As a content creator on YT, you must have heard terms like YouTube RPM and CPM. But did you know how significant it is to know RPM YouTube meaning to achieve your channel monetization goals? Understanding what these metrics are and how they help you earn more is crucial to growing your business or personal brand on the world’s largest video-sharing platform.
So what is RPM on YouTube? And how can creators take advantage of YouTube RPM? Let’s take a quick look at everything you must know to understand RPM YouTube meaning.
Table of Contents
What Is RPM On YouTube?
RPM stands for Revenue Per Mille and is a representation of how much a YouTuber has earned per 1,000 views. RPM allows creators to know how much they will earn from running ads on their video content. However, creators must remember that this amount does not include YouTube’s revenue share.
This metric allows YouTubers to get a hold of the accurate amount of revenue they will earn after YouTube deducts its share. YouTube RPM is a creator-centric metric that immensely helps YouTubers scale their earnings.
YouTube RPM benefits YouTubers in various ways. It gives content creators an overview of how effective their monetization strategy is on the platform. YouTubers can always improve and build ways to enhance their revenue by understanding these ad revenue analytics,
How To Calculate RPM YouTube?
The simple formula to calculate RPM is:
(Total Revenue / Total Views) X 1000 = RPM
YouTubers can simply visit the Analytics dashboard on YT Studio to access the RPM metric on YouTube. Here’s how you can check your RPM through YouTube Studio:
- Go to YouTube Studio on your browser or get the YouTube Studio app.
- Go to the left side menu bar
- Now select Analytics. You’ll see an overview of your channel’s analytics on the screen.
- Now go to the Revenue section.
- You will find RPM in the middle section.
Getting access to your average YouTube RPM is easier. However, what most YouTubers fail to understand is how effective it is to gain an in-depth understanding of what is RPM on YouTube. You can even calculate your YouTube Ad Income through this; simply use this formula:
Average Views / 1000 X RPM = YT Ad income
Now that you know RPM meaning on YouTube, let’s see how it is different from CPM or Cost Per Mille.
The Difference Between RPM And CPM
CPM and RPM are two different metrics, and understanding the purpose of each is extremely important. Cost Per Millie (CPM) is the cost an advertiser will pay per 1000 ad views on a YouTube video. This metric gives an idea to the advertiser on how much they will have to spend to run a specific ad on a particular channel.
YouTube RPM is completely centered around the creator, and it includes complete revenue from ads, YT Premium, channel memberships, super chat, and others that can be seen through a bifurcation on YouTube Analytics. Whereas CPM only includes revenue that is generated from ads and YouTube Premium.
Another big aspect that makes a difference between the two is that RPM takes the total number of views into the calculation, even from the non-monetized videos. On the contrary, CPM is based on only the views from the videos that were monetized.
Additionally, certain factors like geolocation, audience age, and seasonal changes affect the CPM. When compared, CPM will always be higher than RPM. This is because the average RPM on YouTube is the actual money you earn as ad revenue.
Why Is YouTube RPM The Future Of YT Creators?
Now that you have an understanding of what is RPM YouTube, you must have grasped an idea of how significantly it can enhance your revenue as a creator. CPM does not take into account many things like Super Stickers, Super Chats, YT Premium, and channel memberships, but RPM does, and that’s why RPM will help you in the long run.
RPM gives you an estimation of how well you’re performing in your community and talks about the growth of your channel. It is not centric on advertisements which is a great way to earn revenue, but it doesn’t deliver the actual essence of being a creator.
Being a creator, if your community is investing more in you, that means you’re actually doing well on the platform. As a YouTuber, this will help you build your own empire on the platform.
Ways To Boost Your YouTube RPM
Now that you have a clear picture of RPM YouTube meaning, let’s look at some ways to grow your YouTube RPM and enhance your monetization strategies.
1. Activate Ads In All Formats
Ensure that you have turned on the ads in every format and on each eligible position in your videos.
2. Increase Engagement
Focus on creating high-quality, valuable content that aligns with the needs of your target audience and garners maximum engagement. The higher engagement you get on your videos, the more the YT algorithm favors it. A highly favored video gets more views and potentially a higher RPM too.
3. Diversify Revenue Generating Sources
Don’t solely rely on Ad revenue gained from your YT videos. Explore other sources like channel memberships and super chats to boost your YouTube RPM.
4. Ads Must Be Relevant To The Audience
Average YouTube RPM can be increased by targeting the right kind of ads to the audience. By doing so, it increases the effectiveness of the ad. Relevant ads can appeal to the audience, and they will be more likely to click on the ad and may watch it without even skipping.
5. Improve The Site’s Speed
Fix any technical issues, and the site’s speed as user experience is one of the most crucial aspects in improving the ad’s viewability.
6. Find Optimal Ad Format & Size
To increase YouTube RPM, you must experiment with various ad formats and sizes to maximize revenue generation. The optimal combination of the Ad format and size can increase the clicks and impressions and allow your channel to drive up the CPC of the ads.
Ultimately, YouTube RPM is something that you must know as a creator on YouTube, as it is highly beneficial in monetizing your channel. A firm understanding of RPM YouTube’s meaning and working with this metric will help you in improving your insights into analytics on the platform. As a YouTuber, this metric is a testament to how well you’re doing through your content and managing to keep your community engaged.
Frequently Asked Questions
Q1. What Is A Good RPM For YouTube?
Platforms like Media Shark report that since the average CPM of YouTubers in the US is $6 to $8, their average RPM on YouTube is $3.30 to $4.40. $3 can be considered as a good average RPM for creators on the platform.
Q2. How Can I Increase My YouTube RPM?
Strategies like focusing on creating high-quality content, enhancing it, and thinking about what your viewers engage with more are some of the ways that will be highly effective in getting you a higher RPM.
Q3. How Much YouTube Pay For 1,000 Views?
Influencer Marketing Hub estimates that the typical YouTuber earns $0.018 for each view. For every 1,000 ad views, that works out to around $18.