YouTube is among the online channels people and companies can use to make an income. This is through measures such as running ads, promoting businesses, among other creative means that users can develop to offer services and make an income from their offerings. This article will look into the CPM in YouTube, its basics, and how countries perform on the scale.
What is YouTube CPM?
CPM – Cost Per Mile refers to the amount of money advertisers pay YouTube channel owners for every thousand ad views. The term borrows from mile which is translated to 1000.
On YouTube, the CPM refers to how much advertisers are going to pay you for showing their ads on your content per every 1000 views. This might sound simple, but it goes a step further before the money can start streaming into your account.
YouTube RPM Explained
RPM is Revenue Per Mile, the actual metric that will show the YouTube channel owner the exact figure/income/revenue they make from videos that have ads running. This is important as it is the determining factor that one should have in mind when creating content, analyzing strategic moves to take towards promotion and other factors.
To calculate the YouTube RPM achieved on your channel which is what is your earning per mile/thousand views; the ratio is 45:55 (YouTube takes 45% of the total CPM figure and the channel owner retains 55% which is the RPM).
How to Build your Channel’s RPM
To achieve a high Revenue Per Mile on your channel, you need to first be a great quality content producer for your identified niche. Identifying a niche that you can entertain, educate, inspire, or inform is key as this gives a compass direction on the nature of the material to produce for your viewers.
Next is to create good quality content that can hook viewers to your channel for a long time without getting bored. This allows for you to put up ads mid-viewing that will in turn increase your CPM.
To monetize your videos, make use of ads. These can be non-skippable bumper ads and trueviews ads. Non-skippable bumper ads cannot be skipped before proceeding with the video while trueviews ads can be skipped after a five-second viewing. Trueviews ads are more popular since they allow viewers to proceed with the video faster than the non-skippable ads.
YouTube CPM per Country
Some countries pay better for ads than others do. Below is a list of top countries’ YouTube CPM rates in 2021.
- United States of America
- New Zealand
- The United Kingdom