The Confusion That Costs Creators Money
RPM and CPM are often confused. Understanding the difference is fundamental.
What is CPM?
CPM = Cost Per Mille (what advertisers pay).
Formula: CPM = (Advertiser Spend / Impressions) × 1,000
What is RPM?
RPM = Revenue Per Mille (what you earn).
Formula: RPM = (Your Earnings / Views) × 1,000
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Key Differences
- CPM is gross, RPM is net
- CPM is on impressions, RPM on views
- RPM is always lower than CPM
Improve Both
- Target US/UK audiences
- Choose high-value niches
- Make videos over 8 minutes
- Improve retention