[0:00] Hello and welcome to Victor Shamaki.
[0:04] Today I just want to talk with uh those
[0:07] who are on YouTube and those who are
[0:09] about to start YouTube and one of the
[0:12] key parameter or key aspect of or the
[0:16] key questions I've received over the
[0:18] time is how much do you pay? how do you
[0:22] two pay and all of that. So in this
[0:25] video we're going to demystify it and
[0:28] we're going to explain it one by one. It
[0:30] may take long but just be patient and
[0:33] follow through. So we have two key
[0:35] parameters or two key things that I've
[0:38] been used on YouTube. One is CPM and the
[0:42] other one is RPM. So the CPM is stands
[0:47] for
[0:48] cost per mile. Now the cost per mile is
[0:52] an advertiser what it's the cost that
[0:55] the advertiser pay for every 1,000 times
[0:59] their art is been displayed
[1:02] on your video and their focus is on
[1:05] impression.
[1:08] That is
[1:10] if an advertiser's video appear or ad
[1:14] app appears on your video 1,000 times
[1:19] what they are willing to pay.
[1:22] Don't forget their focus is not on
[1:25] impression.
[1:27] All right. So it f while the focuses on
[1:30] uh uh perspective indicating how much
[1:34] they are spending for art visibility.
[1:37] For instance, if an advertiser pays $10
[1:40] for every 1,000 ads impression, their
[1:44] CPM is $10.
[1:47] So I hope this is clear now.
[1:51] Now
[1:53] secondly,
[1:55] RPM
[1:57] revenue per mile.
[2:00] Now, this is uh the revenue a publisher
[2:04] for me example me as a YouTuber or
[2:07] website or app owner earns for every
[2:11] 1,000 terms their ads is displayed.
[2:16] Now basically like those who do all they
[2:18] call it um
[2:20] ad mop those who do anything that has to
[2:23] do like all those people that have apps
[2:25] that you know you be watching like uh
[2:27] all these let's say um
[2:31] if you are mining Pi or you're mining
[2:34] most of these crypto projects you
[2:36] realize that they have uh an ads being
[2:40] displayed on their video. So those ads
[2:43] that been displayed
[2:46] per 1,000 times that those ad are
[2:48] displays on their this thing. So the
[2:50] revenue they will get. So but in this
[2:52] instance YouTube I am a YouTuber like
[2:56] every 1,000 times that those are display
[2:59] how much I make. So the CPM focus on the
[3:04] cost of the advertiser that they pay and
[3:06] the RPM focus on how much I get. Now the
[3:10] focus here is on how much they are
[3:14] earning. That is the ad publisher is
[3:17] making in their ad space. So if a
[3:21] publisher earns $5 for every 1,000 ads
[3:23] impression, their RPM is $5.
[3:30] Now before we go into the practical
[3:33] aspect, I want to explain few things
[3:35] also. Impression clickth through rates.
[3:38] Now what is this impression clickthrough
[3:40] rate? Uh on YouTube it measure how often
[3:44] viewers click on a video thumbnails
[3:47] after seeing it. So to tell you that
[3:50] your thumbnail is very important how
[3:53] let's say just see a thumbnail and then
[3:55] what by seeing that thumbnail because
[3:58] YouTube know how to distribute videos to
[4:01] different people by recommendation and
[4:02] all of that. Now after they see it, as
[4:05] they click to it, that's what it means
[4:07] by impression clickthrough rate
[4:10] indicating how well the video is re
[4:12] resonating with potential viewers. It's
[4:15] calculated by dividing the number of
[4:17] clicks on a video by the total number of
[4:20] impression
[4:21] that times the thumbnail is displayed
[4:24] and multiplying by 100.
[4:28] Now key aspect of the impression
[4:31] clickthrough rate what it measures it
[4:34] measure the percentage of people who
[4:36] click on a video after seeing its
[4:38] thumbnails. Now the calculation is that
[4:40] the number of clicks divide by number of
[4:43] impression multiply by 100 which is
[4:47] equals to your uh click through rates.
