CPM vs. RPM: How YouTube Pays You Explained! (2025 Update)

[00:00] Hello and welcome to Victor Shamaki.

[00:04] Today I just want to talk with uh those

[00:07] who are on YouTube and those who are

[00:09] about to start YouTube and one of the

[00:12] key parameter or key aspect of or the

[00:16] key questions I've received over the

[00:18] time is how much do you pay? how do you

[00:22] two pay and all of that. So in this

[00:25] video we're going to demystify it and

[00:28] we're going to explain it one by one. It

[00:30] may take long but just be patient and

[00:33] follow through. So we have two key

[00:35] parameters or two key things that I've

[00:38] been used on YouTube. One is CPM and the

[00:42] other one is RPM. So the CPM is stands

[00:47] for

[00:48] cost per mile. Now the cost per mile is

[00:52] an advertiser what it's the cost that

[00:55] the advertiser pay for every 1,000 times

[00:59] their art is been displayed

[01:02] on your video and their focus is on

[01:05] impression.

[01:08] That is

[01:10] if an advertiser's video appear or ad

[01:14] app appears on your video 1,000 times

[01:19] what they are willing to pay.

[01:22] Don't forget their focus is not on

[01:25] impression.

[01:27] All right. So it f while the focuses on

[01:30] uh uh perspective indicating how much

[01:34] they are spending for art visibility.

[01:37] For instance, if an advertiser pays $10

[01:40] for every 1,000 ads impression, their

[01:44] CPM is $10.

[01:47] So I hope this is clear now.

[01:51] Now

[01:53] secondly,

[01:55] RPM

[01:57] revenue per mile.

[02:00] Now, this is uh the revenue a publisher

[02:04] for me example me as a YouTuber or

[02:07] website or app owner earns for every

[02:11] 1,000 terms their ads is displayed.

[02:16] Now basically like those who do all they

[02:18] call it um

[02:20] ad mop those who do anything that has to

[02:23] do like all those people that have apps

[02:25] that you know you be watching like uh

[02:27] all these let's say um

[02:31] if you are mining Pi or you're mining

[02:34] most of these crypto projects you

[02:36] realize that they have uh an ads being

[02:40] displayed on their video. So those ads

[02:43] that been displayed

[02:46] per 1,000 times that those ad are

[02:48] displays on their this thing. So the

[02:50] revenue they will get. So but in this

[02:52] instance YouTube I am a YouTuber like

[02:56] every 1,000 times that those are display

[02:59] how much I make. So the CPM focus on the

[03:04] cost of the advertiser that they pay and

[03:06] the RPM focus on how much I get. Now the

[03:10] focus here is on how much they are

[03:14] earning. That is the ad publisher is

[03:17] making in their ad space. So if a

[03:21] publisher earns $5 for every 1,000 ads

[03:23] impression, their RPM is $5.

[03:30] Now before we go into the practical

[03:33] aspect, I want to explain few things

[03:35] also. Impression clickth through rates.

[03:38] Now what is this impression clickthrough

[03:40] rate? Uh on YouTube it measure how often

[03:44] viewers click on a video thumbnails

[03:47] after seeing it. So to tell you that

[03:50] your thumbnail is very important how

[03:53] let's say just see a thumbnail and then

[03:55] what by seeing that thumbnail because

[03:58] YouTube know how to distribute videos to

[04:01] different people by recommendation and

[04:02] all of that. Now after they see it, as

[04:05] they click to it, that's what it means

[04:07] by impression clickthrough rate

[04:10] indicating how well the video is re

[04:12] resonating with potential viewers. It's

[04:15] calculated by dividing the number of

[04:17] clicks on a video by the total number of

[04:20] impression

[04:21] that times the thumbnail is displayed

[04:24] and multiplying by 100.

[04:28] Now key aspect of the impression

[04:31] clickthrough rate what it measures it

[04:34] measure the percentage of people who

[04:36] click on a video after seeing its

[04:38] thumbnails. Now the calculation is that

[04:40] the number of clicks divide by number of

[04:43] impression multiply by 100 which is

[04:47] equals to your uh click through rates.

