What Is YouTube CPM? A Quick Guide

what is a youtube cpm

What Is YouTube CPM? A Quick Guide

Did you know that there are more than 37 million YouTube channels floating around on the internet right now? Whether you’re a YouTuber wanting to make money off of ads or an advertiser wanting to pay for YouTube ads and make some money in return, knowing about the concept of CPM is important.

With a better understanding of CPM, you won’t have any problems figuring out what a good CPM rate is or how to optimize your CPM advertising. But what is a YouTube CPM exactly? To start, let’s explore what CPM stands for: cost per mille.

What Is A YouTube CPM?

“Mille” is the Latin word for a thousand, so the meaning of CPM really means “cost per thousand.” The “thousand” in this case has to do with the number of advertisement impressions your ads get. Specifically, CPM is the measurement of exactly 1,000 ad impressions on a single website page. 

CPM is actually not only a measurement of ad impressions but it is also a way to measure how much money you might be spending per 1,000 ad impressions. For example, if you are an advertiser and you want to buy up a piece of ad space, you will have to go to an ad publisher in order to do that. When you go to an ad publisher, the publisher will have a certain rate for that ad space that you will have to pay. 

A typical case would be paying around $2.00 per every 1,000 ad impressions for that particular piece of ad space. So, every time a particular ad gets 1,000 impressions, the ad publisher will get $2.00 richer and the advertiser will lose $2.00 to the advertisement space. $2.00 is a pretty typical price to pay for a piece of ad space. 

Some ad spaces may be cheaper and others may be drastically more expensive when it comes to the CPM. Why might the cost fluctuate so much, you ask? CPM is determined via a variety of factors on YouTube as well as the rest of the internet. 

By knowing more about how certain factors affect CPM, you can plan how to use your money in the best ways and how to save money too. One of the most important factors that affect CPM is the industry you are trying to market your brand. 

Impressions And Factors That Affect CPM

As you may already imagine, impressions are important when it comes to CPM. But what are impressions exactly? Many people mistakenly think that ad impressions are only clicks, but impressions actually go far beyond that. 

Impressions can include how many times a given ad is seen, how many times people click on that ad, and even how many times people click on the ad and then buy something from the website. Most of the time, views and clicks are the most counted ad impressions, although other ad price models may prefer to count purchases from ads. Impressions are very important because they can tell you a lot about how successful an ad is and if the money you’re spending for that ad is giving you a good rate of return. 

Let’s return to the subject of a particular industry determining the CPM. Certain industries are more popular than others and more popular industries tend to have higher CPM. This may sound unfair to you but think about it for a moment. 

For example, the clothing industry is much more popular than the industry for industrial valve lubricants. Many more people are going to be interested in buying pieces of clothing than valve lubricants. So, even though you might pay a bit more for ad space in the clothing industry, you are more likely to make back your ad money and then some. 

On the other hand, the CPM for ads in the industry of valve lubricants will be lower. Because there will be fewer people buying supplies of this kind, you still will make back your money because you didn’t pay much in the first place. So, no matter what industry you might be marketing in, the CPM rates are more or less balanced. 

More Factors That Affect YouTube CPM

The ad prices for YouTube ads can vary as drastically as ads elsewhere on the internet. If you want to run ads and really get deep into CPM advertising, you should know that the better the piece of ad space, the more money you should expect to spend. The best ad space will be the most popular and it will be shown on the most popular videos. 

The best ad space is also highly competitive. After all, it only makes sense for many different advertisers wanting the same great piece of ad space for their own brand advertisements. The more competitive a piece of ad space is, the more expensive it will be. 

Even the seasons can affect the price of YouTube CPM. You’ve no doubt noticed a huge influx of Christmas ads on YouTube every time Christmas starts to get near. This is no accident. Companies know that as Christmas approaches (along with other holidays), people want to buy things for the holidays. 

Ads are a perfect way to get business from people who are already in the market to buy various things. However, the CPM for seasonal ad space tends to be quite high. Even so, the results are often so good that the CPM hardly matters at the end of the day. 

