What is YouTube CPM? And Why Is It So Important?

What is YouTube CPM
What is YouTube CPM? 4

When dealing with advertisements on YouTube, you might come across two terms i.e., CPM and CPC. So, what is YouTube CPM, well CPM stands for Cost Per Mile. Essentially, what CPM means is the cost per 1,000 impressions. It’s the cost an advertiser will pay for every 1000 impressions that their ads will get on your video. CPM will vary depending on the advertiser. Thus, the ad price will also vary and will depend on a variety of factors such as the genre of the ad, the consistency, and the bidding price. CPM will also greatly depend on the nature of the YouTube video, as some topics have higher CPM than others.

If you want to make a career out of YouTube, you must use CPM to your advantage. It is a great tool for judging which of your videos are more valuable in the eyes of advertisers. Although there are a great many ways to make money on YouTube, making money through advertisements on YouTube videos is a key way to earning money through your videos. Thus, along with knowing what is YouTube CPM, you must know which videos can be monetized so that you can plan your content and shoot videos relating to those topics. This will in term attract more advertising agents to your channel.

Factor That Affects YouTube CPM

Your Geographical Location

The CPM varies from place to place and therefore the amount of money you get from YouTube will greatly depend on where you are living. Some countries, such as the Maldives, have a very high CPM of $15.47, while others, such as Poland have a CPM of $9.23. Thus, the amount of money you get paid will greatly depend on your location. In addition to this, you have to keep in mind that you will only receive 55% of what you earn from CPM. For example, if your CPA is $1.80, you will only receive 55% of that, i.e., $0.99. YouTube will take a cut from your CPM earnings as well (a 45% cut to be exact). Thus, you must know what is YouTube CPM so that you can attract better-paying advertisers to your videos.

Targeting a Niche Market

Targeting a Niche Market
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As we mentioned before some topics on YouTube get higher CPMs. Thus, if you want your CPM to be higher, try making videos that target a niche market. For example, it’s been seen that drugstore makeup videos seem to do better CPM-wise than high-end makeup videos. Now, if you want to attract more advertisers, it’s best to make content that attracts higher CPMs. Although this is all trial and error, you must keep a close watch on your videos and see which is working better at attracting more advertisers and thus allowing you to monetize that video better.

Number of Views on Your Videos

Number of Views on Your Videos
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The videos in which advertisers choose to plant ads will have more than 1000 views on them. So when you go through your previous videos carefully analyze the content and see why it did better than the rest. Implementing those changes will allow you to make content that will attract advertisers to your Channel more. Thus, you must know what your YouTube CPM, to devise better social media strategies and make your content better as well.

Is CPM the Only Other Advertising Route?

Not at all! As we mentioned before along with YouTube CPM, there is another more traditional way of earning through these advertisements and it is called CPC. This acronym stands for Cost per Click. These ads are mostly placed around the videos but not within the video itself, where CPM ads start to play before the start of the video and sometimes in between the video as well. CPC advertisements are designed to get you paid instantly, while CPM provides a YouTuber with more exposure. Just as a name suggests, the number of clicks will depend on how much you get paid.

Conclusion

Now that you know just what is YouTube CPM, you can use it as a standard to identify which topics are getting more attention from your audience and are more eye-catching for your advertisers. If you’re an aspiring YouTuber who wants more advertisers on your videos, you can easily increase your CPM by creating a better YouTube strategy and cater it to reach more people as well. Thus, now use this knowledge and make content that is likely to get monetized more!

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