YouTube terms


The amount of money earned per 1,000 views.

What is a CPM in YouTube?

CPM, or Cost Per Mille, is a marketing term used to denote the price of 1,000 advertisement impressions on one webpage or in this case, a YouTube video. If a publisher charges $2.00 CPM, that means an advertiser must pay $2.00 for every 1,000 impressions of its ad.

In the context of YouTube, CPM is a metric that represents how much money advertisers are willing to pay for a thousand views of their advertisements on your videos. This metric is crucial for YouTubers as it directly impacts their earnings from the platform. The CPM rate can vary based on factors such as the location of viewers, the type of content, and the overall demand for advertising space.

How is CPM calculated on YouTube?

CPM, or Cost Per Mille, is a marketing term used to denote the price of 1,000 advertisement impressions on one webpage. On YouTube, CPM is calculated based on how many times an advertisement is viewed. YouTube's CPM rates are dynamic and can vary greatly, but the general calculation involves dividing the total cost of an advertising campaign by the total number of impressions, then multiplying the result by 1,000.

For example, if an advertiser pays $200 for a campaign that generates 50,000 views, the CPM would be calculated as ($200/50,000) x 1,000, resulting in a CPM of $4. This means the advertiser is paying $4 for every 1,000 views of their advertisement. It's important to note that YouTube counts a view for CPM calculation when an ad is watched for at least 30 seconds or to its completion, whichever is shorter.

How can I increase my CPM on YouTube?

Increasing your Cost Per Mille (CPM) on YouTube can be achieved through several strategies. Firstly, creating high-quality content that engages your audience can significantly boost your CPM. This is because YouTube's algorithm favors videos that keep viewers on the platform for longer periods. Therefore, the more engaging your content is, the more likely it is to be recommended to other users, leading to increased views and potentially higher CPM.

Secondly, targeting the right audience can also help increase your CPM. Advertisers are willing to pay more for ads targeted at specific demographics. Therefore, understanding your audience and creating content that appeals to them can attract more valuable ads. Additionally, enabling all ad formats on your videos and uploading consistently can also help increase your CPM. Lastly, consider using SEO strategies to make your videos more discoverable, as more views can lead to higher CPM.

What is a good CPM rate on YouTube?

A good CPM (Cost Per Mille) rate on YouTube can vary significantly based on factors such as the target audience, the quality of content, and the specific industry. However, the average CPM rates range between $0.25 to $4.00 in the United States. This means for every thousand views, you can earn between 25 cents to 4 dollars.

However, it's important to note that these are just averages and actual rates can be higher or lower. For instance, channels that target high-value audiences (like finance or business) may have higher CPM rates. Similarly, channels with high viewer engagement and retention can also command higher rates. Therefore, while these figures provide a general guideline, the actual CPM can vary based on a variety of factors.

If you create and edit videos...

You should try - a screen recorder that doesn't compromise on speed or creativity.

Tella simplifies video creation: record, customize, and share in one place; combine separate clips and quickly remove mistakes; apply beautiful backgrounds, layouts, and effects with just a few clicks; share the video link or export in 4K.

With Tella, create YouTube videos, tutorial videos, and online courses that look amazing in minutes, not hours!

Tella screen recorder

< Back to YouTube glossary

Try Tella today!

Screen recording for creators — simple and powerful.

7-day free trial — no credit card required