How To Calculate CPM And RPM

[Bozhidar Kabzamalov]

Hello,I was wondering what's the difference between CPM And RPM And how to calculate them.My network is Viso and my RPM For June was around 0.89 and last month(july) my RPM has riven to 1.25.My idea is that CPM is what you get before youtube and network cut.Am I right?

 

[Shobzy]

Hello,I was wondering what's the difference between CPM And RPM And how to calculate them.My network is Viso and my RPM For June was around 0.89 and last month(july) my RPM has riven to 1.25.My idea is that CPM is what you get before youtube and network cut.Am I right?

Yes and RPM is after the cut

 

[ConnersCraft]

No, you are not correct. They are two separate but similar numbers. CPM stands for "Cost Per Mille". This literally means cost per 1000. This is how much the average advertiser spends for 1000 ad impressions on your videos. When a network claims they have a high CPM, it means that they put you in a pool of high paying ads. CPM is how much the average advertiser on your videos is paying for 1000 advertisements. RPM is "revenue per mille". This is the revenue you make for 1000 monetized views. This is how much money YouTube is averaging to pay your network from 1000 monetized views on your channel before the network cut. (some networks will display after the cut, but most show the original number from YT and expect you to do the math).[DOUBLEPOST=1377554278,1377554177][/DOUBLEPOST]

Yes and RPM is after the cut

This is incorrect, and it is a common misconception. CPM is not in any way what you are paid. It is what the advertisers are paying.

 

[Tarmack]

It is simple.

CPM is the cost per mille (one thousand monetized views) and is the value before YouTube takes it's cut. RPM is revenue per mille, and is after either just YouTube has taken their money, or both them and your network depending on the perspective you wish to look at it from.

Calculation goes like this.

CPM Multiplied by 55% (amount remaining after YouTube takes 45% away)
Value multiplied by your network revenue share (VISO usually does 60/40)
Final number is RPM.
eg. $3 CPM X 55%
Post YouTube cut $1.65.
$1.65 X 60% = $0.99
$0.99 is the RPM in this case.

The reverse is also true.

RPM of $0.89 divided by 60% gives you a post YouTube cut of $1.48. Divided again by 55% gives a CPM of $2.70.

Insert your revenue share above if it's different.

 

[JuiceHead]

Hello,I was wondering what's the difference between CPM And RPM And how to calculate them.My network is Viso and my RPM For June was around 0.89 and last month(july) my RPM has riven to 1.25.My idea is that CPM is what you get before youtube and network cut.Am I right?

This is only semi related, but I am also partnered with Viso (TGN) and my RPM for June was 4.39. Why do we have such a huge gap? I've been with them for over a year now, but almost a 4 dollar difference!? I've actually never had an RPM below $2 with them. Does anyone have any insight to this? I've heard it's related to audience retention.

 

[ConnersCraft]

This is only semi related, but I am also partnered with Viso (TGN) and my RPM for June was 4.39. Why do we have such a huge gap? I've been with them for over a year now, but almost a 4 dollar difference!? I've actually never had an RPM below $2 with them. Does anyone have any insight to this? I've heard it's related to audience retention.

Your RPM will have much more to do with personal performance than networks. They are a factor, but not as large as most people believe.

 

[JuiceHead]

Your RPM will have much more to do with personal performance than networks. They are a factor, but not as large as most people believe.

So they other than revenue share does switching from network to network really even make that much of a difference?

 

[ConnersCraft]

So they other than revenue share does switching from network to network really even make that much of a difference?

It does some for sure, but it will not double your average CPM or something crazy. It does help to be in a network with a good ad sales team, but it depends what kind of ads they sell. If all their ads are for perfume companies, but you are a gamer your RPM could be lower than adsense. Personally under Maker, I get a $9 average cpm before splits, but I know people only getting $2. I also know people much higher than mine. There are way more factors than just the network.