When you log in to your AdSense account, the first thing you do is to check how much you have earned and how many clicks you got. Then, you may take a step further to analyse your website or blog performance. Under performance report, you will encounter few terms such as CTR, CPC and RPM, but what do they really mean?
1. AdSense Click Through Rate (CTR)
CTR is calculated by dividing the number of ad clicks by the number of page views, then multiplying by 100%. CTR = Clicks / Page views x 100%. For example, if you got 20 clicks from 2000 page views, then your CTR = 20 / 2000 x 100% = 1%
2. AdSense Cost Per Click (CPC)
CPC is the amount of money you earn each time a user clicks on your ad. High or low CPC depends on the keywords you use. Some keywords have high CPC which are more than $100, whereas some keywords have low CPC, as low as $0.01
3. AdSense Revenue Per Thousand Impression (RPM)
RPM is calculated by dividing your estimated earnings by the number of page views, then multiplying by 1000. RPM = (Estimated earnings / Page views) x 1000. For example, if you earned an estimated $2.00 from 2000 page views, then your RPM = ($2.00 / 2000) x 1000 = $1.00
In conclusion, high CTR, CPC and RPM show that your website or blog is performing well and is making money online with Google AdSense.
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