[4:51] Now importance it provide insight into
[4:53] the video's engagement
[4:55] and whether it is successfully capturing
[4:58] the attention of viewers. Factor
[5:00] affecting CPR CTR sorry thumbnails
[5:04] design title description and relevance
[5:08] to the target audience.
[5:12] Example, if a video gets 1,000
[5:15] impression as thumbnail display 1,000
[5:18] times and 30 people click on it, the
[5:22] click through rate will be 3%. Meaning
[5:25] 30 / 1,000 multiply by 100 will give you
[5:29] three. All right. So these are very
[5:33] important factor to how YouTube pay.
[5:36] while the last one, the click-through
[5:38] rate deals with how well your video can
[5:42] do when people click on it. But these
[5:44] two CPM and RPM are how YouTube how you
[5:49] get paid and how your calculation is
[5:51] been made. So now let's go. I'm going to
[5:53] show you a dashboard to one of my
[5:55] YouTube channel and I'm going to explain
[5:58] some certain things. So let's go to
[6:01] reach for
[6:04] for uh click through impression
[6:08] clickthrough rate. Now this video has
[6:11] 156.6,000
[6:14] with an impression of 1.8 million but
[6:18] the impression clickthrough rate is
[6:22] 5.1%.
[6:23] So uh the impression is 1.8
[6:28] 8 million and out of that 1.8 million
[6:30] only 156,000
[6:34] watched it or view it. So that's why by
[6:37] that calculation we just I didn't want
[6:39] to go back into those calculation again.
[6:41] So you can see our impression click rate
[6:44] to be 5.1.
[6:47] Now going to the main thing which is the
[6:50] CPM and the CPR which is what is
[6:53] bringing us here. How much advertisers
[6:57] pay? CP
[7:00] R cost per mail CPM is 5.77.
[7:07] So you can see CPM for 1,000 view these
[7:12] advertisers are willing to pay $5.77.
[7:18] Now CP uh RPM
[7:24] revenue per mill
[7:27] here is my own revenue per this video
[7:29] has 156,000 but my revenue per mill that
[7:33] is revenue per 1,000 views RPM is 1.08.
[7:38] So if you multiply 1.08
[7:41] time uh 156.6,000
[7:46] 6,000 you will get this amount. So let's
[7:49] try it and see. With my calculator
[7:52] pulled up, we have 100 156.
[8:02] It's in,000 or let me just say 156
[8:08] 7,000. Let's leave it like that. 7,000
[8:12] multiply by 1.08.
[8:18] So it may be more than exactly what we
[8:20] see here, but let's say equal to and
[8:22] see. So you can see what I'm saying. We
[8:25] have 169
[8:29] 2369
[8:34] approximately we have 168.4
[8:38] uh 45. All right, here is 169. So just
[8:42] because I added some figure that's over
[8:44] 400 views that's what I just added was
[8:47] 156.6
[8:49] that's 156,600
[8:52] and something views. That's why you can
[8:54] see. So this is how much you earn. Now
[8:58] the impression
[9:00] this is calculated by how well your
[9:02] video do. And I think from my little
[9:04] experience I've come to realize that uh
[9:07] this one is calculated by you know arts.
[9:10] If you check how many times let's say
[9:12] this video is 14 minutes if we check how
[9:14] many uh placement of arts it may be 5 6
[9:18] 7 8 9 10 placement or four placement of
[9:22] the video as it plays on. Now if all the
[9:26] people didn't watch this video till the
[9:32] end maybe or watch some certain number
[9:35] of ads that's how this RPM is affected.
[9:39] So most of times people just watch few
[9:41] little time and go you know and all of
[9:43] that I know this is a teaching class so
[9:45] naturally teaching class is boring so
[9:47] except someone who really some most of
[9:49] the time people get to save and download
[9:51] the video. So this is how all of these
[9:54] things is calculated. So I feel like
[9:56] sharing uh this insights to you and you
[10:00] could continue making your own research.
[10:03] This may be just part of what you need.
[10:05] So you just make your own research and
[10:08] continue researching. So I'll keep
[10:09] bringing things of this magnitude your
[10:11] way. And uh don't forget to like, share,
[10:15] comment, and subscribe to this channel.
[10:17] I'll see you in the next video.