for who?
Is the value that Google gets from one user having ads really that high?
Youtube Premium is only ~$10/month, does Google really make that much more with ads?
Is the value that Google gets from one user having ads really that high?
Youtube Premium is only ~$10/month, does Google really make that much more with ads?
Yes! Already their average per-user revenue was 21 USD per user per month in 2018 (couldn't find newer data) [0]. Furthermore, the first people to sign up would be the richest folks, those who are the most interesting to advertisers. Meaning: they are worth way more than 21 USD per month to Google.
To compensate, the price would have to be even higher. If only 5% of Google's userbase signed up, and those 5% are, on average, worth to Google 5 times as people from the general population, then you'd have to pay 100 USD per month for getting rid of ads across all Google products. That number would also have to grow at least as quickly as the ad revenue for it to make sense for Google to do it.
[0]: https://mondaynote.com/the-arpus-of-the-big-four-dwarf-every...
Money made with ads = how much advertisers pay
Money made with ads per user = how much advertisers pay / number of users.
If they average to... $10/user, then it's viable.
Once you remove a portion of those eyeballs, you might make more money short-term, but long-term you might end up in difficult conversations with large advertisers.