Can I advertise with money I earn from yt?

[OnixGameplay]

You set what you want your CPC to be. Google tells you if you're likely to get many views at that CPC based on things like competition for keywords, relevancy to the audience, etc.

I am guessing if I set cpc to be high I will get better quality audience? And lower = low quality audience ?

 

[Tarmack]

I am guessing if I set cpc to be high I will get better quality audience? And lower = low quality audience ?

No. Adwords works on a bidding system against other advertisers for certain keywords, interests, etc. So it's a lot of work to nail down the audience that you want. It is entirely possible to get a $0.01 cpc targeted appropriately. Higher bids just mean you're more likely to beat out other advertisers for the same views, but Google has plenty of unsold ad inventory.