[0:00] so two of the most important metrics for
[0:01] any youtube creator to fully understand
[0:03] are their cpm and their rpm these
[0:05] metrics tell you a ton about your
[0:07] channel as a whole and determine how
[0:08] much you actually get paid on youtube
[0:10] however most creators don't actually
[0:11] understand how these metrics work so in
[0:13] this video i'm going to break them down
[0:14] very simply and show you how you can
[0:16] actually use them to your advantage to
[0:17] make more money on the youtube platform
[0:19] so starting off what is your youtube cp
[0:22] at well this was actually the only
[0:23] metric we had as creators to figure out
[0:25] how much we were getting paid on youtube
[0:27] until about mid 2020 when rpm was
[0:29] actually rolled out now cpm measures how
[0:32] much advertisers are actually paying
[0:34] google to get in front of your videos on
[0:36] the youtube platform see because youtube
[0:38] ads run as an auction okay so the more
[0:40] bidders there are and the more demand
[0:42] there is for ad space on a particular
[0:43] video the higher the price is going to
[0:45] be and the more the creator is going to
[0:47] make that drives the cpm up higher and
[0:49] higher when there are more people
[0:50] bidding for that same ad spot now cpm
[0:53] stands for cost per mil and it's the
[0:54] cost that the advertiser actually pays
[0:56] for 1 000 impressions on your channel
[0:59] now an impression is anytime someone
[1:01] sees an ad on one of your videos so to
[1:03] break that all down okay your cost per
[1:05] mil your cpm is driven by an auction
[1:08] process on your channel where
[1:09] advertisers are bidding against each
[1:10] other the higher the bids go the higher
[1:12] the cpm goes and the more money you take
[1:14] home in your pocket now youtube is gonna
[1:15] be taking a 45 cut of all of this money
[1:18] so your cpm is not how much money you
[1:20] are actually making it is before
[1:22] youtube's cut comes into play so for
[1:24] example 1 000 views on a 100 cpm channel
[1:27] would translate to 55 in your pocket as
[1:30] the creator and 45 of those dollars
[1:32] going to youtube however creators wanted
[1:33] a better metric to understand how much
[1:34] money they were actually making and so
[1:36] that's how the rpm metric came around
[1:38] which we'll get to in just a little bit
[1:39] now a common question a lot of newer
[1:41] youtubers have is what is a good cpm
[1:43] well it's a common question but there is
[1:44] no firm answer on this because your cpm
[1:46] depends on a whole number of factors
[1:49] this includes your audience demographics
[1:50] the topics of your videos and even
[1:52] whether or not you swear in your content
[1:54] say because all of these factors
[1:55] influence how much companies are
[1:57] actually willing to pay for ads on your
[1:59] channel now the average us cpm is
[2:01] anywhere from six dollars to eight
[2:03] dollars as of the recording of this
[2:05] video personally my cpm is closer to
[2:07] about 25 to 35
[2:09] because i'm making videos on finance
[2:11] taxes and things that advertisers are
[2:13] more willing to pay to get in front of
[2:15] my audience versus something like a
[2:17] gaming channel where the demand for
[2:18] those ads is a little bit lower because
[2:20] they're not quite as targeted at a
[2:22] particular audience but that being said
[2:24] there are some methods you can use to
[2:25] actually increase your cpm so let's dive
[2:27] into three of the most effective methods
[2:28] you can use right now now in the past
[2:30] there were a number of scares on youtube
[2:32] about very unsafe content being posted
[2:34] to the platform and advertisers having
[2:36] their ads shown before this unsafe
[2:38] content very bad for brands brands do
[2:40] not want to associate themselves with
[2:42] that type of content so brands have
[2:44] gotten a lot more careful with the
[2:45] videos that actually put ads on within
[2:47] the youtube platform so that being said
[2:48] if you swear in your videos you have a
[2:50] smaller pool of advertisers willing to
[2:52] put their ads on your videos because a
[2:53] lot of brands are trying to be family
[2:55] friendly trying to appeal to a younger
[2:57] audience they don't want to put their
[2:58] ads on videos of people who swear same
[3:00] thing if you're talking about illegal
[3:01] substances a lot of brands don't want to
[3:02] be associated with that so you're really
[3:04] reducing your pool of available
[3:06] advertisers when you talk about these
[3:07] particular topics now the next method
[3:09] you can use to increase your cpm is to
[3:11] target high cpm countries see because
[3:13] advertisers are willing to pay a very
[3:14] different amount of money for 1 000
[3:16] views in the us versus 1 000 views in
[3:18] india and this is actually why many
[3:20] international creators choose to make
[3:21] their videos in english both to appeal
[3:23] to a broader audience but then also to
[3:26] potentially capitalize on those higher
[3:28] cpms than they would get if they were
[3:29] making videos in their native language
[3:31] for some context here some of the
[3:32] highest cpm countries are the us the uk
[3:35] australia and the united arab emirates
[3:37] okay so speaking english can potentially
[3:39] give you a huge leg up compared to
[3:40] whatever country you are in maybe the
[3:41] cpms are a lot lower there so if you can
[3:43] appeal to an english-speaking audience a
[3:46] lot of times that can increase your cpm
[3:48] now the third method you can use to
[3:49] actually increase your cpm is to choose
