If you understand YouTube’s algorithm, you dramatically increase your chances of growing your channel and making money.
This will never change because the algorithm is built on one unchanging reality: human behaviour.
Every video view that happens on YouTube is a transaction between three parties:
- Viewer
- YouTube Advertisers
- Creator
Master this three-way relationship, and you unlock the secret to YouTube success. Ignore it, and you’ll always be guessing.
YouTube Algorithm: What It Really Wants
At its core, YouTube’s algorithm has one job (to keep viewers watching). The longer they stay, the more ads they see, and the more money YouTube makes.
But it’s not just about promoting popular videos. The algorithm is designed to:
- Maximise repeat viewership
- Serve relevant ads
- Satisfy viewers and advertisers
YouTube does this by constantly recommending videos that match each viewer’s interests. It’s all about showing the right video to the right person at the right time.
If you want to grow your channel or increase your YouTube RPM, you need to align with the system. Create content that viewers love and advertisers value.
1. Viewers Are the Top Priority
YouTube’s entire platform is built around one group (viewers). Without them, the platform is nothing.
But not all viewers want the same thing. Some are here to relax, clicking on a calming fern documentary to escape their busy day. Others want to learn, watching Alex Hormozi break down business strategies that can change their life.
Take a look at these videos below – who do you think watches them?
Like any good business, YouTube wants repeat customers (viewers). The algorithm’s job is to give each viewer a satisfying experience. The more effective it is at doing this, the more viewers return.
As a creator (if you want to succeed fast), your job is to understand your audience and feed the algorithm.
Ask yourself: What do my viewers actually want? Get that right, and you’re already winning.
2. YouTube’s Algorithm Wants to Make Money
YouTube is, at its heart, a business. No matter how much it promotes creativity, its primary goal is to turn a profit. To achieve this, it must balance the needs of viewers and advertisers.
From my experience, most creators spend years chasing views without realising that YouTube’s true currency is watch time (because it serves advertisers).
Viewers keep the platform alive, but advertisers are the ones who pay. They spend billions each year to reach new audiences, and YouTube’s algorithm ensures their ads reach the right people.
Not all ads are equal.
Different content attracts different types of advertisers, each with their own budgets and expectations. If we think of our previous examples, a relaxing fern documentary might attract general interest ads with low ad rates, while an educational business video draws high-paying financial advertisers.
Why? Because advertisers know that viewers of Hormozi’s content are likely business-minded and potentially high-spending, the perfect target for premium services and products. YouTube knows this too, which is why it carefully balances the types of content it promotes.
For creators, this means one simple truth: your content’s value to advertisers directly impacts your revenue (and reach).
Choosing the right niche can make a massive difference on multiple levels. It also means you must balance your content between what viewers love and what advertisers are willing to pay for if you want optimal results.
To give you an idea of how much advertising rates can fluctuate, the table below shares some rates taken from my own YouTube channel’s videos.
| Channel Niche | Sporting Entertainment | Financial Crime Stories | Finance Education |
| Income Per 1000 Views | $3.10 | $9 | $26 |
3. Creators Need YouTube, and YouTube Needs Creators
Creators produce the videos that attract viewers and generate revenue via the YouTube partner program.
But here’s a harsh truth: creators are not YouTube’s top priority.
Yes, YouTube needs creators. Without you, there would be no videos to watch. But make no mistake, YouTube values viewers and advertisers more. That’s the reality of its business model.
The more time watch time viewers consume, the more ads YouTube can serve. The more advertisers pay for those ads, the more profitable YouTube becomes. As a creator, you are part of this ecosystem, but you’re not at the top.
If you want to grow your channel’s subscribers fast, you need to work with this system, not against it.
This means:
- Create satisfying content – whether it’s educational, entertaining, or inspiring, your videos must capture attention and keep it.
- Be advertiser-friendly – avoid sensitive topics that trigger demonetization. Focus on niches where advertisers pay more (finance, business, tech).
- Understand YouTube’s goals – videos that hold attention and attract advertisers are rewarded. High watch time, strong retention, and valuable ad space are the keys.
Many creators waste time chasing hacks, clickbait, shady growth tricks, or short-term spikes. They get stuck in a cycle of trying to beat the algorithm instead of understanding it.
So stop trying to outsmart the platform! Just give YouTube what it wants, and you’ll get the same back.
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