RPM stands for Revenue Per Mille, which translates to revenue per thousand views. In the context of YouTube, RPM refers to the estimated average earnings a creator generates per thousand video views.
YouTube calculates RPM by dividing the estimated revenue earned from ads and other sources by the total number of video views, then multiplying the result by 1000. It provides creators with insights into their earnings performance and allows them to analyze and compare their revenue generation across different videos, channels, or time periods.
It’s important to note that RPM is not the same as CPM (Cost Per Mille), which is the cost an advertiser pays per thousand ad impressions. RPM reflects the revenue earned by the creator, while CPM represents the cost incurred by the advertiser.
YouTube’s RPM metric takes into account various factors, including ad formats, ad impressions, ad performance, geographic location, viewer demographics, and the overall monetization of the channel. RPM can vary significantly depending on the content niche, audience engagement, ad fill rates, advertiser demand, and other variables.
Creators often track and analyze their RPM to assess their revenue growth, identify successful videos or content strategies, and make informed decisions to optimize their monetization efforts on YouTube.