Everything You Need To Know About YouTube CPM 

If you were wondering, “What is a YouTube CPM?” you should now know all about it and its importance. By taking advantage of CPM rates on YouTube, you can always make sure you get the most out of your ads.

To learn more, contact us here.

Related Posts

YouTube Ad Revenue Calculator
YouTube

The Ultimate YouTube Ad Revenue Calculator

Whether you’re just starting out or already working with a strong following and viewership base, understanding YouTube ad revenue can be tricky, especially if you

digital marketing budget
Marketing Agency

How to Make a Digital Marketing Budget

How to Make a Digital Marketing Budget In 2020 the digital marketing and advertising industry was estimated to be worth more than $350 billion. By 2026

digital marketing ads
Marketing Strategies

Making Your Digital Marketing Ads Stand Out

Making Your Digital Marketing Ads Stand Out: Design Tips That Work Around 5 billion people (63% of the population) worldwide use the internet. For almost any business

instagram vs tiktok
Marketing Strategies

Marketing on Instagram vs. TikTok: Which Is Better?

Marketing on Instagram vs. TikTok: Which Is Better? There’s a reason why there are nearly one million marketing specialists found in the United States. These days, it’s

traditional marketing vs digital marketing
Marketing Strategies

Traditional Marketing vs. Digital Marketing

Did you know that more than four billion people regularly use the internet? Keep reading to learn more about the differences between traditional marketing vs. digital

diversity marketing
Marketing Strategies

What Are the Benefits of Diversity Marketing?

What Are the Benefits of Diversity Marketing? Diversity in marketing is not just about employing people from different backgrounds, it’s also about using a range

Social Media Ads
Marketing Agency

Social Media Ads Ranked from Best to Worst

Social Media Ads Ranked from Best to Worst Social media is one of the most impactful developments of this century, with more than 70% of Americans having

CPM rates
Media Shark

What YouTube Niches Have the Highest CPM Rates?

What YouTube Niches Have the Highest CPM Rates? Youtube made $19.7 billion in revenue last year, mainly by selling advertising space. As a platform that fosters connections with

youtube trends
YouTube

6 Important YouTube Trends for Businesses

6 Important YouTube Trends for Businesses The world’s largest video-sharing platform, Youtube, boasts a staggering 1.9 billion monthly users, with over 5 billion videos watched every day.

youtube seo
YouTube

YouTube SEO: How to Get Your Videos to Rank

Did you know that YouTube has released several new features to help content creators increase their ranking? Starting an advertising campaign on social media platforms like YouTube

youtube ads
YouTube

The Essential Guide to YouTube Ad Campaigns

Did you know that social media marketing is quickly replacing TV ad campaigns? Social media platforms like YouTube garner millions of views every single day from around

how to advertise on YouTube
YouTube

How to Advertise on YouTube: 8 Essential Tips

How to Advertise on YouTube: 8 Essential Tips Did you know that social media marketing is becoming an in-demand niche for marketing firms across the globe?  Advertising

types of SEO
Uncategorized

What Are the Different Types of SEO?

What Are the Different Types of SEO? Starting your optimization journey? Pretty overwhelmed by all of the acronyms and marketing terminology? Thought so. The best

YouTube SEO
SEO

YouTube SEO: 9 Key Things to Remember

YouTube SEO: 9 Key Things to Remember Is video content important for your marketing? Absolutely. The amount of online videos that people have watched has nearly

managed SEO
SEO

7 Reasons to Hire a Managed SEO Company

7 Reasons to Hire a Managed SEO Company for Your Business In the United States, 65% of small business owners have worked with an SEO provider at

YouTube CPM
YouTube

YouTube CPM: Things That Affect Your YouTube Revenue

YouTube CPM: Things That Affect Your YouTube Revenue Youtube, the world’s largest video-sharing platform, boasts a whopping 122 million active users every day. For most people, Youtube

how much does SEO cost
SEO

How Much Does SEO Cost on Average?

