On This Page,You can easily know about How to Increase Your YouTube CPM Rate.
Google Adsense is a program is run by Google. The program allows the publishers around the Google network of content sites to offer automatic text, video, images, advertisements to name a few. All of this is directly targetted towards the site content and the audience.
What is CPM?
CPM is the cost to advertisers when ads are served a thousand times. So, from an advertiser’s perspective, CPM is the rate they are willing to pay to serve 1000 impressions of their advertisements on YouTube. When an advertiser bids $2 on their AdWords account, this means the advertiser is willing to pay $2 for every thousand impressions on the monetized YouTube channels.
When an advertiser checks his Ad Sense performance report, CPM is known as a Revenue Per Mile (RPM). According to Google, RPM reports are advertiser’s impression-based revenue. Since ads are not displayed at even bundles of thousand impressions, all impressions served on the advertiser’s site, regardless of bid type, are combined and averaged in their report to show the advertisers effective revenue for 1000 impressions of the YouTube’s network.
The CPM metric is not designed for creators; it’s designed for advertisers. It’s how much advertisers pay, not how much creators make
From Youtubers perspective, CPM rates are the average revenue of what a YouTube channel has generated for a specific period. As every country lodges a different bidding rate, Google will take an average out of a YouTube channel as their share of revenue. In other words, CPM pays the affiliate for putting the banner or any ad on their high traffic page. So, for every thousand impressions, a YouTuber’s channel directs, he/she gets paid.
How To Calculate CPM for YouTube
Marketers calculate CPM by using the following formula.
The Cost of every thousand impressions (CPM$) = marketing cost ($)/ Impressions Generated (#in Thousands).
Example – The total cost for a working campaign is $20,000 and the total estimated audience is 5,900,000.
Then the marketers CPM will be ($20,000/5,900,000)*1000 = $3.38/thousand views.
Why my CPM is decreasing?
Don’t panic when your CPM rates decrease. According to YouTube’s Content Head – Robert Kyncl; the key part of a growing platform is opening up the inventory, which enables more partners to succeed by monetizing their content. This can lead CPM’s to fluctuate is the short term, but it’s good for the partner ecosystem long term. We are seeing this happen as overall partner viewership, revenue and subscriptions are on the rise. Many Youtubers have observed that there is a dreaded drop of CPM rates at the beginning of the year, as many advertisers shift their focus on Valentine’s Day.
So, when your money doesn’t match up, then you have to check how many Youtubers are actually applying to your channel.
How to Increase Your YouTube CPM Rates and Channel Earning Potential
If you are serious about marketing your brand, you need to consider YouTube Marketing. YouTube is arguably the Internet’s most popular video-sharing website. Video is also one of the preferred mediums by which internet users like to consume content. As an advertiser we should always be working on how to decrease our YouTube CPM rates!
If you have decided to start a YouTube channel or already have one, you are on the right track for growing your brand. But as you will soon learn, growing a YouTube channel is not an easy feat.
You need to be aware of the YouTube CPM rates. CPM (‘Cost Per Mile’) is the fee that an advertiser will pay for their ad to be shown on a YouTube video.
It is in your brand’s interest to improve your channel’s YouTube CPM rates. This will attract more advertisers to your videos and your channel.
This detailed guide will show you exactly how to increase your YouTube CPM rates.
How to improve CPM rates on your YouTube channel
When an advertiser pays their advertising fee, the payment will go directly to YouTube. YouTube will then distribute a commission to the account holder of the YouTube channel – your brand.
The more popular your videos are, the more the advertiser’s fee will increase. This usually increases after every 1,000 views. The higher the fees are, the higher your commission will be.
In other words, growing your YouTube CPM rates occurs when you focus on bringing traffic to your channel and your videos.
Here’s how you increase the YouTube CPM rates for your YouTube channel:
1. Content Is STILL King
You may be tired of the old phrase ‘Content is King’ but it still rings true. Your channel will bring in audiences and advertisers alike, based on the quality of your content. The better your content is, the higher the chances of advertisers placing their ads on your videos.
So how do you create great content? The first thing you need to do is study what topics, niches, trends, etc. draw in an audience. Think of your audience first, and the advertisers will automatically come later.
As your audience grows, so will the list of interested advertisers. As more advertisers see your video as earning potential (for them), your YouTube CPM rates will grow. Your videos will become earning potential for your brand.
The first step is to look at your competition. While you shouldn’t completely copy them, it works – in the beginning – to follow the trends and what is already working. You might want to start by creating similar content that fits with the trends. As you garner more views, make sure you then transition to creating unique content.
2. Study YouTube Analytics
YouTube has an in-built analytics service. It is crucial that you understand how to read the analytics to track the progress of your channel. By looking at analytics, you will understand what is working and what needs work.
Among the metrics that are gathered, your subscriber count, and your video views are the most important. You need to understand which videos garner the most views and which ones are lagging behind. You need to keep track of whether your subscriber count is growing, decreasing, or stagnating.
By having an understanding of YouTube Analytics, you will be better prepared to create a marketing strategy for growing your YouTube channel.
3. Video Title
A catchy title can get you clicks, but it’s the video’s content which will ensure that a user actually watches it. And YouTube no longer takes just clicks/views into account when deciding search rankings. Watch time is the most important metric. So, hence, ensure that the title of the video is catchy, but at the same time, also matches the content within the video.
4. Algorithms, Trends, Popularity
Unfortunately, YouTube’s algorithm can change on a whim. So you can’t really master it. But you can look at what the trends are on YouTube (as previously mentioned) as well as what is popular. This can give you an idea of what content to create. You should also look at recommended videos based on the trending/popular videos you watch.
