Running a YouTube channel doesn’t have to be only a hobby. It can also be a nice source of income! There are several ways of monetizing your content and finding the one that’s best for you is crucial!
In order to maximize the profits, you need to do a thorough research on everything related to making money on YouTube. A good way to start is by learning the basic YouTubers’ terms. One of the words you’re bound to come across pretty often is CPM!
What Does CPM Stand For on YouTube?
CPM is one of the basic stats in the world of YouTube advertising. It’s the one that’s super-important for advertisers, but knowing more about it can certainly benefit the creators as well.
CPM is actually an acronym, standing for “Cost per Mille”. The word “Mille” in this case refers to the Latin term for a thousand. In the world of YouTube, this basically means that CPM is the cost per one thousand views!
This is the amount of money the advertiser has to pay each time their advertisement reaches a thousand views. Note that the money goes to YouTube, not directly to the creator. In fact, YouTubers gets the money once YouTube takes their share!
The bad news is that YouTube Adsense takes quite a lot. You will probably be disappointed to hear that they take almost half of your earnings. But, this doesn’t mean that you should give up. There’s still plenty of money to be made, even with YouTube taking their cut.
How Much You Actually Make per 1,000 Views?
As already explained, CPM refers to the amount advertisers pay to YouTube for every 1,000 views of their advertisement. This raises the question – how much actually goes to the creator?
The amount the creators get from CPM is called RPM – Revenue per Mille! Still, this doesn’t mean that the creators shouldn’t care about CPM. On the contrary! The rule is simple – the higher the CPM, the higher the RPM!
Of course, even the highest CPM rate won’t do you any good, unless your videos are getting enough views. However, in order to get the most of it, it’s necessary to do your best to pump up the CPM. In order to see if that’s possible, first you need to calculate your current Cost per Mille!
Calculating Your Channel’s CPM
In order to calculate the value of CPM, you first need to calculate your channel’s RPM. Calculating the Revenue per Mille is a bit tricky, although not impossible. Actually, all you got to do is follow these steps:
- Check your monthly earnings! To do that, simply go to your AdSense account and click on “Payments” in the Settings section.
- See how many views your videos have received in the last month. To find that out, simply go to YouTube Analytics and take a look at the Monetized Playbacks (not on the number of views). In order to see the data for the previous month, just choose that option in the drop-down menu on the right side.The reason why you should take Monetized Playbacks into account is that not all of the views your videos get are monetized. In fact, a large percentage of them are not! For example, the views made on mobile devices are not monetized. The same goes for those made by the viewers who are using ad-blockers.
- Now it’s time to take the amount you earned in a month and divide it by the number of views your videos made in the same time period; then multiply it with 1,000. The number you get is your RPM!
For example, let’s say you earned $140 last month and the number of views on your channel for the same period was 40k. Here’s how you can calculate the RPM:
$140 ÷ 40,000 × 1,000 = 3.5
What this means is that you are earning $3.5 for every 1,000 views. If that number seems low, it shouldn’t bother you too much. In fact, that only means that there’s room for improvement. It’s time to start caring about how to boost that number!
Video Views vs. Monetized Views?
The truth is that the number of views is the most important factor when it comes to making money on YouTube. However, it’s not the only one! In fact, in the world of YouTube, the quality is equally important as quality.
What this means is that in some cases, more views does not mean more money. The number of Monetized Playbacks is what really counts!
So, at this point, you are probably wondering what counts as a Monetized Playback. Well, each time an ad is shown to a viewer, YouTube will add it to the number of Monetized Playbacks. But, the condition is that the viewer has actually seen the advertisement!
Basically, this means that if the viewer skips the ad that runs before a video, it won’t count as a monetized view!
On top of that, there are a few other reasons why your channel might not be getting enough Monetized Playbacks. For example, if you’re a newbie vlogger, your YouTube channel might not be interesting to the advertisers. If there’s no one willing to pay for your ad space, you won’t earn anything!
Furthermore, YouTube is also careful about the convenience of the viewers. They pay special attention to ruin their viewing experience by overloading the videos with ads. What this means is that if a user is watching multiple videos, they won’t be getting too many advertisements at once.
So, how are you supposed to increase the number of Monetized Playbacks? Unfortunately, there’s no ultimate answer to this question. However, there are some things you could try!
Common Reasons for Low Number of Monetized Playbacks
In most cases, the reason for the low number of monetized views is a bad job done by the channel’s owner.
