well companies approach google to buy ads, they then bid against other companies to get prime adspace on well known channels for a good price, the ads then appear on peoples videos who have monetization enabled and if its a starting ad (skip in 5 secs) 1 complete playthrough is a click, or someone clicking on the ad is a click. Google has sophisticated software to see who is clicking, and at the end of each month google will pay you if the amount is over the threshold ($150 I think).
One Million Dollars for YouTube Channel
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