How Much Does SEO Cost on Average? Did you know that the first result of a Google search tends to get more than 31 percent of

enterprise seo
SEO

7 Key Benefits of Enterprise SEO

7 Key Benefits of Enterprise SEO Over 50% of all website traffic comes from an organic search. In fact, nearly 70% of online experiences start with a

tiktok marketing
TikTok Advertising

How to Advertise Your Business on TikTok

How to Advertise Your Business on TikTok TikTok now has over 1.5 billion users in total. The app even added 500 million users within less than a

benefits of local seo
SEO

7 Major Benefits of Local SEO

7 Major Benefits of Local SEO 46% of all searches on Google are people looking for local information. Many of the people doing these local searches

YouTube CPM
Media Shark

What Are the YouTube CPM Rates in 2022?

What Are the YouTube CPM Rates in 2022? Did you know that YouTube receives more than 2 billion viewers every month? With numbers like that, it’s not

seo trends
Marketing Strategies

7 SEO Trends to Look Out for in 2022

7 SEO Trends to Look Out for in 2022 SEO: it’s one of the most important parts of your website. Even the best digital marketing

managed seo
Media Shark

7 Major Benefits of Using Managed SEO Services

7 Major Benefits of Using Managed SEO Services Building your online presence while keeping your company running may feel impossible as you’re starting. However, your

digital ads
Media Shark

7 Tips To Dominating Digital Ads

7 Tips To Dominating Digital Ads Are you tired of spending all of your money on digital ads that aren’t bringing new leads? If you

google display ads
Programmatic

A Beginner’s Guide to Google Display Ads

A Beginner’s Guide to Google Display Ads Google Display Ads: are you looking to get started? Whether you’re not familiar with display ads or you

ott
OTT

What Is OTT Advertising?

What Is OTT Advertising? OTT, or over-the-top advertising, is changing how the digital marketing world works. The days of cable TV commercials are almost over,

how much are youtube ads
Uncategorized

Online Advertising: How Much Are YouTube Ads?

Online Advertising: How Much Are YouTube Ads? Netflix has been dethroned.  No, not by rival streaming programs like Amazon. But by YouTube, to the tune of

SEO for dummies
SEO

SEO For Dummies

SEO For Dummies Did you know that there are more than 1.7 billion websites floating around on the internet right now? Are you looking for the guide

advertising on youtube
Programmatic

A Beginner’s Guide to Advertising on YouTube

A Beginner’s Guide to Advertising on YouTube Google now owns about 92% of the global search market share. You’re no longer limited to creating text ads,

enterprise seo
Media Shark

What Is Enterprise SEO? A Quick Guide

What Is Enterprise SEO? A Quick Guide Compared to traditional ad campaigns, leads through SEO are eight times more likely to convert. A strong SEO strategy can

audio ad
Marketing Strategies

How to Measure an Audio Ad

Are you looking for an inexpensive way to connect with your potential clients but feel like you’re out of ideas about what to try next?

podcast advertising
Marketing Agency

7 Benefits of Podcast Advertising for Your Campaigns

Podcast advertising enables businesses to capitalize on the emerging audio industry. It provides a creative outlet for companies to reach customers. Podcasting has gained significant

display ads
Media Shark

How To Use Display Ads To Your Advantage

The value of the global advertising market is expected to reach $769.9 billion by 2024. When so many businesses have easy access to effective digital channels, it becomes even

TikTok Ads
TikTok Advertising

Is It Worth Investing in TikTok Ads?

Are you thinking of adding TikTok Ads to your advertising strategy? If you consider TikTok a kid’s app for uploading silly videos and watching funny

online video
Marketing Agency

Why the Future of Advertising is Online Video

About 80% of people recall a video they’ve watched within the past month. Meanwhile, 55% of people engage with online video every day. Videos get shared 12

integrated marketing
Marketing Agency

The What, Why and How of Integrated Marketing

Approximately 49% of businesses in the US, use digital marketing to promote their products and raise brand awareness. That’s about half of all businesses in the US,

retargeting
Media Shark

What Is Retargeting and How Does It Work?

