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Thursday, August 27, 2020

What is CPM in YouTube 2020

 

After watching some videos and seeing them wrongly explaining what CPM means on YouTube I thought let me Google it and see what other people are saying about it. I've clicked few links and then found out even they are not explaining properly either, so I thought let me just write it for people to understand it more clearly. 

Although after some digging I've found that Google itself wrote about it, but many people can't easily find it out.  Over here I'll share what Google said and explain it with an example. 

Note: {If you find this helpful then please share it with your friends and who ever needs it, recently Google stopped indexing my posts. So if you share it Google will consider to relist and hopefully many people will benefit from this. Highly appreciated}

So what CPM really means?
Well before we bring CPM, let's bring RPM and compare between them so that it will be easier to understand.

" CPM is the cost per 1000 ad impressions before YouTube's revenue share. RPM is your total revenue (after YouTube's revenue share) per 1000 views."  Remember Youtube takes 45% what you actually earn and you get 55%. Don't worry I'll explain it with an example, before we do I that let's see what else we can find out between them.

RPM

CPM

  • Creator-focused metric
  • Includes total revenue reported in Youtube Analytics including ads, YouTube Premium, Channel Memberships and Super Chat and Super Stickers
  • Includes total number of views from your videos, including the ones that were not monetised
  • The actual revenue earned after revenue share. 
  • Advertiser-focused metric
  • Includes only revenue from ads and YouTube Premium
  • Includes only views from the videos that were monetised (i.e ads were shown)
  • Earnings before revenue share

So now we found out that CPM is mostly for Advertisers and RPM for content creators, this is why you can't really calculate your CPM properly on YouTube. 

By the way there is another CPM on YouTube which can be calculated quite accurately and that's Playback-based CPM.  In fact if you know the amount of Playback-based CPM (the amount you get if 1000 ads shown) and Monetized Playbacks, then you can accurately find out how much you've actually earned from that video.

How do you calculate the actual earning amount?
OK, let's take the top video in the picture as an example. It's got 1500 Monetized Playbacks, at rate of $4.12. So if you divide $4.12 in 1000 you get 0.00412 multiply by 1500 = $6.18. So the actual earning amount of that video was $6.18.  Now let's divide it by 100 = 0.0618 multiply by 55 (content creator gets 55%) = $3.39 which is pretty close as you can see in the estimated revenue says $3.41.

Calculating RPM:
To calculate RPM is the easiest thing. You just take the amount of earning after sharing with YouTube and divide it by total views and then multiply by 1000 and that's your RPM for that video or your total earnings...

For example: Let's take the first video as an example. So $3.41 was the earning after sharing with YouTube so divide that with total views 2855 = $0.0011943958 multiply by 1000 = $1.19... so as you can see this is quite close to $1.25 RPM. Remember YouTube doesn't show accurate calculations so you always see estimated amounts that's why it's not possible for us to calculate exactly how YouTube does it.





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