In a nutshell
- YouTube ad revenue varies widely based on factors such as audience demographics and engagement.
- On average, a YouTube video with 100K views might earn between $200 to $2,000.
- Additional revenue sources include sponsorships, affiliate marketing and merchandise sales.
YouTube is one of the best places for creators to make a living off of their content. Though AdSense, creators of various sizes can turn a profit, but how much can you expect to make if one of your videos rakes in 100K views?
YouTube’s pay for 100k views: Understanding YouTube revenue
YouTube monetization is facilitated through ads displayed on videos. Advertisers pay YouTube to show their ads, and creators get a portion of that revenue. The amount earned depends on several factors:
Cost Per Mille (CPM): CPM, or cost per mille, is a crucial metric in YouTube earnings, reflecting the amount advertisers are willing to pay for every thousand views. CPM rates vary widely based on factors like the video’s niche, audience location and the time of year. Typically, CPM rates range from $2 to $10 but can be higher depending on the advertiser’s industry and the quality of the audience.
RPM (Revenue Per Mille): This reflects the actual revenue earned per thousand views after YouTube’s cut. YouTube takes a 45% share of ad revenue, leaving the creator with 55%. Additionally, RPM includes revenue from YouTube Premium, Super Chats, Super Stickers and channel memberships.
Why a channel’s CPM is unique
Various factors contribute to the differences in CPM rates between YouTube channels:
Audience demographics
One of the most significant factors influencing CPM is the demographics of a channel’s audience. Advertisers are willing to pay more to reach specific demographics, particularly those with higher spending power.
For example, audiences in the United States, Canada and Europe generally attract higher CPMs compared to audiences in lower-income regions. Additionally, advertisers value audiences in higher age brackets who are more likely to make purchasing decisions. A fishing channel — with an audience that is primarily made up of American adults — will likely have a higher CPM than a Spanish-language gaming channel with an audience made up primarily of South American teenagers.
Niche and content type
The niche or content type of a channel also plays a critical role in determining CPM. Advertisers in certain industries are willing to pay more to reach their target audience. For example, finance, technology, health and business-related channels typically have higher CPMs because the potential customer value is greater. Advertisers in these sectors are also more likely to have higher marketing budgets. On the other hand, entertainment, gaming and general lifestyle channels might have lower CPMs because the ads are less likely to lead directly to high-value sales.
However, don’t let this deter you from making the content you want, as CPMs are, again, case-by-case. A gaming or lifestyle channel — depending on their audience — can have a CPM that competes with the more “valuable” niches, and vice versa.
Viewer engagement
Higher viewer engagement can lead to higher CPM rates. Engagement metrics such as likes, comments, shares and watch time indicate to advertisers that the audience is active and interested, which can make the ad space more valuable. Videos that keep viewers watching longer also provide more opportunities for ads to be shown, increasing potential revenue. Channels with strong community engagement often attract better-paying advertisers willing to invest in an engaged and attentive audience.
Ad placement and types
The types and placements of ads on a video can also affect CPM. When monetizable, creators have some control over the types of ads that appear on their videos. These preferences may impact the channel’s CPM.
For example, channels that use skippable ads might have lower CPMs compared to those using non-skippable ads because advertisers are guaranteed that their message is seen in the latter case. Additionally, channels that effectively incorporate mid-roll ads (ads placed in the middle of videos) can potentially increase their CPM as these ads are typically more valuable due to their placement during the video when viewer attention is high.
Seasonality and advertiser demand
CPM rates can fluctuate based on seasonality and advertiser demand. During high-demand periods, such as the holiday season, back-to-school or major events like the Super Bowl, advertisers increase their budgets to reach a broader audience, leading to higher CPMs. Conversely, during slower periods, CPMs might decrease as advertisers reduce spending. Channels that can adapt their content to align with these high-demand periods might see a boost in their CPM rates.
Calculating pay from 100K YouTube views
To calculate potential earnings from a video with 100K views, we need to know what the channel’s cost per 1,000 impressions (CPM) is. Let’s say it’s $5.
If a video has a $5 CPM, 100K views would generate $500. This is the total amount that YouTube is paid for the 100K impressions your video provided to different advertisers. YouTube takes a 45% cut of the ad revenue, leaving creators with 55%. This means that you’d be left with $275 earned from the video.
CPM can vary from video to video. Factors like the video’s subject matter and time of year the video is posted will determine what the video’s CPM will be. The amount of money a video can make isn’t solely restricted to ad revenue, though.
Separate from ad revenue, your audience can give a “Super Thanks” on your eligible videos. These are essentially donations, and are a great way for viewers to support their favorite creators.
Lastly, it’s important to note that CPM isn’t always completely accurate. This is because not all views on YouTube have an ad. According to YouTube, these are the main reasons your earnings aren’t accurate with your CPM:
- The video is not advertiser-friendly.
- Ads are turned off for that video.
- There isn’t an ad available to show to that particular viewer. Advertisers can choose to target specific devices, demographics, and interests. Your viewer may not match this targeting. Learn more about available targeting methods for video ads.
- A range of other factors, including the viewer’s geography, how recently they’ve seen an ad, whether they have a Premium subscription, and so on.
Raking it in
There you have it. That’s how much YouTube will pay you if one of your video gets 100K views. It all comes down to CPM.