CPM vs RPM (new YouTube Ads metric! which one should you use?)

[00:00] so when it comes to youtube ad revenue

[00:01] which is just where you let youtube put

[00:03] ads on your videos

[00:04] so that you can make some money through

[00:06] that process because the advertisers

[00:08] have to pay youtube to put those ads on

[00:10] your videos and so

[00:11] since they're your videos youtube splits

[00:13] the money that they get from the

[00:15] advertiser

[00:16] with you that's how youtube ad revenue

[00:18] works and typically

[00:19] one of the the main metric that people

[00:21] pay attention to

[00:23] when it comes to how much money you earn

[00:25] from youtube ad revenue

[00:27] is the cpm which stands for cost per mil

[00:30] but just recently youtube has come out

[00:33] with a new metric

[00:34] called rpm which is revenue per ml

[00:37] [Music]

[00:40] in order to allow youtube in the first

[00:41] place to put ads on your videos you have

[00:43] to have a thousand subscribers and 4 000

[00:46] hours of watch time

[00:47] then you apply to the program and get

[00:48] accepted and then you can start to earn

[00:50] money through the ads on your videos

[00:51] i mentioned that just so you know that

[00:53] but also because i've got plenty of

[00:55] videos

[00:56] that walk you through how to get ads on

[00:57] your videos how to get a thousand

[00:59] subscribers four thousand hours watch

[01:01] time

[01:02] all of that really good videos tutorials

[01:04] on that whole process so

[01:06] and then i even break down how to make

[01:08] more money from the ads that you're

[01:09] putting on your videos

[01:10] once you're at that point all right so

[01:12] i'm here inside my analytics for this

[01:14] instagram video

[01:15] and i've got it uh i've got revenue

[01:17] selected right here and you'll see that

[01:18] they've added an

[01:19] rpm tab right here and then right here

[01:21] is the playback based cpm okay so some

[01:23] questions

[01:24] what's cpm what's rpm why is the rpm

[01:26] lower than the cpm

[01:28] which one of these should you pay

[01:29] attention to so first let's cover what

[01:31] the cpm is

[01:32] and by the way this youtube help center

[01:35] is actually very helpful

[01:36] they do a good job at breaking all this

[01:37] down i know it's not fun and exciting

[01:39] necessarily to come in here and read

[01:41] through these but

[01:42] the information's here and it's really

[01:43] good so right here what's the difference

[01:45] between rpm and cpm so cpm is the cost

[01:47] per 1000 ad impressions

[01:49] before youtube revenue share another way

[01:52] to say that which i think it says it

[01:54] over here

[01:56] yeah so right here in this one it gives

[01:58] the definition cpm is the average amount

[02:00] of money that advertisers pay

[02:02] to show ads in your videos so the cpm is

[02:05] the average amount that the

[02:06] advertiser is paying to reach 1 000

[02:09] people

[02:10] through your video and then what happens

[02:12] is youtube splits that cpm off of

[02:14] every thousand views with you i think

[02:17] it's a 55 45 split something like that

[02:19] but

[02:20] it's pretty close to right down the

[02:21] middle youtube splits that with you

[02:23] and i do want to clarify right here and

[02:24] this will make more sense when we talk

[02:26] about rpm but

[02:27] that you don't earn that cpm or that

[02:30] split of the cpm off of every thousand

[02:32] views

[02:32] you only earn that off of every thousand

[02:34] views that are monetized

[02:36] some views are monetized some views are

[02:38] not monetized

[02:39] some viewers will get ads some viewers

[02:41] won't get ads

[02:43] and there's other things that factor

[02:44] into that as well but it's just

[02:46] important to note that when you look at

[02:47] your cpm it's based only off of your

[02:49] monetized views

[02:51] and not the other views that weren't

[02:53] monetized aren't factoring into it

[02:55] so what the rpm is doing is factoring in

[02:58] all those other views that weren't

[03:00] counted in the cpm

[03:01] and giving you what would essentially be

[03:03] a truer

[03:05] cost a truer how much you're earning per

[03:08] every thousand views

[03:09] because now it's not what an advertiser

[03:11] is paying per every thousand views

[03:13] and it's not only counting the monetized

[03:15] views but now it's looking at all the

[03:17] views on your channel or on the video as

[03:19] a whole

[03:19] including every single view even the

[03:21] ones that weren't monetized

[03:23] and then basing an rpm giving you uh

[03:26] here's how much you're earning for every

[03:27] thousand views

[03:28] off of all of the views collectively so

[03:30] in case my wording right there was

[03:32] confusing we can try and use youtube's

