More than 4 billion videos are viewed daily on YouTube. Clearly, the user experience is already quite good.

Yet, YouTube unveiled a new metric called Revenue Per Mile (RPM), which will show how much a creator earned per 1,000 views, making the creator’s experience more enjoyable & beneficial. 

 

YouTube creators earn money in a no. of ways – through advertising, subscriptions, donations, live-streaming features, and YouTube Premium revenue. By viewing the RPM, one can gain a perspective of the overall earnings and understand how to improve the monetization of their presence on the platform.

 

Till now only cost per mile, CPM metric was available. Both of them might sound similar but they are two very different things. RPM is more useful to the budding creators as now they can know where their monthly income is coming from. As RPM shows a creator’s total revenue (both from ads and other monetization areas) after YouTube takes the cut, while CPM measures the cost of every 1,000 ad impressions before YouTube takes its share of the revenue.

 

In layman terms, CPM is an advertiser-focused metric, while RPM focuses on creators!

 

Basically, RPM includes the total number of video views, including videos that weren’t monetized. This helps creators gather insights as to how much they might be missing out on revenue-wise from videos that generate views but aren’t eligible for monetization and how they can change that so that in future all their videos are monetized.

 

In the past few years, monetization has changed a lot. With channel memberships (subscriptions), live chat features like Super Chat (donations), and merchandise shelves on creators’ channels, and now the RPM metric, it surely shows that YouTube is supporting the creators.

 

Introducing a metric like RPM- which breaks down each revenue stream for creators, shows how YouTube is focussing on transparency with their users, along with it, YouTube is also making some other changes which might roll out soon!

So, Stay Connected, Stay Safe & Do Your Thng!