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 is a place to watch entertaining, informative, and insightful videos. However, for others, Youtube is their main source of income and an endless goldmine. Keep reading to learn more about YouTube CPM rates!
You’ve probably heard of Youtubers making millions from consistently posting new videos on Youtube. On the surface, it sounds too good to be true, but then some Youtubers live like full-fledged celebrities. One can’t help but wonder what Youtube CPM is and whether they can make a living by posting videos on Youtube.
These are all excellent questions, and we have all the answers you need. In today’s post, we’ll be highlighting a couple of crucial factors that affect Youtube revenue. Without wasting much time, let’s dive straight into it.
What Is YouTube CPM?
Before we get into it, it’s a good idea to first form a firm understanding of what Youtube CPM is. Well, CPM abbreviates cost per metric (thousand), which is a measure of how much money advertisers are willing to spend on Youtube ads. The higher the CPM, the more money Youtubers earn from showing advertisers’ ads.
Youtube CPM is thus the amount of money an advertiser will pay for every 1000 ad views. This includes when you display the ad even without showing your videos. We also have video-playback CPM, which is where the advertiser pays for every video-playback where their ad is displayed, not for every impression.
Some Youtubers have astronomically high CPM, while others have meager CPM. Why the disparity, and what can you do to increase your CPM?
Factors That Affect YouTube CPM
There are tons of factors that come into play to determine your Youtube CPM. Working on them will help your Youtube videos fetch a higher amount for every ad you display. That said, here are a couple of factors that affect your Youtube CPM.
Your Audience’s Age
The age demographic is a crucial factor when it comes to determining how much you’ll earn from your videos. By age demographics, we mean the age of the Youtube viewers who watch your videos. In terms of age, your viewers can fall into the following categories.
- 13-17 years
- 18-24 years
- 25-34 years
- 45-54 years
- 55-64 years
- 65 years and above
These categories of viewers have varying CPM levels. Look at it this way, let’s say you have a gaming channel with Fortnite gameplay videos. Your audience will mainly comprise teenagers between the ages of 13 and 17.
Teenagers are almost always broke and have to get money from their parents. These teenagers have a tiny purchasing power, meaning they won’t spend as much on advertisers’ products. As such, advertisers are less willing to spend a lot of money on videos that attract this age demographic.
However, viewers between the ages of 45 and 54 are financially stable. Most of these viewers have a steady source of income and are well off. That means when something catches their eyes, they’re more than capable of spending money on it.
As such, advertisers are willing to shell out the big bucks for YouTubers that attract this demographic. This explains the CPM disparity between Youtubers that attract audiences with different age demographics.
The Location You Listed On Your Channel
Your location also plays a vital role in determining how much you can earn from your Youtube channel. Don’t think of location in terms of your city or state, think in terms of countries. It’s evident that some countries have stronger economies than others, which correlates to their citizens’ purchasing power.
Let’s take, for example, the US and Pakistan. The former has a higher cost of living than the latter, and also more disposable income among its citizens. This means its citizens can spend more money on the products advertisers market on Youtube.
Pakistan doesn’t boast a very strong economy, and the cost of living is relatively low. Its citizens won’t spend too much on products advertised on Youtube videos. That’s why Youtubers based in the US will have a higher CPM than Pakistani Youtubers.
The Youtube Channel Niche
Youtube has all kinds of videos with some on sports, lifestyle, and fitness, among others. Did you know that different niches on Youtube have different CPMs? That’s right, not all niches pay the same on Youtube.
Some of the most common niches on Youtube include:-
- Real estate
- Online marketing
Of course, the list of Youtube niches is endless. That’s because you can have a Youtube channel about literally anything. However, you should have a Youtube channel that attracts viewers from a financially stable demographic.
Real estate, for instance, is a niche that can rake in a decent amount of money. That’s because viewers interested in real estate watch these videos to learn about real estate investments or where to buy a home. If they have enough money to buy real estate property, they’ll definitely have enough for the products Youtubers advertise in their videos.
The Type Of Ads You Run On Your Youtube Videos
YouTubers can decide what type of ads they want Youtube to display on their videos. The problem with most Youtubers is that when they monetize their channels, they choose every type of ad available. However, you might want to focus on particular types of ads to get the most money.
Here’s how much different types of ads pay on Youtube.
- Display ads (auction)-$1.36
- Skippable video ads (auction)-$15.81
- Skippable video ads (reserved)-$15.29
- Non-skippable video ads (auction)-$8.85
- Non-skippable video ads (reserved)-$14.64
- Bumper ads (auction)-$4.58
- Bumper ads (reserved)-$9.48
Note that the above figures are only a rough estimate, and the actual revenue might vary. However, video ads cost a lot more than display ads because it’s hard to ignore video ads. You can check out the 2022 Youtube CPM rates and decide for yourself.
Optimize Your Youtube CPM For Better Earnings
Now that you know everything that affects Youtube CPM, it’s up to you to optimize your channel for a higher CPM. Remember, consistency is imperative to the success of your Youtube channel. Upload consistently and soon you’ll be swimming in money.
Contact us today if you need help optimizing your Youtube channel for better CPM or if you’re looking to advertise on Youtube.