YouTube CPM
What Is YouTube CPM?
YouTube CPM, or Cost Per Mille, is a metric that measures how much advertisers pay for every 1,000 ad views on your videos. It’s a vital concept for YouTube creators because it directly impacts how much revenue you can earn through ads on your channel.
For example:
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If an advertiser pays $20 for 1,000 ad impressions, your CPM is $20.
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Keep in mind that YouTube keeps 45% of this amount, leaving you with 55% of the ad revenue.
CPM varies based on factors like your content’s niche, audience location, video type, and even the time of year. For instance, niches like finance and digital marketing typically have much higher CPMs than entertainment or music.
How to Calculate YouTube CPM
Calculating YouTube CPM is straightforward. Use this formula:
CPM = (Total Ad Revenue ÷ Total Monetized Ad Views) × 1,000
Example Calculation:
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Total Ad Revenue: $200
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Total Monetized Ad Views: 50,000
CPM = ($200 ÷ 50,000) × 1,000 = $4
It’s important to note that not all views on your channel generate revenue. Factors like ad blockers, viewer location, and content eligibility can reduce the number of monetized views.
YouTube CPM vs RPM: What’s The Difference?
While CPM is all about the cost advertisers pay for 1,000 ad views, RPM (Revenue Per Mille) reflects the actual revenue you earn for every 1,000 views on your channel. Think of it this way:
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CPM: Focuses on advertiser costs.
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RPM: Shows your net earnings after YouTube takes its 45% cut.
Formula to Calculate RPM:
RPM = (Total Revenue Earned ÷ Total Views) × 1,000
Why RPM is Lower:
Let’s say your video generates $10 CPM, and you get 10,000 views. After YouTube’s 45% cut:
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You receive 55% of the CPM revenue, leaving you with $5.50 for every $10.
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Your RPM would therefore be lower, as it reflects your final earnings after deductions.