There are many advertising programs present on the web, some of them are Google Adsense, Bing Adsense, Chitika, Amazon Associates, Yllix Media, Infolinks, Adsterra, PopAds, RevContent, PropellerAds Media etc. These all help to earn money from advertisement. Among all these, Google Adsense is one of the popular ad programs which helps the website to make money.
There are various bid types available like CPC(cost-per-click), CPM (cost-per-click).CPM (Cost-Per-thousand impressions), CPE (Cost-Per-Engagement) etc, among those CPC is the best and largely used bidding type. Google Adsense uses CPC(Cost-Per-Click)(also called PPC (Pay-Per-Click) or Impression(CPM) bid type as internet advertising program that allows publisher (anyone who wants to put ads on their sites) to insert a small amount of JS code into their sites and have ads appear that are targeted and relevant to the content of the site. These CPC ads can be placed on some or all of the web pages and largely helpful for both web publishers as well as advertisers. Both Bing and Google ads uses CPC ads.
Google Ad Type
Google supports a variety of ad type that may appear on your pages. You may see following Ad Type supports from google.
- Rich media
- Animated image
- Link units
Adsense Key Metrics
When your website is approved by Google Adsense then logging on Google Adsense account you will find many Google Adsense key metrics and terms which may be difficult to understand. I am here my friend to discuss those Google Adsense key metrics. Let's start.
Google AdSense key metrics that Google uses are click, impression, Conversion Rate, page view, clickthrough rate, Clickthrough rate (CTR), Cost-per-click (CPC), Cost-per-thousand (CPM), and Revenue per thousand impressions (RPM).
It is the total number of times ads were clicked. Higher the click, higher the earning.
A page view is counted every time a user views a page displaying ads. Only one page views are counted at a time regardless of the number of ads displayed on that particular page. For example, if a page displays 4 ad units and it is visited thrice then three page views are counted. So it is most important for you to check page view weekly to know how your Ads are performing.
Ad Impression / Ad View / Impression:
If a user lands a page having 4 ads and if it is viewed 5 times, then you have 5-page impression and 16 (5 *4) ad impression. On the other hand, if a page contains no ads then that is one-page view but no ad impression. Impressions are often calculated in sets of 1,000.
According to Google, ad view is counted only if 50% of particular ads is shown for at least 1 second.
A query is a request made each time to Google’s system to display an ad unit. Google Count a query each time a request is made to it to display an ad unit, whether or not targeted ads are displayed.
Click-through rate (CTR):
CTR percentage says about how much ads are clicked by viewers.
It is the number of ad clicks divided by the number of impressions, page views or queries you received.It determines how often the visitors click your ads.
CTR = Clicks / # of impressions, views, or queries
Query CTR = Clicks / Queries
Page CTR% = ( Clicks / # of page views ) * 100%
Ad CTR% = ( Clicks / # of page impressions ) * 100%
It is the most important metrics in Adsense and considered the major reason for disabling of your account.
How much CTR is consider best ?
It must be less then 4 - 5% and if it is 1 - 2% then it is very good but should not be Greater then 9-10%. Note here I am considering only for the blog site, but not for youtube.
It can be lower than 0.05% and greater than 20%
Having too many impressions and low clicks affect the overall CTR.
The percentage of clicks that brings the visitor to make a purchase via ads. For example, if one in every hundred visitors to your site makes a purchase, then your conversion rate is 1%.
CPC bidding is online advertising revenue model where you(publisher) gets paid for each click on their(advertiser) ads.
Cost-per-click ($) = Advertising cost ($) / Ads clicked (#)
CPC rate will be higher if someone buys the iPhone than someone who buys pen drive via ads because the cost of the pen drive is high
because the advertising cost of iPhone will obviously be higher than pen drive as we can see CPC is directly proportional to Advertising cost.
Higher the CPC means more ads earning per ad click.
CPM (Cost For Thousand Impression):
CPM stands for "cost per 1000 impressions."Here, "M" in CPM represents the Roman numeral for 1,000.CPM ads compete against cost per click (CPC) ads in google ad auction system, and it will display whichever ad is expected to earn more revenue for you.
If a website publisher charges $3.00 CPM, that means an advertiser must pay $3.00 for every 1,000 impressions of its ad.
Page Revenue per thousand impressions (RPM)
RPM is a reporting feature and this does not represent the actual amount paid to a publisher.RPM doesn't represent how much you(publisher) have earned. RPM is calculated when the Estimated Earnings is divided by either page impressions, page views, or queries. Therefore, RPM can be further classified into three types: Ad RPM, Page RPM, and Query RPM. RPM are actually calculated in sets of 1,000.
Ad RPM (also called as eCPM) = (Estimated earnings / Ad impressions) * 1000
Page RPM = (Estimated earnings / Number of page views) * 1000
Query RPM = (Estimated earnings / Number of queries) * 1000
Example 1: If a publisher earned $25 from 2,500 page views, then
RPM = ( Estimated Earnings / Page views) * 1000 RPM = ( 25 / 2500 ) * 1000 RPM = $10
Example 2: If a publisher earned an estimated $80 from 40000 ad impression, then
Ad RPM = (Estimated earnings / Ad impressions) * 1000 RPM = (80/40000)*1000 RPM = $2.00
Every blogger has to reduce your overall site bounce rate to increase your website search performance. Website will receive higher bounce rate if the visitor visits your site on any page( probably called as an entrance page) and leaves without visiting other pages (or link) on the same domain.
Bounce rate equation:
Bounce Rate (Rb) = (Total number of visitor who are viewing just one page only) / (Total visitor
coming to the page).
For example, say 100 visitor comes to the landing page( home page ) of your sites within say a month, and 50 of those visitors exit or leave your site after viewing just a homepage, then bounce rate of the homepage would be (50/100) * 100% = 50 % . Each page on your site may have a different bounce rate.