How does CPM work on YouTube
Money per 1,000 views: New metric especially for YouTube Creator
Anyone who earns their money as a creator with videos and live streams on YouTube can now build on various sources of income such as ads, channel membership, YouTube premium sales, super chat income and more. The creators use YouTube Analytics to analyze the performance of their own videos in terms of the revenue generated. There, the video platform is now introducing a new metric that shows YouTubers how much money they earn from 1,000 views of their videos. But the RPM (Revenue per Mille) must be viewed in a differentiated manner.
Understand YouTube advertising revenue better: RPM is usually lower than CPM
YouTube announced via Twitter that the RPM metric would be introduced for the creators on the platform. This makes the sales with 1,000 visits more transparent.
The RPM is the most holistic way to analyze and assess your own performance. With YouTube Analytics, however, YouTubers can view various metrics in order to analyze their advertising revenues, including the CPM. The estimated sales or the estimated advertising sales can also be tracked there, as can be seen from the corresponding YouTube help page.
YouTube also states there that the RPM is usually lower than the CPM, which is more relevant for advertisers. Because:
At theCPM it's about the cost of 1,000 ad impressions before deducting YouTube revenue sharing. TheRPM is the total revenue after deducting the YouTube revenue share per 1,000 views.
In addition, all calls, including those without monetization, are included in the RPM.
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Tips and advice on RPM and sales optimization
YouTube Creator can see more differences between RPM and CPM on Google's Support Blog:
In addition, YouTube provides tips on how to increase the RPM. Options such as activating monetization for all videos or all ad formats are mentioned as well as alternative monetization options such as channel membership or super chat. YouTube also recommends activating all positions for ads, e.g. enabling mid-roll ads.
However, the RPM does not provide any indication of how much money creators are making from merchandising sales or sponsorship payments through YouTube. And:
The RPM does not provide any indication of which source of income is responsible for fluctuations in your total sales.
Despite the high number of hits, the RPM could drop because ads were not activated everywhere. In order to keep an eye on such developments and to be able to better exploit the monetization potential on YouTube in the future, YouTube Analytics and the new RPM metric for YouTubers are always a good choice. Because an in-depth analysis of the performance can continuously improve it.
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