Forget YouTube CPM… THIS is How to Earn More Money!

– You and I, we're YouTube friends if not family, right and
family share personal things. SO if I was to ask you
what's your YouTube CPM you'd happily go into your
analytics, get the information and tell me that you're
YouTube CPM is say $4.29. But you know what my response would be? Frankly I just don't care anymore. – [male Whisper] VidIQ
– [Female] VidIQ – [Narrator] VidIQ.com (upbeat music) – That's because there is a new money metric in town called YouTube RPM. And to get to it you'll need
to click on your profile image in the top right hand corner (mouse click) of most YouTube screens and
go to the YouTube studio. From here click on the
(pen drawing) analytics section from the left hand (mouse click)
menu bar and then assuming of course that
you do have a monetized YouTube channel,
(pen drawing) click on the revenue tab at the top.

Slap bam in the center
you'll now see an RPM box. Click it to display your
RPM over the last 28 days. (mouse click) Or use the see more link to drill down (pen drawing)
into the numbers. When you do this one of the columns will display the RPM for individual videos. Which can really help you determine which content generates
the most books for you. (mouse click) Now usually when I talk
about YouTube analytics (upbeat tone) at this stage of a video
I'd ask you to share your, whatever it is,
is the comments below. But I think on this occasion it's probably best if you keep
those numbers to yourselves. Yeah, I've shown you some numbers here from my old YouTube channel, but I haven't made any videos on it for over two years, and
it's still earning me money. If you want to know the full story on that one, check out
the video over here. But right now, what we all need to do is pause for a second, take a deep breath (Intake and exhale) and ask a very simple
question, what the hell is RPM? (upbeat music) (mouse click)
– [Female Voice] Mille – All right, means one thousand, does it? Fancy YouTube for using a trending term from the early eighteenth century.

Really helpful, all right first of all we got an important distinction to make because there's already one of these – [Female Voice] Mille
– floating around It's CPM or cost per
– [Female Voice] Mille – This is gonna get really frustrating. CPM is the average amount of money that advertisers pay to show
ads in your videos. It only takes into account
the revenue from ads and the views from the
videos that were monetized.

This may come as a shock to some of you, but just because you monetize your content doesn't always mean that
ads are applied to every single video view on your channel. Explaining this would take a video in itself, but suffice to say, CPM is liked to your estimated monetized playbacks, which is never truly accurate. While RPM reflects the actual
view count on your channel. Furthermore, CPM shows you
what advertisers are paying, not what you are actually earning. And this is where we have to broach one of those uncomfortable truths
about YouTube ad revenue. Cost per
– [Female Voice] Mille – Thank you, doesn't take into account YouTube's cut of that ad revenue. Now again this may come as some of a shock to you because YouTube doesn't really tell you this information
in the YouTube studio. You have to go find it
out, the average YouTube channel will take 55% of
the ad revenue generator while YouTube takes the other 45%.

CPM doesn't take into account any of that. It is your raw value as a channel
to advertisers on YouTube. So yes, at a surface
level the RPM will look terrifyingly grim when
compared to your CPM. But it does reflect the actual truth of your ad revenue income on your channel. And YouTube do stress
themselves that RPM is a ratio that includes revenue that is calculated after YouTube's revenue share and the total number of views on your channel.

This is a new analytic, but you shouldn't see any difference in the actual amount of revenue you make on your channel. (camera beep) All right, I'm in the middle of editing this video and I just
realized that I may not have explained something explicitly and that is "Mille" because I was too busy trying to make a joke out of it. (high tone)
it obviously means thousand so when we talk about CPM or RPM (bell ding) it's cost per thousand, or
revenue per thousand views. Got that, good let's carry on
(clap) (upbeat music) (light switch clicks off) Does that look better? Like ad revenue itself, CPM is an analytic that's been around on
YouTube forever, so that presents a problem, it's
antiquated, it's out of date. YouTube has transformed
significantly in the last decade.

In 2020 there are multiple
ways for a monetized channel to make income from YouTube
products and services. And that includes YouTube
premium, channel memberships, super chats and super stickies. CPM doesn't take into account any of that. But RPM does, as we've already said, CPM is a measure of a value you are worth to YouTube advertisers. What RPM does is value your channel (light beep) with your community and
that is significantly more important and potentially more powerful and lucrative than any CPM you could get from your YouTube videos. As a very simple example,
the RPM on this channel is relatively stable over 28 days, but there are three distinct spikes that each last a single day
(bells ding) these represent super chats donated to a channel during live streams. Its clear here, the value of the creator. The community of the channel is able to raise RPM of a channel by 50 – 100%. Now of course this
doesn't happen overnight.

With ad revenue it literally
is flicking on a switch. And all of a sudden
you're receiving all of these micro payments
of a couple of dollars for ads that are appearing on your videos. But none of that can compare to a mobilized community unique to you. When you provide ultimate value that they can't get anywhere else. When you inspire people, you bring positivity to their lives. The moment that they
start to care about you as an individual
(light dings) and the creator is a moment when they will start investing in you for
all of the right reasons.

In a previous video we
looked at how Travis, who runs his own tech
channel, was able to run 45 minute live streams with 150 people watching them and generate
over $200 in super chats. – We got super chat, watch out now (excited fog horn)
$5.04 (upbeat music) – That is incredible,
you're not gonna get $200 from 200 views through ad revenue. Now of course, super
chats are very much an instant gratification
single shot in the arm type of bonus to your ad revenue. Now what if you were able to create a membership program out
of your YouTube channel? You are providing so much value that people are wiling to
pay for extra content. You raise your RPM on a consistent
basis, every single day. And just as a reminder,
these are not advertisers taking a bet on your advert
hitting the right person. These are people
(upbeat ding) who care about you and want to invest on a consistent and reliable basis on what you have to offer your community.

That over the long term is what RPM is going to be able to tell you over CPM. Now just a couple of things
to be clear about here. RPM does include more
of your YouTube revenue, but it doesn't include everything. That being YouTube merge, also any brand deals sponsorships, affiliate links and products and services that you sell outside of YouTube will not
be reflected in this RPM. With that being said, if
you are able to identify that your CPM
(bell ding) is staying fairly static while your RPM is beginning to rise, that
means people are investing more in you rather than advertisers.

And that is a key thing that we always try and encourage creators. Ad revenue is just the icing on top. If you want to make this a business, than you want to be in control of your income revenue sources and one of the worst ways to do this is to rely on CPM. RPM is the future of your YouTube channel..

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