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For Creators Glossary Term

CPM (Cost Per Mille)

Definition

The amount advertisers pay per 1,000 ad impressions on a YouTube video. CPM is a key metric that influences how much revenue a Creator's channel generates from advertising.

Understanding CPM (Cost Per Mille)

CPM, or Cost Per Mille, represents the price advertisers pay for every 1,000 ad impressions served on YouTube content. The term "mille" comes from Latin, meaning one thousand. CPM is one of the most important metrics in the YouTube advertising ecosystem because it directly affects how much revenue flows to Creators and, by extension, to Channel Revenue Token (CRT) holders.

CPM rates vary significantly based on several factors. The advertiser's target audience plays a major role—finance, technology, and business niches typically command higher CPMs than entertainment or gaming content. Seasonality also matters: CPMs tend to spike in Q4 (October through December) as advertisers increase spending for holiday campaigns, and they often dip in January when advertising budgets reset.

Geography is another critical factor. Views from the United States, United Kingdom, Canada, and Australia generally carry higher CPMs than views from other regions. This means a Creator whose audience is predominantly US-based may generate more ad revenue per view than one with a global audience.

It is important to distinguish CPM from RPM (Revenue Per Mille). CPM reflects what advertisers pay YouTube, while RPM reflects what the Creator actually earns after YouTube takes its share. For Investors evaluating CRT offerings, RPM is often the more relevant metric because it represents the revenue pool from which distributions are derived.

CPM fluctuations are a normal part of the YouTube ecosystem and represent one of the risk factors associated with CRT investments. A decline in CPM rates could reduce the revenue available for distributions to CRT holders.

Key Points to Remember

  • CPM (Cost Per Mille) is regulated by the SEC under Regulation Crowdfunding
  • All investments carry risk — past performance doesn't guarantee future results
  • Review all offering documents carefully before investing

Related Terms

Frequently Asked Questions

Do I have to pay back Investors?

You don't make direct payments to Investors. GigaStar handles all distribution processing. A percentage of your YouTube revenue is automatically shared with CRT holders as Monthly distributions. If your revenue decreases, distributions decrease proportionally—there is no fixed amount owed.

What happens after the revenue share term ends?

When the contractual term expires (e.g., after 3 or 5 years), distributions to CRT holders cease, and you no longer share YouTube revenue with those Investors. CRTs associated with that offering expire, and you retain 100% of your YouTube revenue going forward.

Is this a loan I have to repay?

No. A CRT offering is not a loan. Creators do not make fixed repayments to Investors. Instead, Investors receive Monthly distributions based on the Creator's actual YouTube revenue. If revenue declines, distributions decrease accordingly—there is no fixed repayment obligation.

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