If your channel doesn’t have enough views, you can’t expect to earn a lot of money out of it. But, sometimes, this is not the fault of the YouTuber. If your channel is new, you simply have to wait and work hard in order to see results.
Of course, even that might not be enough. You also need to make sure that the SEO is done properly. If the viewers can’t find your videos, your channel won’t get enough views – it’s simple as that!
But, even if your videos are being watched by a decent number of people, it still doesn’t necessarily mean that you’ll earn big money. Weak audience retention might be the cause of it!
The good news is that all of these issues can be solved. The bad news is that fixing them requires not only your time and energy, but also a lot of technical skills. Luckily for you, you’re at the right place! Our site is a great source of information that can help you learn how to run a successful YouTube channel!
Boosting the Number of Monetized Views
The key to increasing the number of monetized views is in improving the quality of your vlog. You can start by taking care of the search engine optimization. By using proper keywords in titles and descriptions of the videos you will be able to increase their visibility. The same principle applies to your channel’s description.
Speaking of the description, you need to match it to the content of videos. Some might think that writing false descriptions and using click-bait titles will bring more traffic, but that’s just not a good advice. The viewers you get will go away as soon as they realize they’ve been tricked.
Instead, you need to focus on making the content as interesting to the viewers as possible. Whether that means providing them with the information they seek or simply entertaining them, you need to do your very best.
By this, we mean that you need to eliminate every factor that could make the viewers bored with your videos. So, try to make them shorter and more dynamic. Another good idea is to use interesting locations for shooting your videos. Also, you could try experimenting with video editing, trying new angles, and adding background music.
All of this may help you gather a massive following, made of viewers who will come back to watch your videos again. By doing that, they’ll be presented with more adverts, which in turn, will increase the number of Monetized Playbacks.
Unfortunately, even if you manage to improve the number of monetized views, it still doesn’t have to mean that you’re gonna make a lot of money. Your channel’s revenue depends on another important factor – the location of your viewers!
YouTube CPM Rates
In order to ensure a high CPM (and RPM) rate, you need to target the audiences for whose views the advertisers are ready to pay a lot of money. This is something that differs from country to country, depending on a number of different factors.
Basically, the only thing that the advertisers worry about is whether their investment will pay off. That is why they will pay more money for the views coming from the countries with a large potential for their business.
Although this is something that depends a lot on the business niche, in general, some countries simply have higher YouTube AD rates.
The United States is the country that the advertisers focus the most. It’s not a surprise, given the fact that this is the world’s largest economy. On top of that, more than 50 percent of all Americans are using YouTube on a regular basis.
Average YouTube CPM Rates
At the moment, the Cost per Mille for the views coming from the United States of America is between 6 and 8 dollars. Rather surprisingly, the United States is not the country with the highest YouTube CPM. The United Arab Emirates tops the list with a CPM that’s 8% higher than the one of the USA.
Other countries with high CPM rates include: Canada, Australia, New Zealand, and the UK. For all of these countries, the estimated Cost per Mile is between 5 and 8 US dollars. The same amount is expected for the viewers located in Austria, Germany, Switzerland, and so on.
When it comes to the countries with the worst CPM rates, those include Serbia, Moldova, Ukraine, Liberia, and others. In fact, you can check the data by going to YouTube analytics. That’s the place where you can see the current CPM rates, but also the estimated number of monetized playbacks by county.
Other Factors that Determine Your Revenue
The Revenue per Month is something that doesn’t depend only on you, the creator, but the advertisers as well. That is why the RPM rates can differ quite a lot on a weekly basis. Here are some of the common factors that can have a strong impact on your channel’s revenue:
Some months simply aren’t great for YouTubers. The reason is that advertisers have less demand in certain parts of the year, such as the post-holiday season. After spending a lot of money on Christmas and New Year’s marketing campaigns, some advertisers need to take a break in January.
Type of Advertisement
Depending on their preferences, some advertisers may be ready to pay more for certain types of advertisements. For example, some of them might be interested in getting ad clicks, not just views.
Final Word of Advice
Running a YouTube vlog can be a lucrative business if you do your job right. Unfortunately, that implies investing a lot of time and work in making it successful. It’s not just enough creating good content, but you also need to pay attention to many other details, regardless of how insignificant they might seem.
One of them is the YouTube CPM rate, which can mean a real difference between a successful channel and one that’s destined for doom. Hopefully this article has helped you come up with a good CPM-boosting strategy!