If you are serious or really want to make money from a YouTube account that you manage, this means you not only need to know the methods but also to know the terms used in monetizing your YouTube videos. Next we will provide definitions of the terms!
Definition of CPM
CPM stands for Cost per Mille. This term is adapted from Latin which literally means per thousand. Regarding the monetization of videos on your YouTube, there is a formula used to determine how much your income is:
Revenue = CPM x (total impressions / 1000)
So, we divide the number or total number of impressions by the number 1000, because the CPM price applies 1 $ per 1000 impressions. Confused to count? Don’t worry, we will give you an example of the calculation so you can imagine how much money you can make from your YouTube with the parable of 1 $ totaling 10,000 Rupiah:
1000 views / $ 1
10,000 views / $ 10
100,000 views / $ 100
1,000,000 views / $ 1000
10,000,000 views / $ 10,000
The amount of money paid can also go up when on holidays such as Christmas or Eid. The amount can be influenced by the time, content and gender of the visitor. The total money is also actually varied, starting from 50 cents to 10 $ per thousand impressions. On Google AdSense, impression is the number of pages containing ad units that appear. Finally, for countries that use English as a native language, the CPM is higher than for those who do not.
Definition of RPM
RPM stands for Revenue per thousand impressions. In this case, YouTube takes a 45% discount on ad revenue generated through your YouTube channel from the total RPM. The formula is:
Revenue = Income ÷ Monetized video playback x 1000
Youtube Partnership Provisions – Update 2019
Youtube requires a total duration of video for 4,000 hours and with 1,000 subscribers in the last 12 months, this is intended for a channel to be able to enter the YouTube Partner Program. The benefit of joining the program is that a Channel can enter a link to the website at the end of the video. In addition, the channel can advertise on any of their videos.