What Is the Best CPM on YouTube? Your Complete Guide
You’re in the right place to learn more about the best CPM on YouTube. Today, we’ll discuss some of the best CPMs on YouTube and what you can do to improve your CPM. We’ll also detail what a CPM means regarding advertising revenue and various types of ads.
Keep reading for a complete guide to the best CPM on YouTube.
What Does CPM Mean?
Let’s start with the basics for those who are unfamiliar with YouTube CPM. CPM simply means cost per 1,000 impressions.
It’s a description of the payment units for YouTube advertising. In other words, advertisers will pay you every 1,000 impressions their ads receive from viewers of your videos.
The CPM rate will vary depending on how much an advertiser pays. It will also vary based on several other factors. These factors might include ad type, bidding price, and consistency.
Calculating YouTube CPM
Suppose an advertiser pays $12 per CPM for ads viewed across your video channel. Now, imagine that the advertiser received 6,000 views from your video.
You’d divide 12 by 6,000 to find the CPM. You’d end up with a CPM of $0.002.
Now, you’d multiply your CPM of $0.002 by 1,000. That will give you a cost per action (CPA) of $2.
YouTube will take 45% of your CPA. After paying the YouTube fee, you’ll end up with $1.10 for every thousand advertising views.
$1.10 may not seem like much for a thousand views. However, this kind of arrangement can result in handsome earnings if you can produce larger and consistent results.
What Is the Best CPM on YouTube?
YouTube CPMs are different around the world. They vary by country.
The Maldives currently holds the highest CPM, at $15.47. Meanwhile, YouTube CPM in Guadeloupe is $10.97. Denmark video content creators might earn about a $10.61 CPM.
In Poland, you’d earn about a $9.23 YouTube CPM. In Pakistan, your earnings would come out to around a $7.54 CPM.
YouTube CPM also varies by niche. The most profitable YouTube CPMs are in health, finance makeup, retail, and technology.
It pays to know what’s going on with YouTube CPM. When you understand which niches are valuable to advertisers, you can craft your content for those niches and increase your monetization opportunities.
Average YouTube CPMs
Again, it’s important to remember that YouTube CPMs vary greatly. For the most part, however, what you earn is dictated by what advertisers are willing to pay to distribute an ad using your video.
Let’s try another example. Imagine an advertiser pays $10 to place an ad.
It will play across your video 1,000 times. That will give you a CPM of $10.
This is the experience of many YouTube Partner Program participants. On average, an advertiser might pay anywhere from $7 to $10 in YouTube CPM.
Figuring out YouTube CPM can prove tricky. If you want to play around with numbers, a CPM calculator may help.
Why CPM Matters
YouTube CPM is a bit technical, but it’s an important metric for creators. It helps you figure out which videos are most valuable to advertisers.
Understanding CPM is the best way to monetize your videos. Hopefully, you’re starting to see that the CPM rate is critical information.
You’ll need to understand this kind of metric if you want to make a full-time career out of creating YouTube videos. An understanding of CPM will help you to create an efficient long-term strategy for targeting topics.
CPM vs RPM
RPM is another helpful metric for content creators. CPM gives you your income after paying YouTube fees.
RPM is another metric—revenue per millie. This metric will help you calculate your personal income. However, it takes into account the platform’s retention.
Both RPM and CPM are important metrics. However, CPM is more important for advertisers. RPM is what matters when it comes to you making a profit with YouTube videos.
Calculating Your RPM
YouTube will not give you a direct RPM value. However, you can find out your RPM with some investigation.
You’ll want to look at your YouTube Settings under Payments. There, you can find your monthly income. Now, divide your monthly income by the number of monetized views and multiply it by 1,000.
Imagine that you received $100 last month. During that time, your videos received 25,000 views. In that case, your RPM equals:
100 / 25,000 x 1,000 = $4
In other words, you earned $4 RPM for every 1,000 views.
Targeting the Right Age Group
It’s also important to consider the age group of your audience. Content viewers fall into different age ranges.
These age ranges have different income levels. In 2013, for instance, adults between the ages of 45 and 54 earned an annual high of $78,875.
These individuals spent around $60,524 more compared to any other age group. Here, it’s important to remember that advertisers want to cater to the age group with the most disposable income.
Seasonal Changes in CPM
You must also consider how seasonality can affect your CPM. For instance, Google CPM and Amazon CPM may fluctuate throughout the year. The same concept applies to YouTube CPM.
Take Christmas, for instance. Imagine you’ve published YouTube tech content.
You can expect your CPM to increase during the gift-buying season. This is when people are making gift buying decisions. Many people will watch tech video content to find out more information about potential gifts.
Meanwhile, food and fitness YouTube channels might see an increase in CPM as we enter the New Year’s season. It’s then when people are making New Year’s resolutions and looking for information related to these topics. As a result, this kind of content gets more views and is more valuable to advertisers around this time of year.
Type of Ad Placement and CPM
You can control the type of ads placed on your videos, and you should. If you’re new to YouTube advertising monetization, your first instinct is most likely to accept any kind of advertising possible.
