Best Ways to Increase Your CPM on Youtube

Understanding YouTube's RPM and CPM is crucial for creators who want to make more money on the platform. This article breaks down these concepts and offers practical tips to increase your CPM and boost your earnings.

What is CPM on Youtube?

YouTube CPM (Cost Per Mille) is a metric that represents the cost advertisers are willing to pay for 1,000 impressions on YouTube videos. It varies based on factors like content type, audience demographics, and ad format. Creators earn revenue based on this rate, making it crucial for monetization strategies.

To calculate CPM on Youtube, use the following formula:

This metric indicates how much advertisers are willing to pay for 1,000 ad impressions on your videos, helping measure the effectiveness of ad campaigns.

Here are some key points about YouTube CPM:

✅ Varies A Lot: CPM rates can differ based on who watches, what the video is about, and where viewers are from.
✅ Ad Types Matter: Different types of ads (like skippable or non-skippable) have different CPM rates.
✅ Seasonal Changes: Rates can go up during high-demand times, like holidays.
✅ YouTube's Cut: YouTube keeps a portion of the ad money, usually around 45%.
✅ Special Content Pays More: Niche channels often get higher CPM because ads can be more targeted.
✅ Viewer Attention: Videos with highly engaged viewers can earn better CPM rates due to more effective ads.

What is RPM? Youtube Meaning

YouTube RPM (Revenue Per Mille) indicates how much money a creator earns per 1,000 views, factoring in all revenue sources like ads, channel memberships, and Super Chats. It provides a comprehensive measure of earnings, helping creators better understand and optimize their monetization efforts compared to CPM, which only accounts for ad revenue.

To calculate RPM on Youtube, use the following formula:

Total revenue includes all earnings from ads, memberships, Super Chats, and other sources. This metric provides a comprehensive view of a creator's earnings per 1,000 views.

Here are some key points about RPM on YouTube:

✅ Per 1,000 Views: It shows how much you earn for every 1,000 views on your channel.
✅ Helps with Planning: RPM gives a fuller picture of your earnings, helping you plan and optimize better.
✅ Revenue Tracking: It helps track both direct and indirect revenue from your videos.
✅ Seasonal Impact: Like CPM, RPM can also change during peak seasons when more people watch and interact.
✅ Influenced by Various Factors: Engagement, viewer demographics, and video length can affect RPM.

Proven Tips to Increase CPM on YouTube

Increasing your CPM on YouTube is not just about luck - it for sure requires strategic planning and an understanding of your audience. By applying these techniques, you can significantly boost your revenue and make your Youtube channel more attractive to higher-paying advertisers.

Target a Niche Audience

When you produce content that appeals to a specific, niche audience, you can attract advertisers who are willing to pay more to reach that demographic. For instance, tech or finance channels often see higher CPM rates because advertisers in these sectors are targeting a particular and often lucrative audience. Tailoring your content to a well-defined niche can make your channel more attractive to brands willing to spend more on targeted advertising.

Use Longer Videos

Longer videos offer more opportunities for ad placements, such as mid-roll ads, which can be inserted throughout the content. This typically leads to higher total ad revenue per video and can increase your CPM. While it's important to ensure that longer videos maintain quality to keep viewers engaged, they provide more ad inventory for YouTube to sell to advertisers.

24/7 Streaming

Continuous 24/7 live streaming, especially if it's content that maintains viewer interest over long periods, can significantly increase views and ad impressions. This constant stream of content allows for more frequent ads, thereby potentially enhancing your CPM. 24/7 streams can be particularly effective for channels that offer relaxing music, study sessions, or constant news updates.

Below are the two screenshots with examples. The first screenshot indicates that before February 17, the average viewer retention on the channel was 2 minutes and 30 seconds. Following the initiation of streaming 24/7, the average viewing duration increased to 3 minutes and 47 seconds. Note, that this stream was active for just a few days.

BTW, now you can launch a 24/7 non-stop stream on YouTube via LiveReacting for only $24.75/month! This is a limited-time offer, so don’t miss out on this incredible opportunity.

Optimize Video Keywords

Using relevant and specific keywords in your video titles, descriptions, and tags can improve your video’s search engine optimization (SEO). Better SEO helps your videos rank higher in search results, attracting more viewers and advertisers looking for those specific terms. High-ranking videos on popular search queries tend to attract more valuable ads, thereby increasing your CPM.

Engage Viewers

Increasing viewer engagement involves creating content that keeps viewers watching longer and encourages interaction through likes, comments, and shares. For example, you can engage viewers with a live poll, quiz, or some contest. Engaged viewers are more likely to sit through ads, click on them, or return for more videos, all of which can lead to higher CPM. Building a community around your channel where viewers feel connected can significantly improve viewer retention and advertiser interest.

Geographic Targeting

Focusing your content on regions with higher CPM rates, such as the U.S., Canada, and Western Europe, can improve your earnings. These regions often have more advertisers willing to pay higher rates for ad placement. You can target these demographics by creating content relevant to these audiences or using language and cultural references that appeal to them.

Frequent Uploads

Consistently uploading new videos can help maintain and grow your audience, leading to sustained or increasing CPM rates. Regular uploads keep your channel active and give viewers a reason to keep coming back. This consistent engagement can attract more advertisers looking to reach an active and engaged audience, thereby potentially increasing CPM.

Highest CPM Youtube Niches in 2024

The Cost Per Mille (CPM) rates on YouTube can vary widely depending on the niche and the target audience. As of 2024, some of the highest CPM YouTube niches include:

1. Finance and Investing
   • Average CPM: $20 - $55
   • Content related to personal finance, success, investing strategies, stock market analysis, cryptocurrency, etc., tends to attract high CPMs because of the lucrative advertiser interest in these areas.
2. Technology and Gadgets
   • Average CPM: $15 - $50
   • Reviews of new tech products, tutorials, and unboxings of gadgets often have high CPM rates as they draw a tech-savvy audience.
3. Health and Wellness
   • Average CPM: $10 - $40
   • Videos related to fitness, nutrition, mental health, and medical advice attract advertisers from the healthcare and wellness industries.
4. Marketing and Business
   • Average CPM: $15 - $45
   • Business growth strategies, marketing tips, and entrepreneurial advice videos attract professional and corporate audiences, leading to higher CPM rates.
5. Real Estate
   • Average CPM: $10 - $35
   • Content on buying, selling, and investing in real estate properties draws advertisers from the real estate sector, including property developers and home improvement services.
6. Legal and Lawyers
   • Average CPM: $15 - $35
   • Legal advice videos, information on regulations, and lawyer service promotions attract advertisers with high budgets.
7. Insurance
   • Average CPM: $20 - $50
   • Videos about different types of insurance (life, health, auto) attract high CPMs due to the competitive nature of the insurance market.
8. Educational Content
   • Average CPM: $10 - $30
   • Videos providing educational content, online courses, and tutorials tend to have higher CPMs as they attract an audience dedicated to self-improvement.
9. E-commerce and Dropshipping
   • Average CPM: $12 - $40
   • Content focused on online selling, dropshipping strategies, and e-commerce business attracts advertisers targeting entrepreneurs and online business owners.
10. Luxury Goods

• Average CPM: $20 - $45
• Videos showcasing luxury goods such as high-end fashion, watches, and cars attract advertisers from the luxury sector, leading to higher CPM rates.

These CPM rates are approximations and can fluctuate based on various factors including viewer demographics, geographic location, seasonality, and advertiser demand.

Average CPM Youtube per Industry in 2024

The table presents average CPM rates on YouTube for various industries in 2024, showing a range of values from $1.36 for Music to $36.36 for Digital Marketing and Finance.