CPM

LeoX said:
CPM stands for Cost Per Mille. What is CPM exactly? The "M" in the CPM implies the Roman numeral for 1000 and as KGATV said, it's how much Google or a Network pays you per 1,000 views.
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I thought RPM was how much network pays per 1,000 views
 
Gambit said:
I thought RPM was how much network pays per 1,000 views
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RPM is calculated by dividing your estimated earnings by the number of ad impressions you received, then multiplying by 1000.

RPM stands for Ad revenue per thousand impressions.
 
LeoX said:
RPM is calculated by dividing your estimated earnings by the number of ad impressions you received, then multiplying by 1000.

RPM stands for Ad revenue per thousand impressions.
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Welp, I've been misinforming a crap load of people
 
LeoX said:
RPM is calculated by dividing your estimated earnings by the number of ad impressions you received, then multiplying by 1000.

RPM stands for Ad revenue per thousand impressions.
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Isn't RPM basically your CPM, AFTER the Network and Google's cut? It's like the money you are receiving directly into your pocket, right? :p
 
scifiriot said:
It's a common misconception but it's a little more complicated than that. A CPM isn't what you get paid per 1000 views of your video, it's what the advertisers pay per 1000 views of their ad.

If an ad runs on your video - and 999 other videos - Google charges that advertiser an agreed upon sum for showing the ad. Because you accounted for one of the one thousand ad views, you get 1/1000th of that money, minus google's take which is a commission on selling and serving the ad.

This happens hundreds, thousands, hundreds of thousands or (if you're lucky) millions of times on your videos and channel. One ad on your channel may pay a $4 CPM, one a $3.50 CPM, another an $18 CPM, another an $8.17 CPM, and so forth and so on and on and on and on and each time you get 1/1000th of that money.

YT then does the work of tracking how those ads are served on your channel, what all the CPMs were for each, what your cut of those ads is, and then adds it all together and pays you for it, while telling you what the *average* CPM you got paid for is.

Additionally, the CPMs the advertisers pay (even on the same ad) will vary depending on the time of day the ad is served, geographic location of the viewer, demographics of the viewer (age, income level, sex, etc), the industry the ad targets, the level of competition for the keywords the ad targets, the perceived premium quality (if any) of the video/channel the ad is running against, and a bunch of other factors.

When someone says they can get you a higher CPM, what they're actually saying is they can put your video inventory into a pool of advertisements that pay a higher CPM rate.

The only time a CPM is what *you* get paid per 1000 views is if your videos serve the exact same ad, at the exact same CPM, 1000 times, giving you 1000/1000ths of the price the advertiser pays.
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Very informative. I definitely learned a thing or two from this post.
 
LeoX said:
Oops my bad. Lol
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No you were pretty right. It's just CPM but after the cuts. For example: Let's say I got 25k monetizable views in one month and earned $50 from my gross revenue.

25,000/1000 (CPM Ad impressions) = 25.

Take the amount of money I received, and divide it by that number.

$50/25=$2 rpm.

:)
 
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