We analyzed data from 143 YouTube channels along with data from DataForSEO (Google Ads API), to better understand how YouTube CPM works and to help identify approaches to increase YouTube Adsense earnings for creators.
Specifically, we looked at:
We tested our leanings from this case study by applying it to a new channel. Guess what! we managed to increase YouTube earnings to $21,201.75 (28 days revenue).
Here is a Summary of Our Key Findings:
We have detailed data and information on our findings below.
This is a lot of data all in one place, and it can be difficult not to feel overwhelmed by it all. To help with that, we also added a section below on how you can use this information and try to increase your YouTube channel CPM. We hope you benefit from the information we have featured on this post.
CPM Terminology & Background
What is YouTube CPM?
The cost an advertiser pays for 1,000 ad impressions. An ad impression is counted anytime an ad is displayed
What is YouTube RPM?
It is a metric that represents how much money you’ve earned per 1,000 video views. RPM is based on multiple revenue sources including: Ads, Channel Memberships, YouTube Premium revenue, Super Chat, and Super Stickers.
CPM vs RPM
While page RPM is a publisher metric measuring estimated earnings and ad impressions for every thousand page views, CPM is an advertiser metric that measures estimated cost for a thousand ad impressions.
Why are CPMs Important?
- They tell you how efficiently your content has been monetized. In other words, did your video on for example, how to make lasagne need 10,000 views or 5,000 views to generate $10?
- CPMs inform your content strategy — what type of content to make and which regions to target
Which Ad Format is the Best for YouTube Creators?
For monetized YouTube channels these ad formats are currently available.
Which YouTube ad format generates the highest revenue?
From the data we crunched, following is the ranking of ad format type by revenue.
Which YouTube ad format generates the highest CPM?
While everyone’s breakdown varies, majority of our YouTube ad revenue came from Skippable video ads, this is definitely a “must-on” ad format for content creators.
CPM Rates by Country
The strength of local economies can create noticeable differences between the average CPM for each country, especially based on local consumer purchasing power.
YouTube Niches with Highest CPM
When starting a YouTube channel with the goal of monetization using YouTube ads, this is important. What we noticed is that the most profitable YouTube niches vary based on the country.
Let’s take a look at the best YouTube niches to make money in the US, Canada, the UK, and Australia.
Also keep in mind that targeting the right niches can be even more beneficial when you combine the knowledge with the top-paying keywords.
Profitable YouTube Niches in the US
In the US, insurance is comes up as the highest paying niche. This is a very broad niche and contains several types of insurance like health, auto, home and life insurance.
Profitable YouTube Niches in the UK
Insurance wins the profitable niche in UK too. None of the niches even come close go insurance, with Marketing and Advertising being the second most.
Profitable YouTube Niches in the Austria
Australia’s most profitable niches closely resemble the UK. Again, insurance is the clear winner here.
Profitable YouTube Niches in the Canada
Overall, Insurance, Marketing & Advertising, and the Internet & Telecom niches are the most profitable across the board, which can be good to know if you are targeting audiences across multiple countries.
Seasonal Trends and CPM
This one may be the most important of all, because it’s the one that affects CPMs most.
The seasonal variation affect CPMs the most. Advertising is based on supply and demand. During the major advertising periods of the year (eg. Holidays, Back to School, …), CPMs can be up to 4 times higher than average while brands fight to have their advertisements displayed over others.
Unfortunately the flip side of these elevated CPMs is the short periods of weak CPMs following major ad spending seasons, notably in January each year.
