CTR, RPM and CPC: How you can earn with Ad Sense
AdSense may be easy to understand and use, it has a technical side. To fully learn more about it, you should start the commonly used technical terms. CTR, RPM and CPC are the top three jargons you must know about AdSense that will help you better comprehend how you can earn with AdSense.
What is CTR?
Click-through rate or CTR is the number of clicks an ad gets divided by the number of times the page is viewed in the same time period. For example, if your site is visited 300 times a day and your ad is clicked 10 times on the same day, your page CTR will be .11%
(33/300 = 0.11)
Why is CTR important?
Your CTR is an indicator of how good your site is to place an ad for an advertiser. Higher CTRs means better revenue for the publisher – that is you!
Getting better CTRs
The thing is there is no definite average number of CTR. It all varies from one niche to another. Aside from your number of visitors, ad placements influence your CTRs as well.
What is CPC?
Cost per click or CPC is the final earning or value per click you will charge on the advertiser every time an ad is clicked from your page. CPCs vary since advertisers can set an amount for a maximum bidding. The average amount of CPC is around 2.00USD across all industries. It is previously known as PPC or pay per click.
Why is CPC important?
CPC determines how much you will earn as a publisher and how much an advertiser might spend for a campaign.
Getting better CPCs
The best way to improve your CPCs is to increase the number of clicks your ads get. To do that, finding quality traffic is essential. Write quality content that is related to your niche or topic. Making sure that your blog or website is always updated with fresh content to attracts more visitors.
What is RPM?
Page revenue per thousand impressions can be computed by dividing your estimated earnings by the number of page views you received and then multiplying it by a thousand. For example, if your estimated earnings from 38 page views cost 0.24USD your RPM will be 6.32USD.
(0.24/38 x 1000 = 6.316)
Why is RPM important?
Though RPM doesn’t measure your actual earnings, it helps you as the publisher understand how much you could possibly earn from AdSense if you have a thousand views or visits. This helps you keep track of your earning goals.
BONUS: What are impressions?
For AdSense, impressions are your ad units. These include content ads (like banner or block ads) and search ads (ads that appear in search results).
These are some of the AdSense jargons you need to understand to help you understand how you can use your blog or website to earn money.