After you read our last article, we can agree that harnessing YouTube can be very profitable. One of the method to generate money through YouTube is utilizing YouTube channel monetization service – YouTube CPM.
There are some things you need to know about the mechanism of how creators make a living with their creations through YouTube CPM
What is CPM on YouTube
YouTube CPM is crucial, especially for channel monetization. CPM is an abbreviation for Cost per Mille.
You might be wondering what cost per mile means. YouTube CPM itself refers to how much advertisers pay for YouTube ads cost per 1000 impressions or views.
You are required to have 1000 subscribers and achieve 4000 hours of watch time on YouTube to apply this advertising monetization.
Creators can place ads on their content once their channels are monetizable. This is the time when they can start earning.
A video can only make money if viewers watch the entire ad. If an ad is long, a video can make money if viewers watch the ad for 30 seconds.
For information, 55% of ad money will be given to creators.
How to Calculate CPM on YouTube
The fact that YouTube has become a revenue source is undeniable. And when a channel has become a business, it is recommended to calculate everything.
Therefore, YouTube Calculator is invented, assisting creators to estimate the amount of money they have earned.
Just drag the YouTube video count based on daily video views, set the estimated CTR, and view the result.
For example, if your total ad revenue earned is $100 and you have 5000 YouTube views, the estimated video earnings is $20. Yes, you earn it.
You can see more details about YouTube CPM Calculator here. It is so easy to use that those creators will never lose count of the total sum of estimated earnings.
Why is CPM Important?
CPM is an indicator of the content and audience value, which it becomes the number that advertisers are most concerned with. This answers why content creators should pay more attention to CPM. It is really that important.
Every user can view YouTube channel revenue estimation from digital placement advertising on YouTube content. 68% of advertising revenue is generated from advertisers, while YouTube takes 32% of it. YouTube will pay content creators as much as $0.68 and keep $0.32 of the revenue.
What Niche has The Highest CPM on YouTube
Audiences need to be established. Thus, you need to know your niche, as well as you know what niche has the highest CPM on YouTube.
Every content has its own segment. Thus, a niche is really helpful to put content in its place.
The meaning of niche in YouTube is the genre or sub-genre that can be adopted in a creator’s video: Cooking, gardening, gaming, etc.
YouTube CPM Rates by Niche
According to Tasty Edits and Sudesh Roul, making money online is the YouTube niche with the highest CPM in 2023 on this list with an estimated CPM of $13.52.
SMBillion tells the opposite, as affiliate marketing is on the top, with an estimated CPM of $12-$22. They also show the list of countries with the highest YouTube CPM rates, with Australia the number one on this list ($36.21).
Meanwhile, many content creators target niches with lower competition. People with content need their content to be more exposed. In order to stand out, it is a good move to compete in low niches and get more attention from that.
Here are the top 10 countries with the highest YouTube CPM rates:
- Norway $43.15
- Germany $38.85
- Moldova $29.50
- Algeria $24.50
- South Korea $17.00
- Sweden $18.18
- Finland $14.90
- UK $13.75
- Canada $13.50
- US $13.00
Thus, based on 10 countries above, the country with highest YouTube CPM rates is Norway with $43.15
Valuable Metric
To generate revenue from your YouTube channel, of course, everyone needs an indicator. It seems like YouTube realizes it, and provides users with its maximum services.
If you asked “Why is CPM important?” earlier, now you know the answer.