What is the key difference between RPM and CPM and how does it influence channel strategy?

The key difference between RPM (Revenue per Mille) and CPM (Cost per Mille) is that RPM represents the actual revenue a channel earns per thousand views after YouTube's share, while CPM represents the cost advertisers pay for one thousand ad impressions. RPM is a net figure reflecting the creator's earnings, whereas CPM is a gross figure indicating advertising costs. This difference influences channel strategy because creators should focus on optimizing factors that directly impact RPM, such as audience retention, engagement, and ad suitability, to maximize their earnings. While increasing CPM is beneficial, it's more important to create content that viewers watch and engage with to drive up RPM and improve overall monetization performance. Understanding this distinction allows creators to prioritize content and strategies that directly translate to higher revenue for their channel.