more profitable than others.
If you want to build a lucrative career on YouTube, you need to find a niche that not only aligns with your interests but also has good potential to generate serious cash.
And that’s why we’ve compiled a list of the 7 most profitable YouTube niches in 2023.
Whether you want to start a new channel or grow an existing channel, there’s something for you here.
Let’s get right into it!
Entertainment
People enjoy watching videos that make them laugh or fun content that give them a break from their daily lives, and YouTube provides a platform for video content creators to do just that.
With a broad range of entertaining topics and over 2 billion monthly active users on YouTube, it’s not hard to see why the entertainment niche is one of the most profitable niches on YouTube.
Cocomelon — Nursery Rhymes is one of the channels making waves in this niche, with 155 million subscribers and over 153.6 billion views.
This massive audience translates to high ad revenue, with an average CPM (cost per thousand views) of around $5 and an average RPM of $2.74.
The table below highlights the top YouTubers in this niche and details about their estimated monthly earnings:
Digital Marketing
HubSpot and Neil Patel are some of the leading YouTube channels in this niche.
With the rise of social media and e-commerce, more businesses are focusing on online marketing. Consequently, the demand for digital marketing content on YouTube is increasing.
From email marketing to Search Engine Optimization, social media management, and affiliate marketing, this niche has a high potential for monetization.
That’s not all...
Digital marketing channels have an average CPM rate of $12 — $22. In any case, here’s a look at other top creators in this niche.
Health and Fitness
The health and fitness niche on YouTube has exploded in recent years, and with the continuous rise of fitness enthusiasts, it's not slowing down anytime soon.
More people are becoming health-conscious; hence, there's a large demand for content around health and fitness, like diet plans, workout routines, yoga, and healthy eating habits.
Chloe Ting is a perfect example of a health and fitness channel making waves on YouTube, with over 24 million subscribers.
The average CPM for health and fitness YouTube channels is around $7-13.
If you can provide helpful health or fitness tips and inspiring content to help people meet their fitness goals, you can build a lucrative channel in this niche.
Check out other YouTubers making waves in this niche:
Beauty and Fashion
The beauty and fashion niche has always been popular on YouTube, so it’s no surprise that it has an average CPM rate of about $10!
Some of the most successful YouTube channels in this niche are bestdressed and Teachingmensfashion.
Their content ranges from beauty tips to makeup tutorials and fashion hauls.
The beauty and fashion niche is highly competitive, but if you can consistently produce engaging and unique content, the results will be massive in the long run.
Interested?
Take a glance at other prominent creators in this stellar niche.
How To Make Money Online
The "how to make money online" niche is centered around teaching people various strategies, tips, and tricks to earn money through online platforms.
Creators like Ali Abdaal and Franklin Emmanuel are great examples of people making waves in this niche.
What’s more?
This niche has a decent CPM of $13.52.
Here’s a table showing other leading channels in this niche:
Technology
New gadgets and software are released daily, and people are constantly looking for the greatest and best among them.
This is one of the things that makes the technology niche one of the most profitable YouTube niches, and it has enriched top channels like Unbox Therapy.
The tech niche has many sub-niches such as cars, phones, and cameras. So, the cost per thousand clicks varies.
For instance, a general tech channel can get a CPM of around $16-20, while car channels can get around $4.32 per a thousand clicks.
Below is a table displaying other notable creators in this niche.
Cooking
People love to eat, and this reflects in the popularity of cooking channels like Bon Appétit and Babish Culinary Universe on YouTube.
Cooking channels have a decent profit rate, with an average CPM of $2.50.
This niche is a little competitive, but if you bring your A-game to the table with stellar content like cooking recipes, cooking hacks, and kitchen techniques, you’ll have people flocking to your channel and coming back for more.
Sounds good, yh?
Here’s a peek at other creators making waves in this niche.
Factors That Determine Profitability of a YouTube Channel
YouTube is one of the most popular social media platforms in the world, and a go-to platform for video content creators, businesses, and individuals to showcase their skills and products.
With over 2.6 billion monthly users, YouTube offers a massive platform for whoever wants to make money from creating content. But profitability is often a major concern.
Well, like any other business, various factors determine how much profit a YouTube creator can generate. Here are some of them:
CPM (Cost Per Mille)
CPM is how much an advertiser pays for every 1,000 views of their advert.
For example, if a YouTube creator charges a $2 CPM rate, an advertiser that wants to display ads on their channel will pay $2 for every 1,000 views of their advert.
YouTube takes a percentage of this money (45%) as a commission; the rest goes to the creator.
CPM rates can vary, based on the advertiser, the type of ad, and the audience targeted. But generally, the higher the CPM rate, the more money a creator will make. Here's a guide on YouTube niches with highest CPMs.
RPM (Revenue Per Mille)
Revenue per mille is how much a creator earns for every 1,000 views of their videos.
RPM takes into account all revenue sources, including ad revenue, YouTube Red revenue, and Super Chat revenue, whereas CPM only considers ad revenue.
RPM is a more accurate measure of a YouTube creator's chances to generate income, as it accounts for all revenue streams.
Views
Another crucial factor that determines the profitability of a YouTube channel is the number of views. Views are the most basic measure of a YouTube channel's chances to succeed.
The more views a YouTube video receives, the more ad revenue it generates and the more likely it is to attract new subscribers.
However, views alone don't guarantee profitability. The engagement rate of a channel, e.g., likes, comments, shares, and retention rate (how long viewers watch the videos), also determine the profitability of a channel.
For instance, a video with many views and low engagements may have a low CPM rate and generate lower revenue. On the other hand, a video with a low number of views and a high engagement may have a high CPM rate and generate higher revenue.
Virality of Content
A channel's chances of going viral are difficult to predict, but they can determine how much money it makes.
A viral video can generate millions of views and ad revenue in a short period, but the chances of a video going viral are mostly outside of a creator's control.
Viral videos often happen by luck, timing, and other factors that are difficult to replicate.
Audience
If a YouTube creator has a large audience who like and engage with their content, they're more likely to make money by selling things with their name on them or getting sponsorships from companies.
Also, depending on the demographics (age, location, and interests) of people who like their content, the ads shown on their channel might be worth more money.
For instance, most views in the entertainment niche come from kids' content. games, top 10s, and DIYs. Consequently, channels that create kids' content, like Ryan's World, or gaming content, like GamingWithKev, make a lot of money in CPM and RPM.
The Bottom Line
While the above factors can increase a channel's chances of making money, success on YouTube takes more than just focusing on those factors.
Regardless of the niche you choose, quality content and consistency are vital for building a loyal audience and making a profit over the long haul.
So, choose your niche, grab your camera, and get ready to take the YouTube world by storm. Who knows? You might be the next big thing!
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