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 would be like to get more traffic and sales from YouTube.
Either way, you should consider using a YouTube CPM calculator. The tool is an amazing resource to help you estimate your earnings or develop a realistic ad budget.
Read on to learn how the calculator can help.
How Do YouTube Ads Work?
One of the most important factors to consider before using a YouTube CPM calculator is to know how ads work on the platform. Advertisers choose the video to use as the ad and develop a budget for their advertising campaign.
They will also set bids for specific keywords as well as the maximum amount of money they will spend for a click or 1,000 views (CPM). When someone clicks on a video, Google will host a quick real-time auction.
The ad that wins the auction will appear in front of the video. As long as the advertiser chose the right keywords, the ad should be relevant to the content.
Viewers will see the ad, and they can choose to skip it if it’s a skippable ad. Then, they can watch the video, and the video creator can take a cut of the cost of the ad, while YouTube takes the rest.
Why Use a YouTube CPM Calculator
Whether you’re looking to use YouTube ads or put them on your videos, you may want to use a YouTube CPM calculator. This kind of tool is more common among creators to help estimate their earnings and get the best CPM possible.
However, you can also use it as an advertiser to get an idea of the reach you could receive from your ad. Then, you can decide if you need to increase your budget or if you can get the results you want from your current budget.
You can calculate your CPM manually by using your analytics. But that can take a lot of time, and it can be hard to get an accurate number, especially if you type something incorrectly.
Either way, you should consider a few reasons why you may want to use a YouTube money calculator.
Estimate Your CPM
As an advertiser, you can use a YouTube CPM calculator to estimate how much you’ll need to spend on ads. You can figure out how many views your ads may get when you spend a specific amount.
This is an excellent way to figure out if your budget is what it needs to be to reach your advertising goals. You can play around with different numbers to see what you’d need to spend to reach a certain audience.
If you create videos, estimating your CPM can help you plan for your own income and expenses. The calculator can tell you how much you may make from your current videos if you want to take time off.
It can also be a great tool to help you adjust your content. That way, you can find ways to increase your YouTube earnings without having to take on sponsors or other deals.
Prepare for Monetization
If you’re ready to apply for monetization as a creator, a YouTube CPM calculator will come in handy. You can plug in your analytics to figure out how much you can earn after you become a member of the YouTube Partner Program.
That way, you won’t set yourself up for huge expectations from your first YouTube paycheck. Alternatively, you can decide to change your strategy on YouTube to make more money.
Another way to use the calculator is to decide if you want to change niches. Some videos make much more money than others with the same number of views.
So if you’re trying to decide between a couple of topics, you can use the calculator to predict your earnings. That can help you choose one niche over another.
Adjust Your Content
If your current CPM is a bit lower than you want as a creator, you can create content to either get more views or to increase your CPM. Think about the types of advertisers that may want to put ads on your videos.
Consider if they would be willing to pay a lot of money or not. If your videos have a lower CPM, you may choose to make a video in a similar topic to your current content but that may pay more. Or you can work to get more views to make more money.
Advertisers can also use a YouTube CPM calculator to help change their content. For example, your video may get a lot of views, but those views don’t turn into clicks or sales.
That can tell you to either try and use a different video for ads. Or you might decide to retarget the ad to a different audience who will be more likely to click.
Optimize for Search
Creators can also take advantage of search engine optimization (SEO) on YouTube. If you don’t get a ton of views from search, you may want to change your titles so that they are more searchable.
While this may not directly affect your CPM on current videos, it can help you get more views. You can also use SEO when coming up with title ideas for new videos.
That way, you’ll be able to bring in more traffic to your channel. When that happens, you can use a YouTube CPM calculator to estimate how much your earnings will increase.
Advertisers can also figure out which keywords to use to help select videos to advertise on. That way, they can reach their ideal audience and increase their chances of making a sale.
Post More Videos
Calculating CPM for videos can also help creators decide if they should post more content. The more videos you have on your channel, the more views you’ll be able to get.
Posting more videos may not increase your CPM unless you change the type of content you create. However, you can add the extra views those videos get when using a YouTube CPM calculator.
Knowing your YouTube CPM can help you be more strategic about your videos and channel. Then, you can help grow your channel to get more eyes on your content and more money in your pocket.
