"Looking at your CPM is vanity. Looking at your RPM is sanity. One is what the advertiser pays; the other is what you can actually spend at the grocery store."
If you open your YouTube Studio analytics right now, you will see two very similar numbers that tell two very different stories. One is likely high and exciting (CPM). The other is significantly lower (RPM).
Understanding the gap between these two numbers is the secret to unlocking higher revenue in 2025. In this guide, we will break down the math, explain where the money "leaks" out, and give you actionable steps to raise your RPM.
The 5-Second Definition
CPM (Cost Per Mille): The price an advertiser pays to show an ad 1,000 times.
RPM (Revenue Per Mille): The money you actually pocket for 1,000 video views (after YouTube's 45% cut and unmonetized views).
1. CPM: The Advertiser's Price Tag
CPM stands for Cost Per Mille ("Mille" is Latin for thousand). This number represents how much a brand like Nike or Squarespace is willing to pay to display their ad 1,000 times on your channel.
Think of CPM as the "market value" of your audience.
- If you have a Finance audience, advertisers might bid $30 CPM.
- If you have a Gaming audience, advertisers might only bid $4 CPM.
However, you do not get this money. This is simply the gross transaction between the advertiser and YouTube.
2. RPM: Your Actual Paycheck
RPM stands for Revenue Per Mille. This is the metric that actually matters to your bank account. It answers the question: "If I get 1,000 views today, how much money will I make?"
Why is RPM always lower than CPM?
There are two major "leaks" that cause your RPM to be lower than your CPM:
- YouTube's Cut (The Revenue Split): YouTube takes 45% of all ad revenue. You keep 55%. If the CPM is $10.00, your share is immediately cut to $5.50.
- Unmonetized Views: Not every viewer sees an ad. Some use AdBlock. Some leave before the ad loads. CPM only counts ad impressions. RPM counts total video views. If 30% of your audience uses AdBlock, your RPM drops by another 30%.
| Feature | CPM (Cost Per Mille) | RPM (Revenue Per Mille) |
|---|---|---|
| Who pays attention? | Advertisers & YouTube | You (The Creator) |
| Does it include YT's Cut? | No (Gross Amount) | Yes (Net Amount) |
| Includes Premium/Super Chat? | No (Ads Only) | Yes (All Revenue) |
| Use Case | Checking audience value | Estimating monthly income |
3. Revenue Engineering: How to Increase RPM
You cannot directly control CPM (that's up to advertisers), but you can engineer your RPM. Here are three data-backed strategies for 2025.
Make videos longer than 8 minutes. This allows you to place ads in the middle of the video. If a user watches two ads instead of one, your RPM effectively doubles for that view.
Strategy 2: Target High-CPM Niches
We have compiled a list of the Highest Paying Niches for 2025. Shifting your content slightly from "General Vlog" to "Tech Review" or "Personal Finance" can triple your CPM, which drags your RPM up with it.
Strategy 3: Diversify Revenue Sources
Remember, RPM includes Channel Memberships and Super Chats. If you enable these features and mention them in your videos, your RPM will increase even if your ad views stay the same. This separates your income from the fluctuations of the ad market.
4. Frequently Asked Questions
Is a $2.00 RPM good?
The global average RPM is between $1.25 and $2.50. If you are above $2.00, you are doing well. However, in niches like Finance, a "good" RPM is closer to $15.00.
Does Shorts RPM work the same way?
Shorts RPM is significantly lower, typically between $0.01 and $0.06. Because ads are scrolled past quickly, advertisers pay much less for Shorts impressions.
Conclusion
Don't obsess over your CPM—it's a vanity metric. Focus on your RPM. That is the number that pays your rent.
By creating longer videos, targeting valuable keywords, and enabling fan funding features, you can take control of that number.
Want to see how these numbers translate to yearly income?
Use our Revenue Calculator to forecast your earnings →