A Monetization Policy is applied to every Sound Recording on the YouTube Content ID system, and it is through telling YouTube which policy to apply for each of your Sound Recordings that we tell them what you want to happen when a video is uploaded to YouTube that contains one or more of your Sound Recordings.
There are three monetization policies available on YouTube:
• Block: the sound recording is not allowed to feature in a user-generated-video
• Track: the sound recording appears in videos, but no ads are served nor revenue generated
• Monetize: ads are served over any video containing the sound recording (exceptions may apply – see here)