Promote Your Videos More
If you aren’t getting a ton of traction on YouTube, a YouTube CPM calculator can show that. For example, you may be halfway through a month and not quite on track to reach your earnings goal.
In that case, you may choose to promote your videos on Twitter, Instagram, or TikTok. You can direct people to your channel, and you may be able to get views from people who wouldn’t have watched your content otherwise.
Advertisers who have more money to spend may use a CPM calculator to learn about that. Then, they can increase their bid or add on a new advertising campaign.
Either way, knowing your YouTube CPM is crucial if you want to increase views on your video or ad. Sometimes, all it takes to get that is a bit of promotion.
Benefits of YouTube Ads
Regardless of the CPM, you should consider a few benefits of using YouTube ads. Now, advertisers have a few more benefits than creators, but both parties should still consider using them.
If your CPM is lower than you’d like, you can still enjoy the advantages of having YouTube ads play on your videos. On the advertising side, you can also enjoy some benefits even when your CPM is higher than you may want it to be.
Either way, advertising on YouTube is a great way to build a business. Then, you can get more customers and increase your revenue as long as you go about advertising the right way.
Take a look at some of the benefits of YouTube ads for both creators and advertisers.
The most obvious benefit of YouTube ads for creators is that they can make money. You can decide on which videos to place ads, so you can make money whenever someone watches the ad.
Ads can be an easy way to make income on YouTube since they don’t require as much work as getting sponsorships. And if you can increase your CPM, you can make more money without needing more views.
However, advertisers may also make more money from investing in YouTube ads. As long as you target your ads to the right people, you can get viewers to click and buy something from you.
Then, you may be able to make more money than you spent on the ad in the first place.
Another benefit of advertising on YouTube is that you have the chance to reach billions of users. Not only that, but you can reach people who are more likely to want to buy what you have to sell.
Of course, you can get some reach if you advertise on other platforms with or without paid campaigns. However, YouTube offers a ton of opportunities to reach your ideal client.
Google offers plenty of options to tailor your advertising campaign to reach the right people. That way, you don’t have to waste your advertising budget on people who won’t buy from you.
Now, your ad may show up for people who wouldn’t buy from you. Still, YouTube ads can be a great way to build awareness, so someone who views your ad may tell someone they know about your business.
As you start to use YouTube ads, you can learn about the people who see them. Then, you can figure out if you’re targeting the right group of people or if you need to change something.
You’ll also be able to learn if the type of ads you’re using are the right type. If not, you can change the types to see if that will increase your YouTube CPM.
The same thing applies to YouTube creators. If you find that users are skipping all of the skippable ads, you may want to start running some non-skippable ads to increase your earnings.
Advertisers may learn that they should create shorter video ads. Then, they can use non-skippable ads to increase view time and get people to learn more about their company.
Targeting and Retargeting
Targeting and retargeting are some of the most important aspects of an ad campaign. You can use targeting to narrow your ad’s reach to people based on factors like their age, location, and interests.
However, retargeting can be especially powerful. If someone watches your YouTube ad and clicks on your site, you can track that person’s activity.
Then, you can show them a similar ad to keep your business on top of their mind. You may even get them to click on your site and buy something the second or third time they see your ad.
Google allows advertisers to target their ads to their people. Creators can then benefit from this because the ads will be relevant to their content, which can help maintain the interest of viewers.
Ability to Change
Another advantage of YouTube ads for both advertisers and creators is the option to change what doesn’t work. If an advertising campaign isn’t getting results or is costing too much, the advertiser can adjust.
They may choose to use a different video as the ad, or they might increase or decrease their maximum bid. Then, they can test out a new strategy to see if it works.
Creators can also go into their account and change what types of ads show on their videos. They don’t have control over the specific ads, but they can choose to use skippable ads, non-skippable ads, or other types.
That way, creators can show the right types of ads to their views to keep people on their videos.
Steps to Monetize Your Videos
If you’re looking to use a YouTube CPM calculator as a creator, you need to monetize your videos. The steps to do so may seem obvious, but a lot goes into making money from the ads that show on your videos.