You should also consider (if appropriate) creating video content that follows a trend outside of your industry. Is there a news story that the world is discussing that could be relevant to your channel? Remember, whenever there is a major story advertizers are seeking the videos that best discuss this story. If this works with your brand’s vision, then go for it.
You should assign someone on your marketing team to research the trends and popular content at all times. These trends can change each month or each week – so you need someone who can always keep an eye on them.
5. Create Original Content
We have advocated so far for following the trends, what is popular, and learning from what your competition is doing. But it is also important to create original content. You have to create content that will keep you on a level playing field with your competition – as well as content that will keep you ahead of your competition.
While an advertiser will latch onto the trends, they also know that they cannot depend on video content that is a mere facsimile of other video content. They want their ads to be seen on unique channels with unique content. While creating original content, however, you still want to operate within a particular framework.
For example, as a general rule advertisers will prefer content that is not explicit, overly controversial, or not safe for work (NSFW). You can attract advertisers by creating such content, however, there will likely be a limited pool of advertisers who will want to target such content.
To create original content, you might want to occasionally go in the opposite direction of your competition. If you see everyone posting videos along the lines of ‘We read NEGATIVE TWEETS!’ you might want to consider reading positive tweets.
There is probably an audience who is tired of negativity and is craving positivity. Similarly, there are advertisers waiting for the opportunity for such videos to be available for them to advertise on.
6. Search Engine Optimization
Your marketing team will already be familiar with Search Engine Optimization (SEO). But many marketers are unaware that YouTube also uses SEO. You can implement keywords in your video’s title and description to increase traffic to it. You can also use hashtags in your description to bring in traffic.
You should focus on making your titles SEO-friendly. Make sure each title always contains at least one relevant keyword. Your titles should also be direct so that they can draw viewers in – without them having to guess what the video might be about.
You should also resist the temptation to use clickbait titles. These might get ‘flagged’ by YouTube users or simply hidden from recommendations. As popular as clickbait might be, they are considered to be ‘in poor taste.’ You should avoid these titles altogether.
Your description should also contain keywords to draw in your audience. Make sure your description is concise and offers a detailed explanation of what your video is about. It is ideal to learn about writing ad copy in order to learn about writing a video description.
If you have already started a channel and put out a few videos, you should first go back to these older videos and update their titles and descriptions to be SEO-friendly. This is a process you should do repeatedly as SEO trends are always changing.
As SEO is challenging and requires to always be on top of the latest trends, you may wish to consider hiring an SEO consultant.
7. Google AdSense
Once your videos are eligible to earn income, you have to sign up for Google AdSense. It is through Google AdSense that you will earn your income from advertisements.
It is crucial that you understand how Google AdSense works. Like YouTube Analytics, you will also be able to see reports through Google AdSense.
These reports will show you the RPM – which refers to the revenue per thousand impressions. This can help you estimate what your earnings might be. There are many other metrics that you can view. Once again, these metrics help you decide what you are doing right and what needs to be improved upon.
8. Know When Advertisers Are On The Lookout
Advertisers will always be on the lookout for videos. An advertiser never stops looking for an opportunity to share ads. There are, however, times when advertisers are particularly ravenous for great content. There are times when there is more opportunity than usual.
For example, if there has been a major news event, advertisers will be hurriedly scouring YouTube for relevant videos that discuss this major news event. There will also be time around major holidays that advertisers are looking for videos to advertise on.
Whenever such a time comes around, advertisers are working harder than ever. You also want to make sure that you are working harder than ever. You want to produce more content during this time. You want your video output to be greater and of higher quality than before.
Producing an unpopular or unsuccessful video once in a while is inevitable. But you want to make sure this doesn’t happen when advertisers are most on the lookout.
9. Know What Advertisers Are Looking For
You also want to know what type of content advertisers are looking for. As long as it fits within your brand’s vision, you should create video content that attracts advertisers. Your focus should be on creating great content – while always having “will this bring in advertisers?” at the back of your mind.
Once you start bringing in advertisements to your video content, you can start looking at your YouTube Analytics more intently. You can see what type of content sits well with advertisers. You should aim to repeat this type of content.
Even when you watch YouTube videos for your own pleasure, you will notice which videos draw in more advertisers. These are the videos that you should focus on replicating. These are the themes and topics that you should focus on producing.
You may notice that certain types of videos draw in more advertisers. For example, advertisers may prefer your longer videos over shorter videos. They might prefer long-form content such as interviews, Q & A sessions, etc., over short clips, short films, or skits. Always replicate what is already working.
You should also learn what advertisers are not looking for. You can see what video content doesn’t attract advertisers. You will also learn what content only attracts a small pool of advertisers (such as the adult-oriented content we previously mentioned). Try your best to avoid creating content that will not draw in advertisers – even if they may draw in an audience.
10. Understand Your Target Market
As we discussed earlier in this guide, your audience comes first and your advertisers will follow along (in most cases). You want to understand what your ideal audience will like. This ideal audience is called your ‘target market.’ You will have a better understanding of their likes as your channel grows.
Using the YouTube Analytics service, you can see which videos your audience responds to the best. Look at the ratio of likes versus dislikes on your videos – this will help you determine what they like and what they wish you hadn’t put out!
By understanding your target market, you will know what type of content they want to see. You will know what type of content will become popular and grow your channel. Advertisers will latch onto what gets the most views and what is most popular with audiences. Always keep your target market first.
You also want to do your research on how to target new audiences. When you wish to expand your audience, learn what content you can create that will resonate with your current audience and future audience.
Save this guide and use it as a reference for future YouTube endeavors. Increasing YouTube CPM rates is not an easy task. But if you follow the steps in this guide, you will surely see an improvement in your channel’s traffic. As your channel grows, so will the interest of advertisers.
By staying on top of the trends and following the best practices, you will create and market video content that will have advertisers happily spending more on advertising fees.