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Understanding Google AdSense Terms

Google AdSense is so far the biggest and best Advertising Program for Blogs. As the thought of monetizing content comes to the mind of any Blogger, the first thing that he does is joining Google AdSense. From quality Ads to contextual ads and localisation no Ad program has yet matched what AdSense offers. You can easily make 50$ daily from Google AdSense with your Blog.  For Beginners though understanding AdSense terms like CPC, CTR, RPM, etc. are pretty confusing.

Lets simplify a bit

Google Adsense uses term like CPC, PageRPM, and CTR, so what do they mean. Here is a screenshot of what an AdSense report looks like.

 google-Adsense-report

In this image you can see Page RPM ranges from 33$ to 0.28$. This is due to multiple factors like the topic on the page, the target region and more. You can also see how the higher CTR has helped to get the highest Page RPM.

 

CPC – Cost Per Click

Cost per click is the cost an Advertiser pays to the publisher for every Click on the AdSense Advertisement placed on the Blog/Website. Normal CPC rates are 0.1$ per click for low competition products. On the higher side some Advertisers in highly competitive business areas like Insurance pay around 2$ to 10$ per click. CPC rates differ according to geographies and niche keywords. AdSense CPC for USA is higher than that of Europe and is very low in regions of South Asia. Getting high CPC Ads from Google AdSense on your blog is a challenge.

Here are a few things to know about CPC:

  • CPC Ads result in more volatile revenue.
  • Advertisers will pay nothing for ads served that do not generate clicks
  • Expands the number of potential advertisers as lot of advertisers prefer the CPC model.

PageRPM – Page Revenue Per Impression

Page Revenue Per Impression is the cost an Google AdSense pays to the publisher for every 1,000 Ads impressions served on a page of his Blog or Website. This means that the publisher is compensated for every page-view where the AdSenseAd is shown. There is lot of confusion regarding this term as each page may have multiple Ads. Bloggers differ on this term as some refer to it as individual AdSense Ad impressions. But according to Google, Page RPM is an average of all the AdSense Ads present on all the pages on your Blog. Adsense PageRPM rates differ from around 1$ to 100$ per 1000 impression, depending upon the composition of audience and geographic distribution of views.

CTR – Click Through Rate

Click Through Rate or CTR as it s called is the number of ad clicks divided by the number of impressions i.e page views, or queries you received.

CTR = ( Clicks/ No. Of impressions, view or queries ) X 100%

For example, if you received 7 clicks out of 1000 page views, your page CTR would be 0.7%.

The Maths

With AdSense CTR and CPC are individual factors while RPM is a collective measurement. That means, if you are having higher CPC and CTR rates, you will get higher RPM Advertisements. In other case if you have good CPC but a low CTR, then the RPM of the Ads shown will be less. RPM is the ultimate factor to see whether your blog is doing good with Google Adsense. The higher the AdSense PageRPM the better.

If you are making 30$ from 3000 Page views daily, then your RPM is 10$ ( 30 x 1000/3000). The RPM differs for Blogs according to the niche and target region. If your Blogs visitor are mobile users Make your Blog/Website responsive to work with multiple devices like Smartphones and Tablets as these command higher PageRPM’s with Google AdSense.

An RPM of 3$ to 4$ is reasonable, but you should focus on increasing CPC, CTR to get Higher AdSense PageRPMs.

There are also other factors that affect your Adsense earnings that you should check out.

Over To You

With all the above factors in place the only remaining link to improve AdSense revenues is Traffic. Making 50$ daily or more from Googel AdSense is pretty easily possible if you correctly balance the related factor. Try to increase the content by posting more quality content and reducing bounce rate.

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