Understanding YouTube RPM and Your Channel's Real Revenue.

YouTube RPM (revenue per thousand views) is an estimate of the revenue of a YouTuber, which is given per 1,000 views of the video. The rate of your calculations should be taken into consideration when determining the genuine sales potential of your channel. Here's what you need to know, here’s what you need to know:

What is YouTube RPM?

YouTube RPM is the ratio of your estimated AdSense income per every one thousand views, which is obtained by dividing your estimated AdSense revenue by your number of views and multiplied by 1000. On the other hand, if you had AdSense earnings of $100 from 50,000 views in a month, your RPM would be $2 ($100 / 50,000 x 1,000).

So RPM shows you in average for every 1,000 views you earn per your ad rate. It's a measure or at the moment how much money you can earn off the ads that are on your YouTube channel. Since earnings per one video can vary that much, it is critical to understand how different platforms pay their creators.

Several factors impact the RPM of your channel

• Video content - Advertiser-friendly content about your chosen topic with higher in-demand will more likely have better RPM. RPM for controversial and challenging media is lesser.
• Viewer demographics - The countries rich in the USA, Canada or UK have the higher RPM viewing than the countries with developing economy.
• The type of traffic- Organic traffic’s RPM will be higher than the traffic coming from external sites or social media. Long-time and active subscribers generate a much higher dollar per the number of plays (RPM) compared to the rest of the audience.
• Advertiser demand - Advertisers place higher bid for ad space when popular stories or fads are hot in the market, resulting in high revenue. The tech, finance and news fields significantly make the higher RPM.
• Time of year - RPM varies with advertiser demand during certain festivals such as the Christmas or any other regional occurrences.
• Ad density - There is an increase in revenues with the number and duration of the ads, but it takes a toll on the user experience through the volume and duration of the ads. Finding just the right equilibrium of the 3 facets raises the total RPM and this is what our analysis suggests.

Once you know your RPM range, you can estimate future earnings for your channel by following these steps, once you know your RPM range, you can estimate future earnings for your channel by following these steps:

1. Find out your RPM at the moment - Have a look at your latest YouTube video RPM to have data of what is your current RPM.
2. Estimate views for a month ahead - The views can be estimated in accordance with the growth rate of your current subscribers and your view patterns. Be very keen on the facts.
3. Let's say you receive 10k views per month. That is 5k viewers. Approximately only 50% of views are typically monetized by ads. So, let's multiply the estimated monthly views by 0.5.
4. Following which we would again need to multiply the above number by your RPM.

For example, if your RPM is $4 and you estimate 200,000 monetized views per month, then your earnings estimate would be, For example, if your RPM is $4 and you estimate 200,000 monetized views per month, then your earnings estimate would be:

200,00 multiplied by 0.5 equals 100,000 monetized views.

100, 000 Views x 4 RPM = 400 Dollars per month

Input your RPM here and the numbers will start to appear on the website so you have a clear idea of the amount of real-life earnings you are looking at. But don`t forget that there is a possibility that your real income will be higher or lower than the projected earnings due to the rate fluctuations of the ads, and the number of views. But this is a good first step to have.