You might have seen some of your favourite YouTubers saying they will be taking a break during January. They will most likely be telling you this is because they are burnt out or need a break – when in reality, the most likely reasoning is low CPM’s!
CPM stands for ‘Cost Per Mile’and is how much an advertiser pays the creator per 1,000 impressions. For example, if the CPM is $3 and the video get 100,000 views the creator would earn approximately $300 from that video. An interesting point is the CPM is not fixed and can change video to video, day by day and the biggest change is each month.
So in December, when coincidentally everyone seems to do ‘Vlogmas’, it means they’re uploading a video every single day when the CPM at it’s highest. It is the month creators make the most money from advertisers.
This is because all the retail shops and online retailers are blowing their advertising budgets to help their Christmas / Holiday sales. If you have a YouTube channel and you look at your CPM for December you probably won’t see much of a massive jump, but that’s because it’s been slowly climbing in the right direction for the previous months. As well with advertisers utilising other holidays such as Halloween and thanksgiving.
But when it comes to January, pretty much everyone will see their CPM’s drop from anywhere to 50%-75%. This means a lot of YouTubers who are driven by numbers and money realise that uploading daily for sometimes less than $1 per 1,000 views isn’t worth it.
The reason for the CPM dropping so much is the fact most companies are still ironing out their marketing budget for the new year and there is no events/holidays for advertisers to focus on in January. With companies not having their budgets sorted this early in the year, you might also realise you see less sponsored #Ad content.
Don’t worry though, we are sure you will see your favourite YouTubers get back into uploading at the beginning of February when the CPM slowly starts to climb again, as advertisers get ready for Valentines day!