YouTubers are sometimes called the most well a paid people, when you see YouTubers like PewDiePIe raking in millions as reported by mainstream media from making videos in his bedroom somewhere. What the mainstream media dont get is that its a passion but its also a full-time job in order to generate ideas, record and edit the video.
Its a dream of many YouTubers to one day become a full time YouTuber and to achieve that they need to be making enough money from YouTube to sustain themselves.
What is CPM?
CPM stands for Cost per mille which means cost per 1000 views on a video and . YouTubers can see their CPM in their adsense earnings reports. When an advertiser starts advertising campaign they can pay per 1000 views of the ad or cost per click on the advert. Therefore if the advertisers CPM was set to a max of $1 per 1000 views, and 900 of your viewers saw the advert they would pay $0.9 theoretically.
eCPM is the effective cost per mille basically the same as CPM but is the cost for every 1000th ad view or impression regardless of what buying method of advertisements is being used for example Fixed, Cost per click, cost per action or CPM.
For example you run a CPC campaign with a cost of $1 per click, you get 200 clicks on the advert but 2000 impressions on the advert. the eCPM is $100 dollars because you made $200 from 2000 impressions. If it was a CPM advertisement and the price you paid was $5 per 1000 views the eCPM would be $10.
How to Improve CPM
There are a few ways to improve your CPM on YouTub from targeting high CPC keywords, increasing engagement and watch time and making more videos which I will explain a bit more below.
1. Target strong CPC keywords.
This is a great way to increase your eCPM rates. Since you are paid with a mixture of CPM and CPC adverts on YouTube This is a sure way to increase your income. So each keyword has a value which is assigned by advertisers that ‘bid’ on that keyword with the price they want to pay per click or per impression. If you make a video on Favourite Dog Collars for example, and the cpc of a dogs advertisement is 0.5 cent, you will earn 0.5 cent per click or have a cpm of $1.20 per thousand views then you will earn $1.20.
You can find the CPM of keywords that are related to your video on the google keyword tool. You will need a google account and signed up for Adwords, Googles Advertising platform which is free to sign up to.
If you’re solely focused on making money you may want to research keywords before you make a video. Eg. Looking up video ideas on Insurance, finding the highest keyword such as “Bluewater insurance which has a CPC value of 4.50” You might make a video on Bluewater Insurance – My Experience/Review. Now this may not get a ton of views but the CPC/CPM will be quite high due to advertisers paying high amounts for insurance keywords.
I would not recommend switching from your niche area to accommodate CPC. You cant go from being an established beauty blogger with a ton of subscribers to becoming an insurance reviewer as you will lose your audience and will get negative feedback. So try and stay within your niche area as much as possible, although you can deviate if it relates someway to the niche or just a “Storytime/experience” video which have gotten very common.
2. Increase your watch time and user engagement rates.
Watch Time. I’ve mentioned this in a previous post, watch time and engagement rates are vital for CPM. The better the engagement, the more likely google is to serve higher paying ads to your video as they see that your video has a good active audience who are paying attention. You can find how to increase your watch time in this post here:
3. Create more content
Now this is a no brainer, the more content you have the more views you will bring in cumulatively. This will increase your CPM without a doubt. Create a content schedule of daily videos or a video every 2-3 days. This will allow your channel and your revenue to grow effectively. Don’t post a flood of videos as it looks spammy and may not get the attention it needs from your subscribers.
My CPM Is going down, whats happening?
CPM is determined purely by advertisers and which ads are being served to your video. Ad budgets are usually a lot lower at the start of the year, don’t worry about this. Ad budgets pick up around the summer time and towards Christmas you will see the highest CPM/CPC rates due to holiday advertising.