Google Adsense : Detailed information on CPC, CPM, CTR and RPM

Understand Google Adsense CPC-CPM-CTR-RPM Terms

Google Adsense is a very popular contextual advertising program for your blog to make money online. Revenue in Adsense is generated either per click or per impression basis. In this post, I'll be talking about CPC, CPM, CTR and RPM. These are the terms which will help you to better understand how Google Adsense pays.There are many publishers who make money online from Google Adsense. We know that Google Adsense is the best advertising programs for a blog. Google's Adsense earning is based on CPC and CPM. Every valid click gets you paid some money.

Before we move on, we need to know about the following basic terms:

Clicks : The number of times an ad was clicked.
Impression. The number of times a particular item was seen on a web page. Impressions can be further classified into page view, page impressions and ad impression.

Page view : page view is when a user views a web page displaying Google ads. If the user has viewed a page twice, no matter how many Adsense ads will be there, two page views will be counted.

Page view and page impressions are identical.

Ad impression : Ad impression is when an individual ad is displayed on a web page. Let say your web page has 3 Adsense units and this page has viewed by a user 2 times. Your page view will be 2 and ads impressions will be 6 (3*2).

Now let's get on to CPC, CPM, CTR and RPM

Cost-Per-Click (CPC)

CPC is the amount you earn when your Adsense ads get a click. CPC is the amount that Google pays to publishers for every valid click. The CPC for any ad is determined by advertisers. CPC is keywords specific and that is the reason why keywords are important. Different keywords have different CPC. To find out the high CPC keywords, Google
Adwords tool can be used. It is a free tool that Google provides and does the job nicely.

Cost-Per-Thousand (CPM)

CPM means how much you earn for 1000 ad impressions. As a publisher, you will earn money each time a CPM ad is served on your blog.

ClickThrough Rate (CTR)

CTR is the number of ad clicks divided by the number of impressions, page view or any query that you received. CTR determines how often your ads get clicked.

CTR = (number of clicks/no of impressions, views or queries)*100

Example:
Total number of ads clicks = 5
Number of page view = 500
Therefore CTR = (5/500)*100 = 1%

Revenues-Per-Thousand (RPM)

Earlier it was known as effective CPM (eCPM). RPM doesn't tell you the actual amount paid to publisher but represent you the estimate earning of a publisher for every 1000 impressions received.

RPM = (Estimated earning/page impressions)*1000

You can browse complete list on official Google Adsense page


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