YouTube rolls out its new metrics called RPM to allow several revenue streams for its creators.
Creators have various ways to monetize their YouTube platform. Some examples of these revenue streams include advertising, donations, live streaming, subscriptions, or YouTube Premium revenue. With several options available, YouTube finally created a new monetization metric. Created so creators can understand how they earn on the platform, the new metric is called RPM or revenue per mille. While RPM is similar to YouTube’s CPM or cost per mille. RPM and CPM are different in terms of the creator since RPM is specifically for creators aiming to grow their channels, those who want to know the exact income they get from YouTube, and creators who want to see what videos work and what don’t on their channel.
What’s RPM (Revenue per mille)?
The new metric system shows how much creators are earnings per 1,000 views, that’s comparing their total revenue against their views. The RPM is more detailed as it includes revenue reports from YouTube Analytics, the 55% cut from the ad revenue, YouTube Premium, Channel Memberships, Super Stickers, and Super Chat. The total revenue is then multiplied to 1,000 and divided by total video in the same time period.
The RPM metric counts the monetized, non-monetized views, and the alternative monetization methods to give creators the big picture of how much their YouTube presence is generating and how much traffic they bring in the platform. The RPMs are shown in the Revenue tab of a creators’ Channel Analytics.
CPM vs RPM
While CPM has been the metric at work for a much longer time, this metric has its limitations. Creators thought that cost per mille is the money that creators make per 1,000 views. But in actuality, CPM is the amount that advertisers pay the creators for every 1,000 ads. Former creator turned into YouTube’s head creator liaison Matt Koval said that CPM hasn’t been the best metric as it doesn’t help creators understand how they’re earning their paycheck.
What does this mean for you?
Based on YouTube’s post, the RPM takes all your revenue streams into account. It’s a more holistic measurement and when creators check and evaluate it regularly, they’ll be able to identify how they can improve their channels and their content. They can also optimize their monetization strategies better.
RPM is now available for all monetizing creators. Creators can also visit YouTube’s Help Center to further understand how the new metric works.