YouTube RPM v CPM What Do They Mean

[00:00] when our youtube channels reach a

[00:02] certain level

[00:03] we get monetized which means

[00:06] youtube then starts running ads in our

[00:08] videos and we start earning money from

[00:11] it

[00:12] so that's when we might start hearing

[00:14] the terms rpm and

[00:17] cpm but what do they actually mean well

[00:20] in this video i'm going to give you a

[00:22] very simple answer to that and it's

[00:24] coming up right now

[00:33] so here we are on my youtube channel

[00:35] mark warner social media selling one two

[00:37] three and this video is all about

[00:40] explaining the difference between rpm

[00:42] versus cpm and these become important

[00:46] terms or metrics for us all to

[00:48] understand once our youtube channel gets

[00:50] monetized that's right once you have

[00:52] over four thousand watch hours on your

[00:55] youtube channel and a thousand

[00:57] subscribers youtube

[00:58] start putting ads in front of your

[01:00] videos or ads within the videos and

[01:02] that's when the term rpm and cpm come

[01:04] into play so i'm recording this video on

[01:06] the first of october the start of a new

[01:08] month here in sydney um and my cpm for

[01:10] the month was 24. and my rpm was

[01:14] 11.46 so for the month of um september

[01:17] i've earned um 706

[01:19] u.s

[01:20] dollars which will convert to about 900

[01:23] australian dollars in advertising

[01:25] revenue so cpm and then rpm is how this

[01:28] final figure is decided

[01:31] so cpm is the cost per 1000 ad

[01:34] impressions

[01:36] before youtube share with me some of the

[01:39] revenue so what does that mean so

[01:40] basically what that means is advertisers

[01:43] are paying from last month what was the

[01:45] figure it was twenty four dollars and

[01:46] eight cents so last month on my channel

[01:49] advertisers were paying twenty four

[01:52] dollars and eight cents per 1000

[01:55] impressions of their ad

[01:57] placed in my video that's right so when

[02:00] the advertisers have to bid and place

[02:02] their um they're at in my video it is

[02:05] worth to them

[02:07] um or the bidding for them is 24.08

[02:10] now from what i understand my channel is

[02:12] pretty high you know the average channel

[02:14] could be you know i'm i'm feeling um

[02:16] people tell me you know around 10 that

[02:18] type of thing so the advertisers are

[02:21] determining my content and the people

[02:23] who are watching my content a little bit

[02:25] more valuable hence why it's a twenty

[02:28] four dollars in eight cents um cpm now

[02:32] that means the rpm is always going to be

[02:36] lower than the cpm because the rpm

[02:39] is what is paid to me the revenue share

[02:42] or the revenue split for the month of

[02:44] september and i'm using this as an

[02:45] example is

[02:47] 11.46 and it includes all the views that

[02:50] were monetized on my channel so it's

[02:53] pretty straightforward so again

[02:55] the cpm is what the advertisers pay the

[02:59] rpm is what i get paid in

[03:03] at the end of each month and and this is

[03:05] a really live example because we've just

[03:07] ticked over the end of september for the

[03:09] month of september the rpm on my channel

[03:12] was 24.8 cents which means the um sorry

[03:15] the cpm was 2408 the rpm 1146 earning me

[03:19] 706 um dollars in ad revenue us dollars

[03:22] which converts to about 900 odd

[03:23] australian dollars probably 930 which is

[03:25] pretty good for me so simple explanation

[03:28] what i want you to do i'd love you to go

[03:29] to um the comment section below um and

[03:32] let me know what your cpm is and your

[03:34] rpm because it will be different on each

[03:36] particular um channel and there is no

[03:38] right or wrong um you know answer to

[03:40] that you know some people are no doubt

[03:42] are going to be way more than mine and

[03:44] i've seen that already

[03:45] other people i know will be

[03:47] significantly less as well so go to the

[03:49] comments let me know your thoughts on

[03:51] that and while you're there don't forget

[03:52] to hit that subscribe button as well