[04:51] Now importance it provide insight into

[04:53] the video's engagement

[04:55] and whether it is successfully capturing

[04:58] the attention of viewers. Factor

[05:00] affecting CPR CTR sorry thumbnails

[05:04] design title description and relevance

[05:08] to the target audience.

[05:12] Example, if a video gets 1,000

[05:15] impression as thumbnail display 1,000

[05:18] times and 30 people click on it, the

[05:22] click through rate will be 3%. Meaning

[05:25] 30 / 1,000 multiply by 100 will give you

[05:29] three. All right. So these are very

[05:33] important factor to how YouTube pay.

[05:36] while the last one, the click-through

[05:38] rate deals with how well your video can

[05:42] do when people click on it. But these

[05:44] two CPM and RPM are how YouTube how you

[05:49] get paid and how your calculation is

[05:51] been made. So now let's go. I'm going to

[05:53] show you a dashboard to one of my

[05:55] YouTube channel and I'm going to explain

[05:58] some certain things. So let's go to

[06:01] reach for

[06:04] for uh click through impression

[06:08] clickthrough rate. Now this video has

[06:11] 156.6,000

[06:14] with an impression of 1.8 million but

[06:18] the impression clickthrough rate is

[06:22] 5.1%.

[06:23] So uh the impression is 1.8

[06:28] 8 million and out of that 1.8 million

[06:30] only 156,000

[06:34] watched it or view it. So that's why by

[06:37] that calculation we just I didn't want

[06:39] to go back into those calculation again.

[06:41] So you can see our impression click rate

[06:44] to be 5.1.

[06:47] Now going to the main thing which is the

[06:50] CPM and the CPR which is what is

[06:53] bringing us here. How much advertisers

[06:57] pay? CP

[07:00] R cost per mail CPM is 5.77.

[07:07] So you can see CPM for 1,000 view these

[07:12] advertisers are willing to pay $5.77.

[07:18] Now CP uh RPM

[07:24] revenue per mill

[07:27] here is my own revenue per this video

[07:29] has 156,000 but my revenue per mill that

[07:33] is revenue per 1,000 views RPM is 1.08.

[07:38] So if you multiply 1.08

[07:41] time uh 156.6,000

[07:46] 6,000 you will get this amount. So let's

[07:49] try it and see. With my calculator

[07:52] pulled up, we have 100 156.

[08:02] It's in,000 or let me just say 156

[08:08] 7,000. Let's leave it like that. 7,000

[08:12] multiply by 1.08.

[08:18] So it may be more than exactly what we

[08:20] see here, but let's say equal to and

[08:22] see. So you can see what I'm saying. We

[08:25] have 169

[08:29] 2369

[08:34] approximately we have 168.4

[08:38] uh 45. All right, here is 169. So just

[08:42] because I added some figure that's over

[08:44] 400 views that's what I just added was

[08:47] 156.6

[08:49] that's 156,600

[08:52] and something views. That's why you can

[08:54] see. So this is how much you earn. Now

[08:58] the impression

[09:00] this is calculated by how well your

[09:02] video do. And I think from my little

[09:04] experience I've come to realize that uh

[09:07] this one is calculated by you know arts.

[09:10] If you check how many times let's say

[09:12] this video is 14 minutes if we check how

[09:14] many uh placement of arts it may be 5 6

[09:18] 7 8 9 10 placement or four placement of

[09:22] the video as it plays on. Now if all the

[09:26] people didn't watch this video till the

[09:32] end maybe or watch some certain number

[09:35] of ads that's how this RPM is affected.

[09:39] So most of times people just watch few

[09:41] little time and go you know and all of

[09:43] that I know this is a teaching class so

[09:45] naturally teaching class is boring so

[09:47] except someone who really some most of

[09:49] the time people get to save and download

[09:51] the video. So this is how all of these

[09:54] things is calculated. So I feel like

[09:56] 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.