Nominees were chosen by taking into account the YouTube views, likes, comments and subscription figures for different artists.
The first ever YouTube awards have been held in New York, with actor Jason Schwartzman and musician Reggie Watts presiding over a frenetic ceremony.
As YouTube is a video-sharing site, the event featured Eminem, Lady Gaga and M.I.A making live music videos directed by the awards' creator, Spike Jonze, and others.
Eminem won Artist of the Year, while Taylor Swift's I Knew You Were Trouble took the YouTube Phenomenon award.
The ceremony was streamed live online.
Nominees were chosen by taking into account the YouTube views, likes, comments and subscription figures for different artists.
Indie actress Greta Gerwig kicked off proceedings at the sprawling Pier 36 venue, performing in a live video for Arcade Fire and their new song Afterlife.
Lady Gaga was up next, tears rolling down her cheeks as she performed her single Dope for the first time wearing a baseball cap and flannel shirt.
The coveted Video of the Year award went to South Korean group Girls' Generation for their song I Got A Boy, while Innovation of the Year went to DeStorm Power, the YouTube user whose 250 videos on the website have been watched more than 200 million times.
The inaugural YouTube awards reflect an increasing trend for people to turn to the internet, rather than television and radio, for music and video.
In August last year, the Nielsen rating agency published a survey in which 64% of American adolescents said they listened to music on YouTube, compared with 56% who listened to radio.
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