With RPM, creators on YouTube will get a standardized metric for tracking their revenue from all of YouTube’s monetization methods. YouTube is rolling out a new metric channel analytics section that shows creators how much revenue they’re earning relative to video views. It is a simple metric that compares total revenue against the total views. This gives creators a reliable way of monitoring fluctuations in revenue over time.
RPM (Revenue Per Mille) shows how much a creator earns per 1000 views. It’s calculated by multiplying all revenue reported in YouTube analytics by 1000 and then dividing it by the total views in the same period.
Users can review their RPM an identify ways to improve and earn more money.
What is CPM and how is it different from RPM?
CPM is Cost per mille. It is the average amount of money advertisers are willing to pay to show ads in a creator’s videos. CPM is less efficient means to measure revenue for a number of reasons. It takes only monetized videos into account. CPM shows what advertisers are paying – not what creators are earning.
According to YouTube, RPM is a better way of measuring for creators as it shows how much money they earn. The total revenue reported in YouTube Premium, Channel Memberships , SuperChat and Super Stickers. Total views for non-monetizing apps are also shown. It also shows the actual revenue earned after the revenue share. RPM is usually lower than CPM because it shows the revenue earned after YouTube takes its share.
Why is RPM important for YouTube Creators?
YouTube creators never had a means to measure how much they are earning across the entire platform. This did not seem to be a problem until YouTube started expanding the way in which creators are eligible to make money. In the early days, the only way to make money was through ads in videos. Since then YouTube has evolved and now viewers can also spend money to support their favourite creators.
Other income streams from YouTube are:
- Views from YouTube Premium
- Channel memberships
- Super Chats
- Super Stickers
In Channel Memberships, fans can directly pay creators to receive premium content. Super Chats and Super Stickers were introduced when YouTube expanded into live streaming. RPM is a brilliantly simple way to measure ROI for live streaming. RPM is now available to all monetizing creators and you can take advantage of it to measure your performance over time and take informed decisions for your YouTube strategies.
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