Of course, you can make money from things like sponsorships or affiliate marketing. But if you want to enjoy the benefits of YouTube ads, you need to qualify for and join the YouTube Partner Programs.
Consider the following steps to prepare your channel for monetization.
Meet the Requirements
The most important step of monetizing your YouTube videos is to qualify for the monetization program. You have to live in a country that participates in the YouTube Partner Program.
If your channel has any Community Guidelines strikes, you won’t qualify. You’ll also need to have at least 1,000 subscribers, and you will need to have received at least 4,000 watch hours in the last year.
To meet these requirements, you can promote your YouTube channel on other social networks, such as Twitter or Instagram. Share links to all of your new videos and ask people to watch and subscribe.
That way, you can get to the required subscriber and watch hour counts. Soon enough, you’ll be able to start making money from your channel.
Create and Connect an AdSense Account
If you don’t have one already, you will need to create and connect your Google AdSense account to your YouTube channel. You will need this when you apply for monetization, so feel free to set it up whenever.
Also, you can’t have more than one AdSense account, and you should receive an alert if you do. That way, you’ll know to close your second account so that you can continue with the first one.
You can use the same Google account as your YouTube account since Google owns YouTube. Then, you won’t have to worry about taking as many steps to connect the two accounts.
Choose the Types of Ads
Once YouTube accepts you into the partner program, you will get to choose what types of ads to show on your videos. You can choose to show skippable or non-skippable ads.
If you want a higher YouTube CPM, you may want to consider showing non-skippable ads. They can be annoying to viewers, but they can also pay more than an ad that people don’t have to watch all the way through.
Consider showing multiple types of ads on your videos. Then, you can make money from the ads that play before your videos, but you may make money from display ads that pop up on the video or next to it.
You can research the potential CPMs for various ad types to estimate your earnings. That way, you’ll know which types of ads can help you make the money you want to make.
Select Videos to Monetize
Now, you have the exciting task of choosing which videos to show ads on. The videos you select need to be advertiser-friendly, so they shouldn’t have violent content.
Your videos also shouldn’t infringe on copyright or have similar issues. As you create videos for your channel, make sure to stick to copyright-free music or use music you create.
That way, you can make sure advertisers will want to put ads on your content. If your videos are somewhat violent, you may need to change your niche.
No matter the problem, it’s okay not to monetize all of your videos. But the more videos you do monetize, the higher your earning potential will be on YouTube.
How to Set Up YouTube Ads
If you want to focus on advertising on YouTube, you should know how to set up YouTube ads. That way, you will be able to run a campaign and see how accurate a YouTube CPM calculator is.
Setting up ads can take a lot of strategy, and it can help to hire someone to manage your campaigns. But if you want to test the waters yourself, you can follow a few steps.
Then, you can give your ads the best chance of showing up in front of the right viewers. When that happens, you can increase the chances of turning those viewers into customers.
Consider the steps to set up your first or fifth YouTube video ad.
Upload to YouTube
First, you will need a YouTube channel where you can upload the video you want to use as an ad. Go to your account to upload the file and add any details, such as a title and description.
You can then post the video immediately or if it makes sense, you can schedule it to go up at a later date. However, posting it immediately will allow you to include the video in an advertising campaign right away.
Either way, make sure your video looks good. You can edit the video in a program on your computer, and you can make small edits to the video using YouTube’s editor.
Once you’re happy with the video, publish it to your channel. Viewers will be able to see it if they visit your channel, so you can start getting clicks without having to pay.
Create a Google Ads Campaign
Next, you need to go to your Google Ads account to create a campaign. In your account, you will see a button that says “All Campaigns” which is what you should click.
Then, you will click on the + button to open up a new campaign. Google offers a few types of campaigns, so you will need to click on Video to create a YouTube ad.
If you want the ad to show up elsewhere, you could create a universal ad. However, you should stick to video for your first campaign.
Once you figure out how everything works, you can add on new types of ads. But for now, keep it simple so that you don’t stress yourself out.
Choose Your Advertising Goal
After you select the type of ad, you can choose your goal for the campaign. The first option is to generate leads, so you can help increase conversions using videos ads that play before content on YouTube.
If your goal is to get website traffic, you can use the same types of ads to reach that goal. Brand awareness and reach is another goal you can select, and you can achieve it with videos or display ads.
