Has your channel generated income lately? Are you logged into Youtube Analytics and immediately feel overwhelmed by vague terms like CPM, RPM and Runs?
Well, first of all - congratulations! (Or good luck on your journey, if your channel hasn't been monetized yet).
Understanding YouTube CPM and other monetization terms is an important part of YouTube's mission. This will help you assess the performance of your videos and find avenues for potential growth of your channel.
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In this guide, we will walk you through everything you need to know regarding Youtube CPM and earning advertising revenue on Youtube. So let's get started!
table of contents:
What is the cost per thousand impressions?
CPM is a marketing term meaning "cost per thousand miles". Mil is the Latin word meaning "thousand". This term is mostly used to show how much an advertiser will pay for 1,000 ad views.
What is YOUTUBE CPM?
When it comes to your Youtube channel, CPM on Youtube is the average cost that advertisers pay for 1000 views of their ad on your channel.
This number can help you understand your channel's estimated total earnings, as well as track the performance of specific videos based on their topics and audience interests.
However, it is important to understand that the CPM figure you see in your account is not your actual earnings. If you are looking to see your estimated revenue - you need to look at RPM.
What is RPM?
RPM stands for Revenue Per Thousand and it is the metric that Youtube uses to tell you how many views you actually get from your monetized videos.
Youtube takes 45% of the total CPM figures as its cutoff; RPM is the remaining 55% for you as the channel owner.
CPM is still an important metric for you, as RPM is directly related to it. A higher CPM equates to a higher RPM, which means you have more money in your pockets at the end of the day.
What is the CPM for my YOUTUBE channel?
In the past, finding the CPM for your channel required actual calculations on your part, but recently Youtube started displaying these stats directly on the dashboard.
To see your channel's current CPM rate:
Sign in to YouTube Creator Studio.
Head to the "Analytics" section in the left sidebar.
Inside the Analytics section, click on the Revenue tab.
The Revenue tab might be like this:
youtube earnings dashboard
As you can see, there are 3 numbers: Estimated earnings, RPM and CPM on an operating basis (which is the actual CPM, after removing unpaid offers).
HOW DOES YOUTUBE CPM WORK?
The CPM on Youtube depends entirely on the revenue you will make from the ads on your videos.
Earning advertising revenue with your monetization channel is very simple. After you insert ads into your video, you get paid for each monetized view - meaning that the viewer either watched an ad for its entire duration or either watched an ad or interacted with it for 30 seconds (by clicking on a link for example). CPM on Youtube is the average price you earn from 1000 paid views.
As a YouTube user, you have a lot of options to choose from when adding ads to your videos. The most common are Trueviews ads (more commonly known as skippable ads) and non-skippable bumper ads.
Deciding what kind of ads you want to place on your videos can affect your CPM rate significantly. Adding more non-skippable ads will increase it (you get paid for the ads shown) but on the other hand - it's likely to irritate some viewers and cause them to leave. This is a trade-off you should take into account.
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Promote your YOUTUBE video to an audience of millions for only $5!
Struggling to get YouTube views? Are you looking to take your YouTube channel to the next level?
On Fiverr, the world's leading online marketplace, you will be able to find thousands of professionals from all over the world, all looking forward to promoting your video to their audience.
These services will take care of all the steps needed to be successful, and help get your channel in front of the relevant users that will bring you closer to monetization.
Prices start at around $5 per promotion, so you better not waste it!
Check prices!
YouTube placements with the highest CPM rates
According to our research of over 100 different Youtube generic income reports, the top 5 Youtube CPM niches in 2022 are:
Affiliate Marketing
investment
drop shipping
Create content
taming