The trend of earning money from YouTube is flourishing in Brazil, not only for the young but also for the elderly. This invisibility makes many of us curious that YouTube is a promised land that's easy to make money, right? Does every person who sees a clip you post on YouTube turn your channel into a gold mine? Or just making money from it is so easy that it just arouses the passion of getting rich from men and women in the late afternoon…
Want to know how easy it is to create YouTube? We must seek the answer to the question: how and from where does YouTube pay you? If you think it takes a lot of people to watch, like and subscribe to your channel to earn the amount of money reported by the press, you are wrong.
To put it simply, the profit that YouTube channel owners can make is not just the number of channel followers, but mostly the ads attached to each video. According to experts, there are 3 indicators to know the profit made from YouTube, including CPM, CPC and recently YouTube mentioned the index – RPM.
CPM- amount of advertising paid for your video
The definition of CPM is understood by YouTube as an acronym for “cost per 1000 display”. Cost per thousand impressions (CPM) is a metric that shows how much advertisers pay to show ads on YouTube.
That is, you receive money from advertiser payments when the ad runs on your video. The more an advertiser pays for that ad, the more money you make. CPM is a useful metric that shows how valuable your advertisers and viewers are in helping them achieve their own goals.
CPM ads are not always displayed, it depends on the geographic location of the video viewer, which means that 100% of video viewers will always see the ad. Normally in Brazil, the efficiency falls in the range of 30-50%.
Currently, the CPM index in Brazil is around US$ 1.57. That is, video content creators will earn 1,570 USD (about 36.2 million VND) if they reach 1 million views from Brazil, while abroad the highest CPM ranges from 4.59 to 15.47 USD. / CPM. (Ad from US$ 5.2 to US$ 15.47 per 1,000 views).
CPC- the key to making money at your fingertips
CPC stands for “Cost Per Click”: Pay each time the audience finds it attractive enough to see and click on the ad to the original page featuring the product. This is an older form of presence than CPM.
In the same channel, CPM and CPC can be applied in parallel, depending on the Youtube videos as well as the topic of cooperation with brands, which will eventually be combined to share the channel owners' profits. CPM and CPC rates vary by country, region, topic, and video-related content.
The formula for CPC = Total ad campaign value / number of clicks.
Example: When an advertiser buys 600,000 hits with a CPM of VND40,000, the advertiser will end up paying VND24 million for the entire campaign. With CPC advertising, advertisers pay for actual site visits. You can agree to 200 VND/CPC.
Brazil is currently not a country selected and optimized by YouTube for high CPM/CPC. In fact, ten times smaller than many other countries in the world. According to the average CPC table for each country, Brazil is the lowest, with only 0.03 USD. At the top of the country it is many times better than Brazil, so if you make a channel in English, reaching countries with high CPC is very good, you will earn more money.
Therefore, some YouTubers in Brazil have turned to English content to attract foreign viewers and increase channel profits. But making YouTube in English is not easy and simple.
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RPM – your revenue image
It is an acronym for the phrase “revenue per thousand impressions” – “revenue per 1,000 impressions”. This is a metric that shows the actual total revenue from content (from advertising and otherwise) after YouTube's price drops.
45% of the total advertising money will be retained by YouTube, the remaining 55% will go to the channel owner. So don't listen to anyone talk about someone's rosy path on YouTube when you started out, because you probably weren't told that half the money will go to YouTube. RPM is based on multiple revenue streams including advertising, affiliate resources and YouTube Premium revenue.
The formula RPM = (Estimated Earnings / Page Views) x 1000.
Example: Assuming you earn 5 million VND with 13,000 page views, your advertising RPM would be (5 million VND / 13,000) x 1,000 = 384,615 VND. After deducting YouTube revenue, you will receive 2.75 million VND for 1 day.
RPM is an overview of your current YouTube monetization rate. A higher RPM means you're making more money per 1000 views, while a lower RPM means you're making less money.
RPM is a useful indicator of the effectiveness or inefficiencies of your strategy, whether up or down. By understanding the factors that drive RPM, you can find opportunities to improve your monetization strategy.
The introduction of RPM on YouTube doesn't mean that CPM is no longer important. Since the better the CPM, the advertiser will have to pay more for that ad and the content creator will be entitled to that amount. If a YouTube channel has a high CPM, that is also an indication of its worth.
YouTube is making a number of changes to make it easier for creators to earn more from ads, including allowing creators to insert ads between videos longer than 8 minutes. In the past, typically only videos longer than 10 minutes could have mid-roll ads enabled.
Conclusion
Through this article, you will probably have the answer to the question: “How does YouTube pay you and where does the money come from?”. Overall, the social network YouTube is a complicated virtual world, and creating YouTube is not as easy as people think. Above all, the most important thing is to be creative and work to meet the community standards set by YouTube to ensure CPC, CPM, and RPM metrics.
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