average cpm on youtube

Knowing the average CPM on YouTube helps you choose high-earning niches for your channel & maximize your revenue. Tubersmcn has gathered the most important tips

What Is the Average CPM on YouTube?

CPM stands for cost per mille. It means “cost per thousand as mille is a Latin word meaning thousand. In YouTube, it  is the average cost an advertiser pays for every 1,000 impressions of their ad.

Therefore, a CPM of $5 means paying $5 for every 1,000 times the ad is displayed.

average cpm on youtube

How Much Is the Average CPM for YouTube?

The average CPM on YouTube for skippable video ads is somewhere around $3.68. It is noteworthy that this is only the average, and the actual CPM can be higher or lower based on your niche, audience demographics, and a variety of different factors.

What Are the Key Factors Influencing the Average CPM for YouTube Ads?

Here is a breakdown of key Factors which influence the average CPM on YouTube:

Niche and Average CPM on YouTube

The highest cpm on youtube belongs to the following niches which an advertiser pays more to display their ads on. The highest YouTube CPM niches are:

  1. Generating income online is one of the highest paying cpm niches on youtube (Average CPM: ~$13.52): Since human beings are voracious to generate extra income, YouTube content teaching viewers how to achieve that is in high demand. This includes affiliate marketing, dropshipping, or freelancing.
  2. Digital Marketing is a high CPM niche (Average CPM: ~$12.52): Due to high demands of businesses to reach new clients and customers, content teaching the digital market including SEO, social media marketing, or email marketing is a YouTube niche with high CPM.
  3. Financial Literacy is one of the YouTube Niches with highest CPM (Average CPM: ~$12.00): people seek for learning personal finance and investment; that is why the content about budgeting, investing, or saving for retirement is one of the best high CPM niches.  
  4. Educational Content is a niche with highest cpm (Average CPM: $10.00+): Almost all educational content is in High demand due to the greed for knowing and learning.
  5. Tech, Cars, and Gadgets are high CPM niches (Average CPM: $10.00+):  It is the age of technology, so it can be staring you in the face that content about tech and car such as product reviews, unboxings, or tutorials reach a lot of views.

what is the average cpm on youtube

Reasons Why They Are High CPM Niches on YouTube

Here is a breakdown to explain why the mentioned categories are YouTube niches with highest CPM:

Reasons  Description  Example
Lucrative categories for content Advertisers prefer to pay more to reach those YouTube users having  higher spending power.
  • Finance
  • Investment
  • Luxury Goods
Audience with highest Engagement Users with higher engagement tend to click on YouTube ads, leading to higher return on investment (ROI) for advertisers.
  • Gaming
  • Educational Content
Specific Needs Advertisers are willing to target niches where viewers have specific needs they’re looking to fulfill.
  • Health & Wellness (supplements, losing weight, workouts, fitness programs),
  • Software (for specific fields)
Location of Viewers Ads shown to viewers in some certain regions have higher CPMs.
  • North America (USA, Canada)
  • Western Europe (Germany, France, England)
  • Developed Asian Countries

Audience and Average CPM YouTube Ads

Bottom Line

It can empower you to maximize your advertising revenue if you know what content to create for your YouTube channel. You need to know how to attract advertisers who are willing to pay for your audience. We also recommend reading 12 Best Topics for YouTube Channel to Boost Your Crowd!

 

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