Difference between eCPM, CPC and CTR?

Introduction

If you run ads (ex Google Adsense) in your website or blog, you might have noticed eCPM, CPC and CTR.

Here is the explaintion of the terms.

• eCPM - Effective cost-per-thousand impressions. Earnings per 1000 impressions. Cost to show your ad a thousand times in your website.

The process can be presented by the mathematical formula:

eCPM = (AR / AI) * 1000
Where: AR stands for Adsense Revenue and AI stands for Adsense Impression.

In other words, the Adsense eCPM is totally dependent to the Adsense CTR and CPC.

• CPC - Cost Per Click (How much will you earn per click). Basically CPC cost is determined by the advertiser. Advertisers will pay more per click for sites with niche content.

• CTR - Click through rate (measure of how often users click on your ads). If your ad receives one click for 100 views, you are said to have a CTR of 1% or .01.

Lots of factors contribute to your earnings in Adsense and other affiliate programs. Traffic is one of the important factor, more people visit your site, more ad clicks and revenue. Moreover quality of your content is important.

How did the CTR and CPC affects the eCPM of the Adsense ads?

By just considering the formula given above, we could already say that the higher in Revenue and lower impression will result to high eCPM. And on the other hand, the lower the Revenue and higher impression will result to low eCPM.

But, let’s say that the impression is constant in two different periods but the Revenue varies from one period to the next period.

For example, the generated impression is 1000 in day-1 and in day-2; and the revenue is $10 in day-1 and $5 in day-2.

By substituting the data to the formula given above, the result will be $10 eCPM in day-1 and $5 eCPM in day-2.

The result simply tells us that if you could not increase the number of impression of the Adsense ads, you need to increase the eCPM of Adsense by simply working for the increase of the Adsense Revenue. However, in a constant impression, Adsense Revenue greatly depends on the CTR and CPC of Adsense.

How to Increase eCPM of Adsense?

In other words for you to increase the eCPM what you need to do is:

1. Increase the CPC of the Adsense ads. Just imagine if a click in your Adsense is worth $10, which means that in just 1 click in your Adsense you already earn $10. Now, what if there are 3 clicks generated in your Adsense. Well.. That’s really very interesting especially if your Adsense CPC is as high as $10 per click because in just 3 clicks you already have earned $30.
2. Increase the Adsense CTR. Again, imagine what would be your income if your Adsense have CPC of $10 per click but no one click your Adsense ads. So, you earn nothing even if your Adsense has better CPC.That simply tells you that the Adsense CTR really affects your Adsense income. The more your Adsense receive clicks, the more you earn from Adsense.
3. Avoid being Smart Priced by Google Adsense. Smart Pricing is another thing that makes your Adsense earning to drop. Google Adsense implement Smart Pricing to protect its advertisers and help them increase the ROI.

According to Google Adsense “Google AdSense provides a free, flexible way to earn money from your websites, mobile sites, and site search results with relevant and engaging ads.

AdSense has helped over two million publishers grow their businesses in the last 10 years. Have AdSense fund your content so you can focus on creating even more.”.

difference between page views clicks page ctr cpc and page rpm in google adsense

Most of us who use Google Adsense as an income must be familiar to the core stuffs which play vital role in more benefits. As a beginner to it I’d like to state what I have learnt which may be negligible in contrary of understanding whole Google Adsense System. I am presenting one liner definition and difference between Page views, Clicks, Page CTR, CPC and Page RPM in Google Adsense.

Page Views- This is the number of page views of your website. Multiple pages browsed increases Page Views in google adsense.

Clicks- It is the number of Advertisements clicked during page views as defined above.

Page Click Through Rate (Page CTR)- It is ratio of number of ad Clicks versus number of Page views. For example, Page Views in a day=120 and Clicks=50 then PAge CTR of that day will be ‘s 50/120= 41.66%

Cost Per Click(CPC). It is average of incone (revenue) per click.

Page RPM. This is your earnings per 1,000 page views. This is calculated by taking your estimated earnings (see below) and dividing by your number of page views and multiplying by 1,000.

From above definition we can conclude higher the CTR and CPC is of a website, higher your will be the revenue. If you want to get help from SEO of the site, do install SEO Traffic Secrets PRO – Adwords PPC & Search Engine Optimization – Innotech Media