When your music is used in someone else's monetized video, advertising revenue from that video can flow to you through Content ID — here's the actual mechanics.
8.7.1 The claim policy that generates revenue
When a Content ID match is found, the rights holder chooses a policy: Monetize (ads run on the video, with revenue flowing to the rights holder — the standard policy for music), Track (data only, no revenue redirect), or Block. "Monetize" is the default and most common policy applied to music matches.
8.7.2 Claim types affect how much revenue you receive
8.7.3 The platform-level revenue split
YouTube's own commonly cited ad-revenue split for Content ID-monetized claims is approximately 80% to the rights holder and 20% retained by YouTube — this is the platform-level split before any Madverse distribution-agreement terms apply on top.
8.7.4 Multi-rights-holder situations
When more than one party has a valid claim on the same content — co-writes, cleared samples, features represented by different distributors — revenue is split according to the underlying agreements between those parties. If ownership is genuinely contested (for example, the same song mistakenly registered with more than one distributor), revenue goes into escrow until the conflict is resolved — see 8.2.1 on why registering a track in more than one place causes this.
8.7.5 Payment schedule
Content ID earnings flow into your Madverse royalty balance on the same schedule and through the same processing pipeline as standard streaming royalties — see 5.1 and 5.2.
Source: MadDesk article 8.7 (8-7)