[3:51] a desirable niche now most creators
[3:53] already have a niche and most of them
[3:54] didn't choose that niche based on the
[3:56] cpm they chose it based on something
[3:58] that they were actually passionate about
[3:59] and interested in that's why most
[4:01] creators get into this because they
[4:02] actually want to talk about stuff that
[4:03] they are interested in but that being
[4:05] said there are some ways to slightly
[4:07] tweak your niche in order to capitalize
[4:09] on a dramatically higher cpm here's a
[4:11] quick example so like i said before
[4:13] entertainment gaming channels typically
[4:14] have a very low cpm because they're
[4:16] appealing to a very broad audience
[4:18] advertisers can't get as targeted with
[4:20] the particular ads that they're showing
[4:21] and a lot of these viewers are actually
[4:22] on the younger side and might not even
[4:24] have the money to buy their products now
[4:25] business and entrepreneurship channels
[4:27] typically have much higher cpms because
[4:29] advertisers can really target this
[4:30] audience and this audience typically has
[4:31] more money to spend than the typical
[4:33] viewer of a gaming channel so if you had
[4:35] seen an entertainment channel that
[4:36] focused on doing different challenges
[4:38] you could potentially weave in more
[4:39] business and entrepreneurship maybe some
[4:41] make money challenges in order to
[4:43] capitalize on the higher business and
[4:44] entrepreneurship cpm while also staying
[4:47] true to your niche which is
[4:48] entertainment and doing different
[4:50] challenges so if you've just kind of
[4:51] told yourself well i'm just in a low cpm
[4:53] niche that's not necessarily the case
[4:54] and there are ways for you to tweak what
[4:56] you're doing just a little bit to really
[4:57] dramatically increase your pool of
[4:59] advertisers that want to get in front of
[5:01] your audience but that being said
[5:03] there's this constant balance between
[5:04] your potential audience size and your
[5:06] cpm because with a gaming channel or a
[5:08] general entertainment channel a mrb's
[5:10] channel things like that there's
[5:11] generally a much broader appeal for that
[5:13] content okay like mr beast is pulling 50
[5:15] million views of video i'm not gonna get
[5:17] 50 million views on a video talking
[5:18] about taxes for youtube okay so you have
[5:20] to kind of balance that and see okay i'm
[5:22] probably getting a much higher cpm than
[5:24] mr beast is but he's getting tens of
[5:26] millions of views on his videos so even
[5:28] if you do have a low cpm niche it's
[5:30] still possible to make a significant
[5:32] amount of money because you can reach a
[5:33] much wider audience with that type of
[5:35] content but now let's dive into what
[5:37] your youtube rpm actually is well this
[5:40] number actually describes how much you
[5:41] as the creator are making this takes
[5:43] into account youtube's 45 cut of your
[5:45] adsense income and as a result it's
[5:47] typically lower than your cpf now i say
[5:49] typically lower because there are
[5:51] certain cases where your rpm may
[5:53] actually be higher for your cpm on a
[5:55] particular video or on a collection of
[5:57] videos and i'll have more on that in
[5:59] just a second so rpm stands for revenue
[6:01] per mil and represents the amount of
[6:03] money you are making per 1000 views on
[6:06] your channel now this includes other
[6:07] things other than just your youtube
[6:09] adsense things like super chats channel
[6:11] memberships and your youtube premium
[6:13] revenue and so if these additional
[6:14] income streams are significant enough
[6:16] they can potentially push your rpm above
[6:18] your cpm and i've seen that with a
[6:19] couple of my clients channels from time
[6:21] to time they'll get a really high
[6:23] performing video that will have an rpm
[6:25] actually higher than the cpm typically
[6:27] happens with like live streams where you
[6:28] get a lot of super chats but for the
[6:30] most part your cpm is typically going to
[6:32] be higher than your rpm now quick
[6:34] example a 5 rpm means that for every 1
[6:36] 000 views on your channel you are taking
[6:38] home five dollars in your pocket so when
[6:40] you're looking at your youtube cpm
[6:41] versus your rpm both of these are very
[6:43] important metrics for creators to know
[6:45] your rpm is typically going gonna be
[6:47] more important though because that is
[6:48] focused on how much money you are
[6:49] actually taking home at the end of the
[6:51] month that's because it factors in
[6:52] youtube's split of the ad revenue and a
[6:54] bunch of other income sources that you
[6:56] can make on the youtube platform now
[6:57] keep in mind though that neither of
[6:58] these metrics takes into account any
[6:59] other income streams you're doing
[7:01] outside of the youtube platform things
[7:02] like affiliate marketing brand deals
[7:04] sponsors all of that good stuff so it's
[7:06] gonna be useful to continue to
[7:07] experiment on your channel and see how
[7:08] you can improve both of these metrics
[7:10] over time so now that you know how your
[7:11] youtube cpm and your rpm work the next
[7:13] thing you should do is check out this
[7:14] video over here where i break down
[7:15] exactly how to get sponsors on youtube
[7:17] my step-by-step process that i've used
[7:19] for myself and for dozens of clients to
[7:21] land them sponsorship deals on the
[7:22] youtube platform it's actually a lot
[7:24] easier than most creators things so
[7:25] check out this video and i'll see you
[7:27] over there