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The next important parameter is watch time – time that users spend watching videos. Watch time can affect the ranking of video in YouTube search results, videos that viewers watch up until the end rank better in the search (Pinsky, 2015). When we are talking about advertising on YouTube we can come across such abbreviation as “CPM” – which means “cost per mille” (“mille” from Latin, means “thousand”) or simply “cost per thousand”. CPM is an indicator important for advertisers, as it is the price that an advertiser pays to show his ads within videos 1,000 times. The relevant indicator for creators is actually RPM (revenue per thousand) - the average amount creator earns for every 1,000 monetized views of his videos. Confusingly, YouTube typically refers to RPM as CPM (Pinsky, 2014). It is very hard to judge YouTube CPM, because the company attempts to keep in secret all the statistical information about the website. They also do not allow their partners to disclose the CPM they earn from ads. That is why all the numbers that we can find in the Internet are very approximate and are not precise. The CPM varies from standard $2.50 per 1000 views to $10 per 1000 views, that gain already popular bloggers (Carmody, 2013). Average CPM in 2014 was about $7.60, down from $9.35 CPM in 2012. In 2017 average CPM decreased to $4 (Sussman, 2017). As we can see CPM rates have decreased very much during these years. It can be caused by enormous growth of new creators. Being inspired by success of YouTube stars that have become rich and famous, every day more and more people start making videos hoping to repeat their success. But now due to the overflow of the market, it is more difficult to become popular and earn good money. The CPM is a variable indicator, it can vary for many reasons. CPM can depend on advertiser’s demand for ads, for example before holidays (such as Christmas or Valentine’s day) the demand will be higher, so CPM will be also higher. CPM also depends on watch time, the more time viewers spend watching a creator’s video, the higher is CPM, on source country, on niche type of video etc. In most cases, creators do not have advertisements on every video. For example, creator’s CPM is $8, but if the ads are enabled only in half of the video, creator will get only $4 per 1,000 views. 21PDF Image | Youtube a new era of TV
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