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 audiences across the globe, it stands to reason businesses want to tap into this rich marketing channel. But do you know how much creators get paid?
Certain video niches have a higher payout, known as the CPM. Read on as we discuss CPM rates and the highest niches.
What Is a YouTube CPM?
There are a lot of advertisers willing to pay to have their marketing ads put on YouTube. When they do, the videos that are shown bring in revenue for the creator. This is calculated using CPM.
CPM is the amount paid every time an advert is shown 1000 times. How much they are willing to spend depends upon several factors. This includes the type of ad, bidding price, and consistency with which they are shown.
Be aware that CPM is not the final amount you are paid. YouTube itself takes 45% of any CPM revenue.
This can seem like a very small amount. Yet when you begin to clock up views on multiple videos, revenue can start to become quite high.
Why Do CPM Rates Vary So Much?
YouTube CPM varies due to competition. When a business chooses a video to advertise on, other companies will also be bidding for that ad space. The more competition there is, the higher the CPM becomes.
The more expensive Youtube Ads become, the more the creator gets paid. Certain niches have more businesses vying for advertising space. Yet with that comes more competition from other creators, who begin to upload content that caters to these niches.
Affiliate Marketing
This YouTube niche can bring a CPM of around $12 to $22 per 1000 impressions. Its ability to earn an income is based on a factor that many of the niches in this article share, which is that they concentrate on making people money.
Affiliate marketing is the practice of recommending a product or service. When viewers or readers decide to buy, they follow your link to the retailer’s site. You then receive a cut from the profit.
Everyone wants to get into affiliate marketing, making videos on the topic lucrative. How much you can make all depends on the competition. Part of this success is that you don’t need high numbers to get revenue if you find something that is both relevant and no one else is concentrating on.
Trading and Investing
This is another niche that gets customers from people wanting to make money. Technology has made investing and trading easier and there are a whole host of people looking for advice. With it comes a lot of competition.
$1.6 to $18 is a huge range and it all depends on the YouTube categories related to trading you decide to pursue. You could tell people how stocks and shares work, create weekly investment advice videos, or rank trading platforms and software.
Personal Finance
Personal finance covers quite a range of smaller Youtube categories. It could be advice on how to get rid of debt, or how to find the best mortgage. You could even go for ideas that are very simple such as how to save.
The sad truth is that many of these basic lessons you will teach are ones not taught in school. That is why personal finance can get a very high number of views, as people of all ages search for advice. Anything from $2 up to $12 can be the CPM for personal finance videos.
Print on Demand & Dropshipping
Print on demand is a fulfillment method that involves creating a printed product, usually clothing, that is made and shipped on demand. Dropshipping is similar. Your customers choose a product and it is shipped from a supplier direct, so you do not need to carry any stock.
Both of these methods have pros and cons which can fill their own article. Once more, they are related to making money. As there is a lot of competition in dropshipping, people are always looking for advice on how to get ahead and increase profits.
This means a lot of viewers for your videos. $2 to $14 can be the lowest and highest CPM for the niche.
Content Creation
Technology, social media, and remote working have managed to transform the way we consume information and entertainment. The biggest change is that people are now empowered to create their content, either through making videos, playing games, or giving advice. While it is possible to put a camera in front of yourself and hit record, people want to know how to make their content bigger and better.
People are more likely to listen to you if you have already had success. So if you are a streamer, blogger, or podcaster helpful videos on content creation can be a great sideline. Expect to net around $3 to $13 depending on the video.
Real Estate
Real estate is another area that people gravitate to so they can make money. Yet real estate has a practical application as well. People need homes to live in and making the first step is a big investment, so they want to get it right.
With real estate, most people watching videos already have money to invest, either as a mortgage deposit or money for a second property. This makes the traffic extremely high quality, pushing up competition and the CPM. From mortgage advice to renovating fix and flip properties, there are a huge number of topics you can cover.
CPM Rates
Simply knowing the highest CPM rates does not mean you can create content and earn money immediately. These niches work best if you have already built an audience or have a reputation. If not, you may need assistance crafting a long-term strategy.
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