Revenue Per Mille – A New Monetization Metric in YouTube Analytics
August 7, 2020
Article Overview10min read
YouTube is rolling out a new monetization metric Revenue Per Mille (RPM) for creators in their channel analytics section for tracking how much revenue they are making from the platform.
With the rise in popularity of social media, especially YouTube, content creators around the world are using it to connect with viewers, build their follower base, and earn money. And let’s face it: it’s this last bit that makes YouTube so attractive because it offers a chance to make a tidy profit while doing something you’re passionate about.
There are a number of ways to monetize YouTube. Some of the more popular methods are affiliate links, using platforms like Patreon to Crowdfund, and becoming a YouTube partner. Now, YouTube has added a new standardized metric for content creators to see how much money they’re earning. The metric takes into account all the platform’s monetization methods that creators are using.
The new creator-focused metric in YouTube Analytics, known as Revenue Per Mille (RPM), is the most holistic way to analyze a creator’s performance in this platform. It compares a creator’s total revenue against the total views and allows for monitoring fluctuations in revenue over time. RPM displays how much a creator earned per 1,000 views. It does this by multiplying all the revenue a creator earns from all of YouTube’s monetization methods – including ads, YouTube Premium, Channel Memberships and Super Chat and Super Stickers – by 1,000 and dividing the same by the total views.
RPM Vs. CPM
Cost Per Mille (CPM) is an advertiser-focused metric that measures the average amount of money advertisers are willing to pay to show ads in a creator’s videos. It is considered to be a less efficient way of measuring revenue for a number of reasons such as
1. It includes only videos that are monetized into account and not all videos.
2. It shows only what an advertiser pays – not what a creator earns.
Unlike CPM, RPM is a creator-focused metric. It includes all videos, including those that were not monetized. According to YouTube, RPM is a better metric as it tracks the total revenue reported in YouTube Analytics, the total number of views from a creator’s videos – including those that aren’t monetizing – and the actual revenue earned (after revenue share).
NOTE: As RPM is calculated using revenue earned after YouTube takes its cut, creators should expect the RPM metric to be lower than CPM, but don’t have to be worried as a lower RPM is normal and it doesn’t mean you’re making less money.
How to Increase RPM?
To improve and earn more money, it’s recommended that creators regularly review and evaluate their RPM. Here are some steps to maximize RPM:
1. Enable monetization on all videos
2. Enable all ad formats
3. Enable ads at eligible positions (e.g. midrolls)
4. Enable AltMon features (e.g. memberships, superchat, etc) to diversify your revenue streams.
However, each feature has its own requirements and guidelines.
How RPM Can Help YouTube Creator?
By displaying fluctuations in revenue, RPM allows content creators to find new and improved ways to earn more. With RPM, you have a much better understanding of what works and what doesn’t for your channel. In the past, allowing ads in videos was the only way content creators could make money. Now, there’s a whole list of ways to earn money. There are:
1. Channel Memberships, where members subscribe to your channel in exchange for perks
2. Merchandise Shelf, where followers purchase your merchandise and help increase your sales
3. Super Chat and Super Stickers, where fans pay to have messages highlighted in your chat streams
4. YouTube Premium Revenue, where you receive part of a YouTube Premium subscriber’s subscription fee when people watch your content
5. And, of course, the good old Advertising Revenue.
Thanks to YouTube’s new RPM feature, you get a solid handle in finding out which avenue of monetization works the best for you.
YouTube has over 2 billion viewers – that’s nearly one-third of the entire internet! With more people using smartphones, it’s no stretch of the imagination to know that the number of YouTube users will rise. It’s the perfect time to monetize your channel – and RPM can help you do it better.
Available now to all monetizing creators, take advantage of RPM to measure your revenue performance over time and make more informed decisions going forward. Especially for active channels that are regularly publishing videos and hosting live streams, RPM is a brilliantly simple way to measure ROI.