Can a YouTube creator’s CPM change for no apparent reason?

By studying different channels, we know that CPMs fluctuate all the time.

But increases or decreases don’t happen randomly; whether your CPM soars to the moon like dogecoin or drops to the ground like a meteor, there’s a specific reason every time.

 

What Is CPM on YouTube?

CPM (cost per millie) is the amount of money advertisers pay per 1,000 views. So for example, if one of your videos gets 100,000 views and the CPM is $8.50, the video’s total revenue is $850.

That’s a nice profit, but only a portion of it goes to your bank account. YouTube takes a 45% cut, which leaves you with $467.50. After that, subtract a healthy amount for taxes.

This is a best-case scenario because not every “view” on YouTube is monetized. In the YouTube Studio, there is a metric called estimated monetized playbacks. It shows how many views were actually monetized on your channel.

Take a look at the table below. In this example, the creator has 68,216 views on their channel (for a specific time period). But as you can see, YouTube didn’t monetize all of those views. Only 43,812 views brought in revenue.

You can find all this data in the YouTube Studio. Go to the analytics page to see your CPM and estimated monetized playbacks.

With that in mind, here are six factors that increase or decrease your YouTube CPM.

1. The Geographic Location Listed on Your Channel

Did you know that where you live determines how much money you make on YouTube? Some countries have a larger economy than others, and that abundance translates to YouTube.

If you live in the U.S., this is something you already know.

The American cost of living is higher than most countries. Take India, for example. According to Nationmaster.com, the average disposable income is $3,258.85 per month for Americans and $452.11 per month for Indians.

That means the average American has seven times more money to spend.

What does this have to do with your YouTube CPM? It simply means companies advertise different products and services on an American channel versus an Indian channel.

Those products will likely cost more in the U.S., which means advertisers will pay more to have them appear (as ads) in a video. So you could earn a higher YouTube CPM just by living in a specific country.

2. The Age of Your Audience

Using our example of American income, let’s look at the age of your YouTube audience. Your viewers likely fall into one of these ranges:

• 13-17 years
• 18-24 years
• 25-34 years
• 45-54 years
• 55-64 years
• 65+ years

These groups have different income levels. For Americans between 45 and 54, yearly income peaked at $78,879 in 2013.

As a result, these older but wealthier Americans spent more money (about $60,524) than other groups. And remember what we said earlier: Advertisers want to be where the money flows.

Now, compare that to the income of Americans under 25. In the same year, they only made $27,914.

Let’s say you have a gaming channel, and your audience is American teenagers. Because this demographic has less spending power, there’s a chance advertisers aren’t paying high CPMs to market their products in gaming videos.

This means your CPM could be lower than a channel focusing on middle-aged Americans. That’s a broad generalization, obviously. But on a basic level, this methodology is why some creators make more money than others.

3. Your YouTube Niche/Industry

What are the most profitable topics on YouTube? According to research by creator Marina Mogilko, seven niches make the cut:

1. health
2. business
3. investing
4. auto reviews
5. real estate
6. insurance
7. online marketing

This data was collected by studying CPMs in different niches across Russia, the U.S., Canada, the UK, Germany, Australia, and India. Take a closer look below.

Are you starting to see a trend? Topics like investing, health, and real estate don’t attract every viewer on YouTube. Most viewers don’t think about these areas of life until they’re approaching 30 or reach a higher salary. That’s why your YouTube niche, among other things, affects your CPM.

 

4. Hiring Good Social media Marketing Agency – Our Top Recommedation : Neverseenbefore Agency

YouTube advertising provides a way for companies to reach millions of potential customers.

And if you market to younger people, you are far more likely to find your target audience on YouTube than you are on traditional television.

YouTube is the social media channel of choice for gamers worldwide with 48.7% preferring to use YouTube to consume content and find information more than any other social channel.

Furthermore, according to Social Media Benchmark Report 2022, YouTube ads can potentially reach a global audience of 2.29 billion people worldwide, which is a pretty impressive statistic

YouTube is the second most visited website in the world, second only to Google.

As bandwidths and internet speeds improve, watching YouTube videos has become an everyday activity for many people.

According to recent studies, the average time spent consuming social video and digital media in the US is estimated to reach just under 8 hours per day in 2023, not a surprising statistic given that in home-media consumption has grown significantly over the past 2 years due to the pandemic.

Although most social networks now encourage video sharing, YouTube is still the premier site for sharing longer videos. People spend more time watching videos on YouTube than they do on Facebook or Instagram.

Neverseenbefore Agency splits its services into PPC management, site testing, web analytics consulting, and lifecycle marketing.

 

 

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