In this case, you might display every type of ad. These ads might include:
• Display ads
• Non-skippable ads
• Overlay ads
• Sponsored cards
At first, it may seem like the smart thing to do is to generate any kind of revenue possible.
However, YouTube impressions varies across ad types. For instance, you’ll earn a higher CPM with video ads compared to display ads. Advertisers pay more for video ads because viewers can’t ignore them as easily as they can disregard display ads.
A Note on “Made for Kids” Channels
You may have a passion for showing kids how to create cool DIY crafts. However, that passion will come at a cost when it comes to YouTube CPM.
Relatively recently, YouTube received a hefty $170 million fine for a violation of the Children’s Online Privacy Protection Act. The law says that websites cannot collect personal information about children under the age of 13. This event has implications for your Made for Kids YouTube channel.
The short version is that you’ll make less ad revenue if you create content for children. YouTube cannot collect personal information about most young viewers. The company can’t serve targeted ads to children for this reason.
Using Your Impressions to Your Advantage
Now, let’s talk about finding your niche inside your niche.
Imagine that you create health, beauty, and wellness videos. Over time, you might find that makeup tutorials receive the highest YouTube CPM. In that case, you’d want to start aligning your video content with that topic.
You may also find that a particular brand consistently advertises using your published video content. Here, you may want to consider if the brand aligns with your values.
If so, you might want to connect with that brand to start a conversation about other YouTube monetization opportunities. For instance, you might look into the company’s affiliate marketing program.
Why Impessions Vary
Suppose you’ve qualified for the YouTube Partner Program. Now, your videos have become a part of YouTube’s advertising display network.
Advertisers will pay you a certain price every time someone watches or clicks their ad while viewing your video. The amount that you receive, however, will vary depending on the competition for advertising space.
Advertisers compete with each other and pay the highest price to show their ads. The process works like an auction.
Finding a High CPM Niche
If you’re not sure where to start, you might try using the Google Keyword Planner to help you to find a high CPM niche. Begin by navigating to the Google Keyword Planner Tool.
You must have a Google account to sign in. Once you’ve created your account, you can use the tool to search for trending keywords.
You want to look for the Discover New Keywords feature. You’ll type in your keyword and select a country.
When the results come up, you want to try to estimate which keywords might earn a higher CPM. You can carry out this task by looking at the bids on certain keywords.
Remember, however, this information will get you pointed in the right direction, but high Google AdSense bids won’t necessarily correlate to a high YouTube CPM. Still, the Google Keyword Planner Tool can help you to make a more informed guess.
Why Some Niches Perform Better
When it comes to earning a higher CPM, the most important thing that you can remember is, the more competition for a keyword, the more you’ll earn. Still, you might wonder what makes an ad space highly competitive for advertisers. As we’ve explained, many things can affect your CPM and RPM.
In general, however, you can expect to earn more in industries that generate a lot of revenue. These highly profitable companies can afford to spend more on advertising.
These kinds of industries have a massive number of advertisers that spend considerable money to outbid each other. This competition drives up your CPM.
Monetized Playbacks vs Views
You may have thousands of people viewing your videos. At the same time, those views may not reflect much ad revenue.
Here, you must remember that monetized playbacks and overall video views are two different animals. In nearly every instance, you’ll have more views than monetized playbacks.
Only views that imprint advertisements count as monetized views. Mobile views, ad blockers, simultaneous video views, and premium YouTube subscriber views can all eat away at your monetized views.
Boosting Your Impressions
In theory, you can increase your YouTube CPM and RPM. The easy answer is to get more ads placed for your videos.
Alternatively, you could try to target a country with a higher GDP and YouTube CPM rate. In reality, however, this method is impractical.
Given the opportunity, most internet users will skip just about every ad. You may worry about diminishing the viewer experience, but you’ll need to accept at least some non-skippable in-display video advertisements if you want to monetize your videos.
Don’t worry. Your viewers will understand. You have to pay the bills somehow, but you can make up for the ads with high-quality content.
The Right Niche for the Right Channel
It can prove challenging to find the right YouTube niche. Often, this problem arises due to a lack of knowledge and experience.
Many YouTube content publishers act on hunches. It’s hard to come by concrete facts for YouTube video monetization.
Our keyword planner tip, for instance, may give you an idea of where to get started. Still, AdSense bid competition doesn’t directly correlate to YouTube CPM.
Putting Niches in Perspective
On AdSense, the highest-ranking keywords in 2020 were attorney and electricity. You can probably imagine, however, that wasn’t the case over at YouTube.
They’re two different animals. The two platforms attract different audiences. You must learn to adapt to the needs of YouTube’s existing audience base.
Here’s where an expert in digital marketing can help.
Boost Your CPM With the Right Partner
Hopefully, you have a better understanding of YouTube CPM. If you want to boost your YouTube ads CPM, Media Shark can help.
Whether you need a winning marketing strategy for YouTube or any other digital platform, we have the experience to get you where you want to go. Please feel free to connect with us today to find out more about boosting your online marketing results.