CPM on YouTube is what advertisers pay for 1,000 ad impressions on your videos, before YouTube takes its revenue share. It tells you how valuable advertisers find your audience, but it isn't what you earn. Your earnings per 1,000 views are shown by RPM, which is always lower than CPM.
You'll find CPM in YouTube Analytics once your channel is monetised. It's the number creators quote most and misunderstand most, so here's what YouTube's own help page says it does and doesn't mean.
The three metrics side by side
| Metric | What it measures | Who it's about |
|---|---|---|
| CPM | What advertisers pay per 1,000 ad impressions, before revenue share | Advertisers |
| Playback-based CPM | What advertisers pay per 1,000 video playbacks where an ad was shown | Advertisers |
| RPM | Your total revenue per 1,000 views, after revenue share | You, the creator |
YouTube adds two differences that explain why RPM is lower. RPM is calculated after YouTube's revenue share, and it counts all views, including ones with no ads. CPM only counts views from videos where ads were shown, and it only includes ads and YouTube Premium revenue.
YouTube's worked example
YouTube's help page uses this example. A video gets 5,000 views. 1,000 of those views show one ad and 500 show two ads, so 1,500 views had ads and there were 2,000 ad impressions in total. The advertiser paid $7.
- CPM: $7 divided by 2,000 impressions, times 1,000, gives $3.50.
- Playback-based CPM: $7 divided by 1,500 monetised playbacks, times 1,000, gives $4.67.
That's why playback-based CPM is often higher than CPM. When a video carries more than one ad per view, the cost is spread over fewer playbacks than impressions.
Why your revenue isn't CPM times views
YouTube spells this out: your revenue won't equal your CPM multiplied by your views. CPM reflects what advertisers pay, not what you receive, and not every view includes an ad. Some videos aren't eligible for ads because they aren't advertiser-friendly, and some views go without an ad because none was available. YouTube calls the views that did include ads monetised playbacks.
So if you want to forecast earnings, RPM is the better guide. My explainer on what RPM means on YouTube covers it in full.
What CPM leaves out
YouTube's comparison table shows how narrow CPM is. CPM includes only revenue from ads and YouTube Premium, and only views from videos that showed ads. RPM is wider: it adds channel memberships, Super Chat and Super Stickers, and for Shorts it counts all engaged views.
Neither metric covers everything you earn around YouTube. YouTube says RPM doesn't include merch sales, brand deals and sponsorships outside its own creator partnerships, or work that comes to you indirectly, such as consulting or speaking. And because RPM counts every view, it can fall when you get more views that don't carry ads, even if your revenue stayed the same.
Why your CPM goes up and down
YouTube says changes in CPM over time are normal, and gives these reasons:
- Time of year. Advertisers bid higher or lower by season, and many bid higher just before holidays.
- Where your viewers are. Advertisers choose which places to reach, and competition differs by country, so a shift in your audience's geography can move CPM.
- Which ad formats are available. Different ad types tend to carry different CPMs, so a change in the mix of available ads shifts the average.
That geography point matters. Two channels with the same views can see very different CPMs simply because their audiences live in different countries. It's a reason not to compare your CPM with a creator in another market.
Copyright claims can change those numbers, and my guide to YouTube Content ID explains how they work.
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How to raise the revenue that CPM feeds into
YouTube's suggestions for improving RPM are the practical ones, because RPM is what reaches you:
- Turn on monetisation on all eligible videos.
- Turn on mid-roll ads where they fit.
- Turn on other revenue features, such as memberships and Super Chat, so you're not relying on ads alone.
If you're not sure whether a video is earning at all, check if a YouTube video is monetised first.
My verdict
Watch CPM to understand how advertisers value your audience and how that changes by season, but plan your income around RPM. A falling CPM in January after a strong December is normal, not a sign your channel's in trouble.
Another way viewers can support a channel is covered in my guide to Super Thanks.
Frequently asked questions
What does CPM mean on YouTube?
CPM is the cost an advertiser pays for 1,000 ad impressions on YouTube, before YouTube's revenue share.
What is the difference between CPM and RPM on YouTube?
CPM is what advertisers pay per 1,000 ad impressions before revenue share. RPM is your total revenue per 1,000 views after revenue share, so it's lower.
What is playback-based CPM?
Playback-based CPM is what advertisers pay per 1,000 video playbacks that showed at least one ad. YouTube says it's often higher than CPM.
Why did my YouTube CPM drop?
YouTube says CPM changes with the time of year, shifts in where your viewers are and changes in the ad formats available.
Is a high CPM good on YouTube?
Yes, in the sense that YouTube calls CPM a good indicator of how valuable advertisers find your videos and audience. What you earn still depends on how many views carry ads, which RPM shows.