You can also set “product and brand consideration” as your main goal, and you can show your ads in YouTube search as well as on videos. If none of those goals work for you, you can also run a campaign with no goal.
However, having some sort of objective can help you track the campaign’s success. Then, you can determine if you need to change something to get better results the next time.
Configure the Settings
The next step in setting up your YouTube ad is to configure the campaign settings. First, you will need a name that describes your campaign and makes sense to you and your team.
You should also refer back to your budget to decide on how much you want to spend on average each day. It’s okay to start small and scale your campaign as it brings in results.
Another setting you can configure is if you want to use standard or accelerated delivery. Standard will show your ads throughout the day, while accelerated will show them at any chance.
You’ll also have the option to choose a start and end date, which can be nice if your ad is for a seasonal sale. Be sure to decide what types of ads to use, such as videos or display ads.
The settings also allow you to select the languages and locations of your target customers. You can then choose the bidding strategy, such as CPM.
Finally, you’ll want to choose the type of content on which to show your ads. You can choose from a limited, standard, or expanded inventory.
Select the Audience, Keywords, and Topics
The next few screens focus on the audience and keywords for your YouTube ad. You can choose the genders, age groups, parental status, and income status of the viewers.
Take it a step further and input information about your customers’ interests and hobbies. You can also figure out what they’re actively searching for. Finally, add details if people have interacted with you before.
After that, think about the keywords your ideal audience will search for. Then, you can include those keywords to make sure your ads show up on the right videos.
Another way to narrow the targeting is to choose topics related to your ad or business. Categories to choose from include arts and entertainment, finance, and health.
You’ll also have an option to choose where on the video you want your ad to be, such as in the video feed or as a display ad. If you don’t choose anything, YouTube will choose for you.
Choose the Video
Now, you get to connect your video ad to the campaign. You’ll need to open your YouTube channel to capture the link to your video, or you can search for it by the title.
Alternatively, you can upload your video at this step. That can be a great option if you forget to upload it at the beginning, but it’s also nice if you have multiple people working on the ad.
While one person finalizes a video, another person can start the campaign. Then, you can upload the video when it’s ready to go.
If your video isn’t ready to upload yet, you’ll need to pause the creation of your ad campaign. Wait until your video is on YouTube, and you can return to finish off the steps.
Adjust the Video Ad
Google will use all of your settings for the campaign to determine which formats will work. Video formats include in-stream, video discovery, bumpers, and outstreams.
At this point, you’ll want to add any URLs and calls-to-action (CTAs) for the ad, such as to click on your website. You can even add a headline to make your ad more intriguing.
Viewers using a computer will also see a companion banner, and you can autogenerate that from your channel. If you want, you can upload a separate image.
After you finish this step, you will be able to save your campaign, and it will be ready to start running. If you set a later start date, it will sit until that day arrives.
What Affects Your Earnings on YouTube
Multiple factors can affect your YouTube earnings as a creator. The same factors may also affect the conversions and earnings that come from the ads you pay to run.
Creators don’t have a ton of control over their YouTube CPM. There are some things you can do to increase it, but you should consider the best ways to increase your CPM without sacrificing your content.
On the other hand, advertisers have a lot of control over their CPM, especially when setting a maximum. But it can be hard to determine what that CPM will get you in terms of customers.
No matter which group you’re in, you should consider the elements that can affect how much you’ll make on YouTube.
The most obvious factor that will increase or decrease your earnings is the number of views a video or ad gets. If a creator gets a million views, they will most likely make more than a creator who gets a thousand views.
A lot goes into getting views, such as choosing the right video topic and optimizing the title for YouTube search. Just because you have a ton of subscribers doesn’t mean you’ll get more views.
On the advertising side, you have to think about how many people will see your ad. If you can afford to show your ad to more people, you may want to do so.
As long as your ad is interesting and gets people to click, you may be able to make back the extra investment. Then, you can continue to reach more people.
Your niche or industry can also affect your CPM and earnings on YouTube. For example, industries like business and finance tend to have much higher CPMs on average than other niches.
Advertisers in those niches usually have bigger budgets and can afford to pay more. But don’t switch to creating finance content just to get more money in advertising fees.
