YouTube creators have been given a new metric to better understand how much they’re making money on the video platform. The revenue per thousand (RPM), a term quite common in the media market, adds to the existing cost – per – thousand impressions (CPM) and can help you understand the effectiveness of the monetization channel.
The two names are similar but have different meanings. Cost-per-thousand impressions (CPM) has been YouTube’s standard metric in recent years: it signals how much a channel is yielding for every thousand ad views. But there are two details: the amount does not discount the commission that YouTube receives and only considers the advertisements, not the revenue through subscriptions or donations, for example.
Revenue per thousand (RPM), in the words of YouTube, “is a metric that represents how much money you’ve earned per 1,000 video views” and is based on a variety of revenue sources, including “ads, Channel Support, YouTube revenue Premium, Super Chat, and Super Stickers ”.
The RPM is focused on the creator instead of the advertiser and has other peculiarities: it considers the total video views of the channel, including the non-monetized content, and is obtained only after sharing revenue from YouTube, which charges 45% commission on advertising billing. Therefore, the tendency is that the RPM is lower than the CPM.
CPM will continue to be shown to creators, as it is useful for understanding how much advertisers are paying to appear in videos. This value may be lower or higher depending on the time of year, the audience viewing the content, the themes covered by the channel and the advertising formats that the video displays.