YouTube Is Poised to Overtake Spotify as Music’s Biggest Bankroller

By: Tim Ingham

YouTube’s global head of music Lyor Cohen revealed last week that YouTube has paid out over $4 billion to music rights-holders in the prior 12 months. This money was generated cumulatively by YouTube’s “twin engines” of 1. subscriptions to YouTube Music and 2. the cut of advertising on music videos that YouTube pays out to record companies and music publishers. In the latter category, amateur, user-generated content (UGC) — think cat videos soundtracked by Lady Gaga tunes or influencer cooking vlogs using Diplo in the background, rather than official artist music videos — was directly responsible for 30 percent of the $4 billion total, said Cohen…read more.

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$0.45 USD - $4.00 USD

Note: The accepted formula that Auxiliary Mode Inc. uses to calculate the CPM range is $0.45 USD - $25.00 USD.

The range fluctuates this much because many factors come into play when calculating a CPM. Quality of traffic, source country, niche type of video, price of specific ads, adblock, the actual click rate, watch time and etc.

Cost per thousand (CPM) is a marketing term used to denote the price of 1,000 advertisement impressions on one webpage. If a website publisher charges $2.00CPM, that means an advertiser must pay $2.00 for every 1,000 impressions of its ad. The "M" in CPM represents the Roman numeral for 1,000.

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