[03:33] words right here they say it only takes

[03:35] into account the revenue from ads and

[03:37] the views from the videos

[03:38] that we're monetizing lastly it shows

[03:40] you what the advertisers were paying

[03:42] not what you're actually earning which

[03:44] is kind of cool from a research

[03:46] perspective like if you're interested in

[03:49] what your competitors are paying for

[03:51] every

[03:52] thousand views you could rank a video in

[03:55] that topic in that niche and get an idea

[03:57] for example looking at this video right

[03:59] here i've got a pretty good idea that

[04:01] people at least for at least for this

[04:03] topic this niche

[04:05] instagram ads are paying somewhere

[04:07] around

[04:08] 43 bucks for every thousand views okay

[04:10] let's talk rpm now rpm is a better

[04:12] metric for creators because it shows you

[04:14] how much you earn on youtube and it

[04:15] takes into account

[04:17] total revenue reported in youtube

[04:19] analytics including

[04:20] ads youtube premium channel membership

[04:22] super chat super stickers okay that's

[04:23] what i probably should have mentioned

[04:24] that earlier i kind of forget

[04:26] to think about that because i'm not

[04:28] doing super chats and super chicken

[04:30] stickers channel memberships i'm not

[04:32] doing that at all

[04:33] um but if you are then your art that

[04:36] then

[04:37] all of that uh all of those earnings

[04:39] will also be included in your rpm

[04:41] so that's cool because those aren't

[04:43] included at all in the cpm because again

[04:44] the cpm is the

[04:45] amount that the advertiser is paying for

[04:47] every thousand views

[04:49] also we got total number of views from

[04:51] your videos including those that are not

[04:52] monetizing i talked about that

[04:54] the actual revenue earned after revenue

[04:57] share so i talked about that split

[04:59] the cpm is not showing that split but

[05:01] the rpm does reflect

[05:03] the split between youtube and yourself

[05:05] youtube and the creator

[05:06] please note i like how they put the

[05:08] exclamation point right here because the

[05:09] first time i saw it in there in the

[05:11] in the actual analytics i was like oh

[05:13] why is that so low right because

[05:14] but it makes sense completely makes

[05:16] sense it's a ratio that includes revenue

[05:18] that is calculated after youtube's

[05:19] revenue share

[05:20] and the total number of views it will

[05:22] typically be lower than your cpm

[05:24] you shouldn't see a difference in the

[05:25] actual amount of revenue that you make

[05:27] okay right here this is good to know

[05:28] it's good to hear it right from

[05:29] youtube's mouth i've said this in my

[05:31] other videos but in order to improve

[05:33] your rpm in order

[05:34] in other words how to make more money

[05:36] here's what you need to do here's some

[05:38] steps to maximize

[05:39] enable monetization on all videos enable

[05:42] all ad formats

[05:44] enable ads at eligible positions mid

[05:46] roles

[05:47] going back to these mid-roll ad stacking

[05:49] tests that i've been doing

[05:50] and then it recommends enabling the

[05:52] other features that they offer

[05:53] membership super chat

[05:55] etc so here's this video again with a 43

[05:58] cpm so that's what advertisers are

[06:00] paying for every

[06:01] 1000 views and then i'm making 25

[06:04] off of every thousand views and if we

[06:07] look at my channel as a whole just for

[06:08] fun

[06:09] over its entire lifetime my playback

[06:11] base cpm has been twenty three dollars

[06:13] and my rpm eight dollars and twenty nine

[06:16] cents

[06:17] and that makes sense that it's quite a

[06:18] bit lower for the reasons that we talked

[06:20] about and then also because there was

[06:22] a good chunk at the beginning of my

[06:23] channel and then i just have some videos

[06:25] that straight up aren't monetized and

[06:26] for more ways to increase your rpm check

[06:28] out my ad stacking test videos and then

[06:31] also the videos i've made about my cpm

[06:33] again

[06:34] new metric here rpm i talked about cpm

[06:37] in the previous videos moving forward

[06:39] now

[06:39] i'll be talking much more about rpm

[06:41] since that's the

[06:43] much truer number as far as how much i'm

[06:45] earning per view which by the way your

[06:47] rpm is

[06:48] just your cost per view times 1000 just

[06:50] to make it an easier bigger number to

[06:52] read

[06:53] is honestly the real reason that they do

[06:54] that so if we

[06:56] did the math in reverse here and divided

[06:59] it by a thousand

[07:00] that would give me how much i earned per

[07:01] view or how much i've earned per view

[07:04] to date so 8.29

[07:07] divided by 1000 so not even

[07:10] a penny per view

[07:19] you