Today, let’s talk about some of the important elements that go into determining how much money you make from ads on your YouTube channel.
What is CPM and RPM in Adsense?
RPM is the actual amount of revenue that you earned. The actual amount of money that you were getting paid per 1, views which can be seen in adsense during the date range that you have selected the overview report.
Typically, it’s floating somewhere between like $1.8 and $2.2 is kind average, but there’s lot of factors that go into that, and let me tell you what some of them are.
- Your pay rate is determined by what advertisers are paying to display ads on YouTube. That is called the CPM. And then that CPM gets split up between you, between your copyright holders, between YouTube, and everything. What you actually get is then considered the RPM.For example, if you’re attracting insurance ads, insurance ads, generally speaking, are paying a lot more than, you know, like the bottom of the barrel like toothpaste type ads would.So if you have a YouTube video that gives different insurance advice, that video most likely attract higher paying ads than say a personal hygiene video that’s teaching people how to brush their teeth.
How is your Pay Rate Determined in Adsense?
- Your pay rate is also determined by the frequency that ads are displayed against your content. Now, not every viewer sees an ad every single time they come to one of your videos. There are a lot of variables that go into this.For example, how long has it been since the last time that person saw an ad. If it’s been less than seven minutes they won’t see another TrueView or non-skippable video in that frame. But if it’s been more than seven minutes, then they most likely will see one.
Because YouTube gets to know how different people interact with ads. And if there’s someone who has a low tolerance for ads, that will have different display rate frequency than someone who has like a high tolerance for ads.
- It also depends on what country your viewer is in. Because in the US, there’s a lot more spending going on for an ad dollars here than they are in maybe some other countries or overseas, where a viewer there is most likely going to get a less expensive ad, like from an, advertiser that’s paying less. So if you have a lot of US and Canada type of viewers, you’ll probably make more than if you have a lot of viewers from like the middle of Africa.
- Your pay rate can also be determined by if there’s copyrighted music in your content or not. Let’s say you use music or something that you don’t own the rights to, and that copyright holder decided that they we’re just going to take a cut of the advertising revenue from your video, either completely all of it, or just a portion of it. That will make a difference. Even if you get millions and millions of views on your video, but all the revenue is being split between all these multiple parties, and you’re just getting a sliver or none of it at all.
- Kind of going along with that, it also depends on who is selling the ad. So there’s a couple different ways this can happen. If you’re with an MCN, then your YouTube network could be selling like their ad sales teams could be going out and getting the ads, and bringing them, and displaying those against your channel, and that could influence how much money you’re making.
Thank you guys for hanging out. If this is your first here, I would love to have your thoughts.