YouTube is ignoring the traditional way TV ads are sold in the US (based on demographics) and is instead selling sponsorships of its channels. Depending on the channel, annual costs of such sponsorships are between $4-6 million. This may seem quite steep but the top five channels on YouTube get the same number of average daily viewers as the top five American cable channels.
YouTube believes it offers ‘targeted marketing opportunities’ and on the face of it, it does. YouTube channels have themes like Moms, Automotive and Young Hollywood. Moms is sponsored by Toyota, Young Hollywood is sponsored by Unilever and Automotive is sponsored by GM.
What’s good for independent producers is the way a YouTube channel can be built. If YouTube likes your idea it will give you an initial grant for production and will then split any profits from ad sales with you, the producer, after the first grant investment has been recouped.
Brands too can create YouTube channels to sell more products. Rather than being just dull, meaningless ad platforms though, brands have to think creatively. Monty Python, for example, has a great channel.

This is how to set up a YouTube channel.