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.
- Impression is each time a user sees the ad.
- Cost per Impression is the amount an advertiser pays each time a user sees the ad.
Therefore, a CPM of $5 means paying $5 for every 1,000 times the ad is displayed.
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:
- 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.
- 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.
- 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.
- 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.
- 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.
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. |
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| Audience with highest Engagement | Users with higher engagement tend to click on YouTube ads, leading to higher return on investment (ROI) for advertisers. |
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| Specific Needs | Advertisers are willing to target niches where viewers have specific needs they’re looking to fulfill. |
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| Location of Viewers | Ads shown to viewers in some certain regions have higher CPMs. |
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Audience and Average CPM YouTube Ads
- Age of the Audience: Ads which are targeting younger audiences especially Gen alpha tend to have lower CPMs.
- CPM Rates YouTube by Country: Displaying ads on YouTube in USA, Canada, Western Europe, and developed Asian countries lead to higher CPMs.
- Interests and Average CPM on YouTube: Certain users with specific interests attract a higher CPM.
- Engagement and Average CPM of Youtube: Videos with higher view duration and engagement in channels with a significant subscriber base and strong reputation can potentially lead to a higher CPM.
- Ad Format and Average CPM on YouTube: Non-skippable ads tend to have a higher CPM since the audience are forced to watch them. In-stream video ads also have higher CPMs because they are integrated within the video.
- Trending Topics and Average CPM on YouTube: Content hopped on the current trends tend to have higher CPM due to increased advertiser interest.
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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