If you want to continue to make money on YouTube, you need to be an expert on your topic. Viewers won’t want to watch someone struggling to talk about finance.
So even if your CPM is lower, you may make more money because people trust you and want to keep watching.
Advertisers should also consider their industry when setting a budget. If you want people to see your ads, you need to be competitive, so consider researching average budgets in your field.
The Number of Ads
A factor that primarily affects the earnings of creators is the number of ads in their videos. YouTube lets creators include multiple ads in videos over a certain length.
So you can include an ad at the beginning, end, and in the middle. If your content is a bit longer, you may be able to get away with including more than one ad during the video.
However, you don’t want to include an ad too often or you could lose viewers. When that happens, you may not make as much money as you would have if your video only had a couple of ads.
So put yourself in the position of the viewer. Consider how often you’d accept watching an ad to keep watching the video. You can even place ads before a big reveal to keep people on your video so that you can earn a bit of extra money.
Types of Ads
When choosing the types of ads to use as an advertiser, you should consider what each type may cost you. In most cases, you’ll need to pay more to show a non-skippable ad than a skippable ad.
The length of the ad can also affect the cost. If you want to use a non-skippable ad without it being too expensive, you can create a bumper ad that’s a few seconds long.
You can also use display ads that aren’t too intrusive, and they won’t stop the video. But you can still get your brand to show up next to a video, so you may get more views.
Consider your overall advertising strategy when setting up an ad campaign. You may want to test out a few ad types at first and run them all for a short period.
Review the results and do more of what works, and stop doing what doesn’t work as well. Then, you can keep from wasting money on ads that won’t convert into sales.
You should also think about the location of the advertiser, creator, and viewer. American companies will usually have more chances to advertise because there are a lot of American creators and viewers.
As an advertiser in the United States, though, you can expect to pay more to show your ads to American viewers. If you’re a creator, views from American subscribers will usually pay more than views from people in other countries.
Whether you’re a creator or advertiser, consider your ideal customer and where they live. Creators can then figure out how to attract more viewers from countries with higher CPMs.
Advertisers can use location to make sure they’re targeting the right people no matter what. Because while advertising to someone in India may be cheaper, they may have a lower chance of buying from you.
Location targeting can be an excellent way to get the right viewers to see your video or ad. Then, you may be able to make more as a creator or generate an extra sale as an advertiser.
You Audience Demographics
Other demographics can also matter along with the location of viewers. Consider how old your audience is, what job they have, or if they’re in college.
You can also figure out what your audience likes or doesn’t like. Then, you can account for those things in your ad targeting and in the content of your video ad.
If your audience tends to include high-income households, you may want to increase your ad budget. You’ll probably have an easier time selling to those people than to broke college students.
Now, you don’t need to change the demographics of your target consumer. But you should take those into account when creating an ad and setting a budget.
Creators can also use their audience demographics to decide what topics to cover in videos. Then, their videos can appeal to advertisers, and they can make more from their content.
As weird as it may seem, the time of year may also affect how much you can earn on YouTube. For example, the end of the year is a popular time for advertisers to run campaigns on YouTube.
People are more willing to buy, so it’s worth spending money to get those visitors to your site. Creators can then make more money from the increase in ads and the higher ad budgets.
However, there can be a sharp decrease in ad spending after the holidays are over. So you may make a lower CPM in January, unless your niche is something like fitness, since getting fit is a popular new years resolution.
But other holiday weekends, such as around Memorial Day or Independence Day, can see a spike in advertising. Companies may run sales for those events, so they may spend more on ads than throughout the rest of the year.
Be sure to consider various holidays as well as any special events in your industry. Then, you can plan for increases or decreases in your advertising budget or expected YouTube earnings.
Will You Use a YouTube CPM Calculator?
A YouTube CPM calculator can be an excellent tool to predict how much you’ll earn as a creator on YouTube. On the other hand, advertisers can use it to figure out how many views their ads can get depending on their budget.
No matter your goals, you should consider using a specific calculator. Then, you won’t have to do the math yourself, and you can get a more accurate result when estimating income or expenses.
Do you need help setting up your next ad campaign on YouTube? Check out our YouTube Ads service to learn more. Edit Article