Have you ever browsed a product on a website and then seen that same product following you around the internet for weeks afterward? That’s retargeting

online video advertising
Uncategorized

Online Video Advertising in 9 Simple Steps

Did you know that video marketing is used by 86% of businesses to improve brand awareness? Approximately 87% of video marketers have reported that video ads

Native Advertising Work
Marketing Agency

How Does Native Advertising Work?

Did you know that 90% of consumers still term targeted ads as annoying, despite advertisers tailoring them to their needs and interests? Keep reading to understand how

seo companies
Marketing Agency

How SEO Companies Can Help Improve Your Company

According to research, the first organic google result gets an average CTR rate of an impressive 28.5 percent. The second position garners about 15 percent, the

ad campaign
Programmatic

How to Develop a Successful Online Ad Campaign

According to research, global advertising surpassed a hefty $559 billion, which means online ads are fierce competition. Creating a successful ad campaign could seem intimidating, to

YouTube CPM Calculator
YouTube

YouTube CPM Calculator

YouTube CPM Calculator Imagine getting to make more money from your YouTube videos as a creator. Or if you’re an advertiser, think about what it

youtube cpm
YouTube

Everything You Need to Know About YouTube CPM

Viewers are shifting their focus from pay-per-view video streaming to online platforms. YouTube has seen a steady increase in subscribers and users over the past

ad exchange
Programmatic

What is Ad Exchange and How Does It Work?

What is Ad Exchange and How Does It Work? This year the digital ad space defied all pandemic-related odds and rebounded 12%. When breaking the

ad network
Programmatic

How to Incorporate an Ad Network Today

How to Incorporate an Ad Network Into Your Marketing Campaign When the Internet first became prominent, some businesses saw the writing on the wall and

Cookies
Marketing Strategies

Google Guides: Are Cookies Going to Be Banned?

Google Guides: Are Cookies Going to Be Banned? Did you know that Google makes up 56% of the web browser market? Additionally, it also accounts

Audio Ads
Programmatic

Listen Up: What Are YouTube Audio Ads?

Listen Up: What Are YouTube Audio Ads? YouTube is a $15 billion a year ad revenue business.  And that will grow even more with YouTube music audio

YouTube Ad
Marketing Strategies

Ad Answers: How Much Does a YouTube Ad Cost?

Ad Answers: How Much Does a YouTube Ad Cost? Did you know that YouTube gets 30 million visitors every day? This makes the video-sharing platform the biggest

digital marketing trends
Uncategorized

5 Digital Marketing Trends For 2021

5 Of 2021’s Biggest Digital Marketing Trends In 2020, digital marketing surpassed traditional marketing in revenue generated. That trend didn’t reverse in 2021, and it doesn’t look

youtube ads
YouTube

Everything You Need to Know About Youtube Ads

YouTube advertising is effective. 80% of brands reported a higher return on investment from advertising on YouTube than on TV. All video ads stay in a person’s

YouTube

YouTube CPM: What Is a Good CPM for YouTube Ads?

With more than 2.3 billion users and growing, YouTube remains one of the largest platforms out there. If your business isn’t taking advantage of this exposure, you

Marketing Strategies

Media Shark: What is Display Advertising?

