One of the main factors determining the amount of money a YouTuber makes is the CPM, which is the abbreviation for the term cost per mile. CPM is basically how much money a person makes per thousand views. It is the cost to advertisers when advertisements are served a thousand times. Therefore, from an advertiser’s perspective, CPM is the money that they are willing to pay to a YouTuber for serving 1000 impressions of their ad. While from YouTuber’s perspective, CPM rates are the average revenue of what their YouTube channel has generated for a specific period. YouTubers can monetize their videos by placing ads before or in between their videos. YouTube negotiates CPM rates with advertisers.
How to calculate the CPM rate of your YouTube channel?
It is essential to know how to calculate your CPM rate before you plan to increase it for your YouTube channel. Marketers calculate the CPM by this formula.
CPM (the cost of every 1000 impressions) = Marketing cost/ Impressions generated (in thousands).
Ways to increase CPM rates on your YouTube channel
In order to improve the CPM rates of your YouTube channel, it is important to optimize every factor of the channel that is affecting the monetization. These are a few ways that will help increase your channel’s CPM rates:
Meta Data is the main component that gets a viewer to click and view your video. It consists of the title, descriptions, thumbnails, and tags that are used for the video. If utilized properly, they will work to get you the maximum view on your YouTube channel.
Having a catchy video title is a good way to grab the attention of the viewers. However, it is up to the video content to ensure whether a user actually watches the video till the end. YouTube no longer takes just clicks or views into consideration when deciding the search rankings. Watch time is the most important metric to calculate your CPM value. Having a catchy video title and good content is an easy way to increase your CPM rates.
Thumbnails are small visual windows to every video on YouTube. If you want your videos to get more views, integrating thumbnails is a good way to do so. You must adequately optimize the thumbnails to gain traction in multiple ways.
Increase your watch time
With more than 1 million subscribers, YouTubers will have a different set of advertisers that bid for their ads. Various channels with different number of subscribers have a separate target audience. Increasing your watch time will mean that you can insert more advertisements. This is the most obvious and simplest of ways to improve your CPM rate. Videos that are 10 minutes or longer can automatically accommodate more advertisements.
Creating a compilation of videos is also a good idea to increase the CPM rates of your channel. This includes putting a new film at the front of the video file so that there is something new for your loyal fans and your first-time views. The video will become more appealing and unique in this way. You can also add several shorter videos in the middle or at the end. YouTube channels often use this strategy to increase their revenue and increase their average view duration. This increases their overall revenue and along with the ad breaks within the video, it gets easier to increase the CPM.
The best strategy to increasing your revenue per view on YouTube is your audience. It is found that audiences in Western developed countries generate a higher CPM on YouTube. If you want to increase your money, you need to get more views. The time and day you upload your videos play a crucial role in determining your views directly proportional to your YouTube channel’s CPM rate.
Another factor that also affects your CPM is the language. English is a more widely popular language; therefore, videos in English are open to a wider audience, which will play a major role in increasing the viewership of the video and your channel. Serving a video in French, Spanish or Hindi to a wider audience is a little difficult. Going through your video library and ensuring to update old videos in English will increase your viewership which will in turn increase your CPM rate.
Pick a niche with high CPM
Choosing a niche with high CPMs is another interesting way to garner more viewers to increase your revenue. Look for keywords and find out which keywords have a low supply and high demand this will increase your CPM per view by making the content geared towards such audiences.
Being a YouTuber has become a career, and CPMs are one of the ways to earning revenue. Having a better idea of how YouTube CPM works make it easier to make the most of it. With good content quality that is advertiser-friendly, it gets easier to increase the CPM rates of your YouTube channel.