With the pandemic of the new coronavirus, artists in general found in live broadcasts a way to publicize their work and, of course, make money in times when crowds are not allowed. Taking advantage of this hook, Google took the opportunity to review its monetization metrics and launch a new called Revenue per Thousand (RPM), in which content creators will be able to know exactly how they are making money on YouTube.
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The new metric joins Cost Per Thousand Impressions (CPM), which has been used in recent years to calculate the earnings of those who produce content on the platform based on every thousand ad views. However, this amount does not discount the YouTube commission and disregards the revenue generated by other means such as donations and subscriptions, for example. In other words, the user always ends up having a “surprise” in relation to his final earnings.
Creators: You can now see how much 💸 you make on YouTube relative to views you receive w / RPM in YouTube Analytics.
RPM = total revenue earned per 1,000 views
Use it to track revenue performance & make more informed monetization strategy decisions → https://t.co/fxtdmawpJP pic.twitter.com/oSF81ITKgv
– TeamYouTube (@TeamYouTube) July 9, 2020
The RPM, in turn, arrives precisely to give more clarity to those who use YouTube as a source of income and to have more control over their “salary”. The total profit from ads and other monetization areas already appears with the value of 45% discounted by the platform, in addition to detailing the values of each source (advertising, subscriptions, donations, live streaming resources), being important to analyze whether a strategy is paying off.
RPM may not be advantageous for everyone
As much as the RPM seems more interesting, it does not mean that you who already have a channel on YouTube or intend to open one will have higher income. The higher a channel’s CPM, the more an advertiser pays for that ad and, consequently, the more money a content creator earns per video.
The RPM, in turn, does not display this type of ad indicator and already shows the final value after the 45% withdrawal from YouTube, which can result in a lower profit than the CPM.
"Whether RPM increases or decreases, it’s a good indication of what’s working and what’sn’t working on your revenue strategy. Understanding what influences RPM can help you identify opportunities to improve your monetization strategy,” reveals an excerpt from the explanation contained on the Google support page.
According to YouTube, the new metric is now available to creators on YouTube Analytics, within YouTube Studio.