How much does your YouTube channel earn per THOUSAND views?

How much does your YouTube channel earn per THOUSAND views? Introducing: RPM!

Today I'm happy to introduce you a new revenue metric called rpm which is revenue per thousand views and here's some background about this metric. So all creators want to know how well they monetize on YouTube and there are two ways to do that. One is playback based CPM which is a price of how much advertisers pay per thousand monetized views. It's a great metric to know how much advertisers have paid but it has a couple of Cavett's because it's before revenue share and it only includes monetized views on your channel. There is also a second way which is dividing your total revenue by your total views which is intuitively correct but because of the way how YouTube data works and the way how a revenue data comes into the product the calculation itself might be a bit wrong in the end.

So today we're introducing a new metric where we do the math for you also rpm can be a bit lower than CPM because it's using revenue after a share and includes all the views and just a reminder. It's just a revenue right metric so it doesn't affect your final earnings.

let's start so definition for rpm one of the things we try to do is try to keep the definition really really simple and so that it's intuitive and creators understand is really well as well the definition is basically all your own revenue as a creator divided by all the views that you get times thousand so in other ways is essentially earnings per view and then we multiplied by a thousand to make it easier number to remember now let's go a little bit deeper into both of those pieces which is revenue and views right so revenue or owned revenue is all the new you born as a creator across all the potential business models possible on YouTube.

But he's through YouTube and those are ads premium subscription revenue memberships revenue super chat and super stickers. So all of those revenue, all those pieces of revenue that you want as a creator all views and these are private public all the views that you see in white here includes views that had ads did not have ads all of it. So all your revenue all your views times thousand okay so technically creators can calculate this themselves right yeah so this is existing data in youtube anlytics: RPM=Total RevenueX1000/Total Views .

But I think you spoke about this earlier is like one of the challenges to Catholic is directly is first obviously. you have the calculator every time yourself manually and the other new ones also is that sometimes views data is much more updated that have real-time views in YT and revenue can be a little bit later. So let's take an example let's say you want to assess an RPM of a recently published video and then you say okay let me look at the last seven days of data it could be the case that in the last seven days of data you only have let's say about five days of revenue and then seven days of views. So obviously that's not going to give you the right number. So that's why what we said is okay this is anyway how creators are calculating it. let's help them calculate it and let's calculate correctly. So that they don't have to do it so that's the summary of the of the metric itself.

So let's talk maybe a bit more about the differences between rpm and the metrics that already exists in YouTube analytics. For example playback based CPM.

what is playback by CPM?

It's the average price that advertisers pay per monetized playback.

what's monetize playback?

It is an average price that advertisers paid for every view that had ads playback pay CPM. It's useful to know what advertisers are paying but if you step back and said what am i earning on a per view basis there's a few gaps and there's three gaps one is playback by CPM only talks about only includes ads reveling right and the second one is its revenue that's before subtracting YouTube's rapture

so this is actually what advertisers are paying and doesn't give you what you will finally earn after revenue share.The third one is that it actually focuses just on the views that had ads and obviously if you have a channel you have lots of views some of those views would have had ads and some of those views would not have had ads and so playback a CPM only uses the views that had ads.

let's take an example. So quick summary of the definition again. It's the average price that advertisers are paying per view that had an ad.let's say that 10% of your of a particular video had ads and your playback pay CPM was $2.00. It could be that another video had 50% of views had ads and it could still be $2.00. But there is a big difference between those two because in one case 90% of your views did not have ads and in other case 50% of them did not have ads but you're not seeing a difference in playback by CPM because they backed by CPM is only looking at the user got ads. So that's why rpm looks at all the views and it accounts for the fact that some views some videos will have few views with and some videos might have lots of use with ads. So it gives you a fuller picture

I am monetizing well on this video or channel and so that's the difference why motorized playbacks and playback of a CPM might be restrictive. If you want to understand your overall channel monetization break, so we should expect rpm to be lower than playback by a CPM. I think typically for most users rpm could be lower than playback base CPM and that's because of two reasons CPM as we said is what advertisers pay. So it's before YouTube revenue share versus rpm is using what you are as a creator so it's typically lower than what the total advertising revenue is also an RPM is an average across all your views versus playback. CPM is averaging only across views that had ads so normally when you have a bigger number in the denominator elect that means you're taking a certain amount of revenue and dividing by a lot of views for all your views in rpm case it could be lower than playback a CPM as well. So those are two reasons why our champion be lower than your playback is easier.

Now let me have talked about the difference there between rpm and playback a CPM either maybe you can talk a little bit more about what kind of data that you can get without be in on YouTube analytics. RPM is available both at channel level and video level. So you can review how different videos have been monetizing. For example have videos of a particular topic say you have a cooking channel and you have videos with Italian recipes and you you have a group of that of those videos

you can also look at your RPM for for a group so on a group level and last but not least we also enabled the data for all historical periods meaning that if you have been monetizing for a few years you can actually check your your RPM transform for several years and I think there are also a couple of particular cases and let's maybe discuss those so for example memberships let's maybe dive into that topic how does it work without BM yeah definitely so memberships has a unique way of attribute Ling revenue to a video so there's three types of membership revenue you could get one is a member actually signs up for memberships the second one is the member could be renewing their membership and the third is the rent member could be upgrading their membership now the way the revenues are counted at the video level is that if a member signs up on the video let's say in a particular month what we do is every following month we also attribute the upgrades and the renewals to that same video so you might find in some cases that your video has a very high rpm because of memberships and that's because that video has been accruing membership revenue from members who signed up in the past as well okay so that's about membership Selena

now as you have explained a lot of our rtm creators might think okay that's good I can understand what my how well my channel is monetizing and the almost immediate next step would be okay what can I do to increase it so you have some tips about how creators could think about increasing their rpm sure there are a few ways how creators can improve their RPM and because it's a ratio you can improve your numerator and this means that you need to improve your total earnings so don't forget to enable monetization on all your videos and enable all ad formats on all eligible positions don't forget about meat rolls for example and if you're eligible please enable all alternative monetization features that are there for example memberships super Chad's and so on it will help you diversify your revenue streams a lot I think we're almost finished

so sir any other questions or feedback for our audience today yeah absolutely I think I would love to hear and the team would love to hear more feedback about this metric but also in general about how they understand and would like to understand revenue on YouTube as well so please leave your feedback in the comments below and we will review all the feedback and hopefully we'll be back soon on CI with an update based on that feedback thank you syrup and thanks to our audience and just a quick summary rpm is a new revenue metric that provides total earned revenue per thousand use it's a revenue rate metric so it doesn't change any any of your final earnings and it's likely to be a bit lower than playback based CPM but that's that's because it's calculated after after revenue share and ever just earnings across all your views so keep the feedback coming and keep it real