Apparently, the average American sees more than 5,000 adverts a day. Display advertising can be the key to helping you grow your business today! If some

ppc specialist
ppc specialist

The Benefits of Outsourcing a PPC Specialist in 2020

About 45% of small businesses are already using pay-per-click (PPC) search marketing. If you’re not, you’re already falling behind your competitors. With PPC advertising, you can generate

Programmatic

Video Marketing With Media Shark

Having custom video content for your business would truly take your digital marketing efforts to the next level and Media Shark is your premier video

Marketing Strategies

8 Benefits of Mobile SEO with Media Shark

There is no doubt that search engine optimization is vital for a successful marketing strategy, but people aren’t using desktops for search anymore. You need

Marketing Agency

Mobile SEO with Media Shark for Small Businesses

There is no doubt that search engine optimization is vital for a successful marketing strategy, but people aren’t using desktops for search anymore. You need

Marketing Agency

7 Common WordPress Mistakes You Need To Fix

WordPress is a fantastic tool for building websites. It has a number of options for customizing and enhancing features. It is easy to use for

wordpress design company
Wordpress Design

Your Guide to WordPress Design Company in 2020

WordPress is behind at least 30% of the internet, which amounts to around 455 million websites. It has the largest share of all platforms, making it

Media Shark

How Does Media Shark Plan for a Product Launch?

How Does Media Shark Plan for a Product Launch? Almost 75% of product launches fall short of projected profits. Some even fail, especially within the programmatic space.

Uncategorized

YouTube Advertising 101: Getting Started

With two billion users logging in monthly, YouTube is the world’s second-largest social media platform. If you’re looking to reach a new audience or add a new

Uncategorized

8 Great YouTube Advertising Ideas

8 Great YouTube Advertising Ideas for Your Business Did you know there are over two billion active monthly YouTube users? That means you could get millions of

Uncategorized

How to Optimize YouTube Ads

How to Optimize YouTube Ads: The Guide You Need Youtube has more than 2 billion unique visits every month, and according to Youtube’s CEO, that number is

Marketing Agency

Signs It’s Time to Switch Marketing Agencies

Many businesses hire marketing agencies expecting top-notch results. In reality, this isn’t always the case. This is especially true when it’s your first time hiring

Uncategorized

Online Marketing Strategies to Help You Win

Online Marketing Strategies to Help You Win The internet is a popular place and has attracted 40% of the world’s population. That’s more than 4.5 billion people

What Does RTB Stand For?

What Does RTB Stand For? RTB stands for real-time bidding, it is has become a popular method that advertisers use to place ads online. However, you may

YouTube CPM
YouTube

What Is a YouTube CPM Rate?

What Is YouTube CPM? Since launching in 2005, YouTube has become one of the most influential platforms in internet history. Which is why advertisers like

online marketing strategies
Marketing Strategies

Online Marketing Strategies to 10X Your Advertising

Online Marketing Strategies to 10X Your Advertising The internet is a popular place and has attracted 40% of the world’s population. That’s more than 4.5 billion people

demand side platforms
RTB

RTB Marketing and Demand-Side Platforms

Demand side platforms or also known as DSPs are changing the marketing game forever and the same can be said for real time bidding. Two

programmatic platforms
Programmatic

The Truth About Programmatic Platforms

The 101 on Programmatic Platforms The digital advertising domain is growing complex and the same can be said within what exists within the programmatic platforms.

Tampa marketing agency
Marketing Agency

How to Find the Right Tampa Marketing Agency

How to Find the Right Tampa Marketing Agency With the emergence of the internet, nearly anything seems possible for businesses. Just like the lottery, anyone

programmatic platforms
Programmatic

Programmatic Platforms and RTB Marketing

Programmatic Platforms and RTB Marketing The digital advertising domain is growing complex. As a result, many marketers have turned to programmatic platforms and RTB marketing.

youtube cpm
YouTube

YouTube CPM Rates: What you Need to Know

That funny cat video you just watched on Youtube might just be making someone some very real cash. Your business can benefit from that exposure,

demand side platform
RTB

Full Breakdown On What Is a Demand Side Platform?

101 Guide To What Is a Demand Side Platform Ahead of all other media channels, programmatic advertising is growing the fastest. But does this help your business? You’ll want

ppc specialist
Marketing Strategies

11 Skills Your PPC Specialist Should Have

Did you know that 7 million advertisers invested a total of $10.1 billion in PPC? That’s a clear indication of how crucial it is! Having the right