Key Factors That Affect Your YouTube CPM Potential
YouTube CPM: YouTube is a leading search engine around the world. Rivaling other search engines like Google, YouTube boasts of billions of videos being streamed every other day, making it a must use for advertisers in different fields.
Who wouldn’t want to have their ads reach the vast number of users that YouTube can reach? This brings us to the YouTube CPM (Cost per Mille). This refers to the cost per thousand impressions, clicks or views.
For YouTube, CPM is the cost per thousand views. An advertiser would pay to have their ads viewed on a YouTube channel, making payments per thousand views.
It is a very good way to market your products due to the high consumerism of video content. Most people tend to prefer video over written content, so this would work in your favor.
Furthermore, the video gives you more room for vivid description and a better chance of attracting potential clients than written content.
Earning from YouTube Ads
For You Tubers that are interested in making money from ads, you may want to know of a few things first.
There are some things that are usually unclear when it comes to the amount you would receive from displaying ads on your channel.
YouTube CPM Factor #1: YouTube’s Cut
To begin with, you should be aware that YouTube does take a fraction of the payment made by the advertisers. 45% of your earnings go to YouTube, so when assessing how much you would earn, take this into consideration.
Most of the time you may have just translated the CPM to be what you will earn from YouTube ads, yet such deductions play an important role and need to be taken into account.
YouTube CPM Factor #2: Type of Viewing Counts
You will not earn from every single view of the ads. You know those ads where YouTube gives one the option of skipping them after a few seconds?
Well, any ad that is skipped is counted as having not been viewed so you will not earn from those.
Your predictions may also not always be right. For instance, if you get 3000 views per day, you may be counting all those as what will determine your pay.
It doesn’t always work that way. There could be several possible reasons as to why your views are not all monetized for instance:
• The existence of ad blockers. Some users use ad blockers to block ads from appearing at all on YouTube. They may view your videos but not the ads displayed there.
• Fewer ads are shown when a viewer watches multiple videos at once. This is YouTube’s way of giving their viewers a better experience, but it means not every view is a monetized one.
• Skipped ads do not count when calculating the number of times an ad has been viewed.
• Ads do not always appear every time your video is played due to lack of paying advertisers.
These do change how many views in your channel are monetized. They need to be considered when calculating the expected earnings from such kind of marketing.
YouTube CPM Factor #3: Revenue per Mille
Although you cannot use the cost per mille to determine your earnings for ads on YouTube, there is the Revenue per Mille (RPM) which is the word for the actual amount you earn from YouTube marketing per thousand views.
To see how much you are earning for ads or the RPM rates, head on to your analytics page on YouTube which is found in the Creator Studio option. Go to Ad Rates and here you can see the number of views you are making money on.
YouTube CPM Factor #4: Types of YouTube Advertisements
There are different ways to advertise your product on YouTube. The ad can appear at different times, within a video or on the search page. The cost differs for the different options, so you would need to go through them and choose which works best for you.
The different formats include:
1. In-search – This is where the ads appear on the search results page. When a searcher keys in the words for searching that are similar to what you offer, your ad will appear above the other results.
2. In-stream – This type refers to when the ads appear before the video can be played. These are the kinds where you may find the option of skipping an ad.
3. In-Display – Once one searches for a video on YouTube and plays it, the ads appear beside this video and are labeled as ads. One will see it beside the video they are watching.
4. In-Slate – The ad for this format usually appears after the video being played ends.
Generally, the in-display ads tend to cost more than the other types of ads. The ones that cost less are the in-search ads.
YouTube CPM Factor #5: Target Audience
An advertiser can improve their YouTube marketing by specifying a target audience. You can narrow your audience according to age, gender, geographic location or what they watch mostly on YouTube.
This allows for a better experience as only those who are most likely to have an interest in and benefit from what you offer will see the video.
Once you understand your target audience, you can then pick the type of ad you want to display. It would be good to note that focused target groups tend to lead to an increase in Cost per Mille.
Improving you CPM Rates
There are ways to improve your CPM rates. You need to optimize your YouTube channel to ensure optimum monetization rates for your video content.
YouTube CPM Tip #1: Meta Data
This is what usually gets the user to view your video. It consists of the title, tags, descriptions, and thumbnails that are used. These should be used correctly to ensure a large number of views.
YouTube CPM Tip #2: The Title
The title of your YouTube video matters a lot when it comes to improving CPM rates. First off, it should be a catchy one.
Be creative with your title so that it catches people’s eye. This may be the key to getting more views on your channel.
Secondly, and this is more important than your creativity in forming a title; you will need to make sure that the title is relevant to the video contents.
YouTube tends to rank videos according to how relevant they are, so the words you choose should be a good representation of the content.
YouTube CPM Tip #3: Thumbnails
These are the miniature images that usually accompany any YouTube video. Ensure yours is relevant and find a custom one if possible.
There are those generated by YouTube although a custom one would better represent your video.
Many people place their ads on YouTube as it is a great way to have your web presence made better and it is not at all expensive.
It has a greater chance of leading to high conversion rates which are good for your business. The Cost per Mille YouTube gives you the freedom to pay only for the ads that have actually been viewed.
For the marketers, YouTube is a great way to earn through displaying of ads on your channel. Have good quality content, work towards multiplying the number of views for your videos to earn more and optimize the channel for better earnings.