You started a YouTube channel and monetized it. But it doesn’t bring the income you expected. What’s wrong? Are your videos too boring? Or maybe the titles aren’t catchy enough. Sure, these are solid reasons to discourage clicks, but other underlying issues can be the culprit.
YouTubers earn revenue from advertisers on the Google Display and Video Network. So if you’re not happy with your winnings, it could be because of a low CPM.
Not sure what that is or why it’s important? Stay tuned to find out the average CPM and how to calculate it.
What is CPM on YouTube?
CPM, or cost per mille, shows how much advertisers pay content creators per 1,000 views (and/or clicks). For example, if you get 200,000 views and a CPM of $10.50, the video’s total revenue is $2,100. Not too shabby.
But that’s your earnings before revenue share.
Unfortunately, YouTubers can’t pocket everything — otherwise, how would the world’s second most popular search engine get paid? YouTube takes a whopping 45% cut, leaving your actual income at $1,155. Oh, and Uncle Sam takes some of that, too.
Then there is the fact that not all views are “monetized”. As a result, you may not get paid for every pair of eyeballs that view your channel. In some cases, this means that tens of thousands of views are not taken into account in the calculation.
Why is this happening? Because some views are repeat views. And others don’t count if they haven’t watched for at least 30 seconds. The goal is to make sure you’re getting real viewers (not bots) who are actually consuming your content (not just a quick click).
To see your YouTube CPM, go to your YouTube Studio dashboard. Then click Analytics to view your estimated monetized plays.
Why is CPM important?
Well, every content creator on YouTube wants to make a decent income. So on that front, CPM is super important. It’s the cut you get from what advertisers pay to the YouTube network. The more they pay for an ad, the more you earn.
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Ads with a high cost-per-click appear on high-quality videos. So if you want to know if your video content is considered “valuable,” then look at your CPM.
If most of your ads are only paying pennies per 1,000 views, it’s time to refresh your channel. And if your ads are getting big dollar amounts, then count your blessings. Remember that CPM is not what you get, it is what the advertiser pays to YouTube. You only get a 55% revenue share.
What is the Average YouTube CPM?
This varies from day to day and year to year. This depends on the keywords the advertiser is targeting and the cost. So some pay as little as $0.50 per 1,000 video views while others pay $10 or more. CPM rates are influenced by many factors, including where you live.
According to a post from Hubspot, 0.38 CPM is the average for the US, while 4.38 CPM is the average in Spain. The country with the highest average at the time was Mauritius with 7.05 CPM.
Other factors that affect your CPM include:
The length of your video
The size of your channel
Therefore, it’s important to pick a good niche and work hard to grow your subscribers as quickly (and ethically) as possible.
What Causes YouTube CPM to Change?
Your YouTube CPM may change due to a variety of factors such as: e.g.:
The time of year (if it’s Black Friday, expect higher CPMs)
Viewer location (advertisers can target viewers by location)
Changing ad formats (video formats pay more than static display ads)
If you notice your CPM dropping, it may be due to an increase in views from a different geographic location. When this happens, the ads you see will change, which may have lower CPM rates.
So monitor these elements to determine what the culprit might be. This way you can change your YouTube SEO strategy and content themes to increase your CPM.
What Can Hurt Your CPM on YouTube?
Not being ad friendly is the quickest way to hurt your CPM on YouTube. What does that mean? Creating content that is offensive, disseminates fake news, discusses sensitive political issues, or uses offensive language and images.
So the goal: keep your YouTube channel family-friendly. Also, keep an eye on YouTube policies to make sure you’re not breaking any rules. For example, their new anti-bullying and hate speech policy requires content creators not to use certain words and phrases. Use them and risk having your channel demoed or even banned.