HOW TO UNDERSTAND GOOGLE ADSENSE PERFORMANCE METRICS- PART 2: If you’ve read and followed my blog, you’ll know that I love blogging about cleaning, decluttering, and organizing. That is my niche. However, I also like to help out readers who are fellow bloggers or are considering starting a blog. If you’ve read my blog post about making money blogging, you’ll know that the most common place for bloggers to start is with Google Adsense.
Google Adsense is available to almost anyone who owns a website who would like to allow ad display. Google Adsense provides a way for publishers/website owners to earn money by giving Adsense permission to post ads on your site that relates to your content. It is free to you, the blogger.
Read my related blog post, and I’ll walk you through the steps to set up Google Adsense. But, to know how well you are doing, you must know how to understand Google Adsense performance metrics. (If you need to sign up for a new blog, try bluehost for the cheapest options.)
I’m going to help to define the terms and abbreviations you see in Google Adsense, as well as most other ad publishers. This is a bit of a process, so I’ll be posting a series of blog posts to help explain these things. Let’s get started.
In my previous blog post in this series, we’ve defined a few terms already. We’ve covered Pageviews, Clicks, and Impressions. I have laid out exactly what those terms mean in part one of this series. Go back and read that if you need more clarity.
Today, we’ll define a few more terms and explain what those mean. Let’s begin with Page RPM.
HOW TO UNDERSTAND GOOGLE ADSENSE PERFORMANCE METRICS- PART 2
1. Page RPM means page revenue per thousand impressions. RPM is calculated by dividing your estimated earnings (revenue) by the number of pageviews you receive, then multiplying by 1,000. Confusing, right? Let me give an example of how this looks.
Let’s say you earned an estimated $0.15 from 25 pageviews, then your RPM would equal $6.00. Here is how the math works: 1000 divided by 25 is 40. At $0.15 per 25, you earned $6.00 because 40 times .15 equals 6.00.
Another way to look at it is this ( $0.15/25) x 1000 = $6.00.
Does that mean you earn $6.00 if you had 1,000 pageviews that day? Not exactly. Next, we’ll define Cost Per Click to see what you earn.
HOW TO UNDERSTAND GOOGLE ADSENSE PERFORMANCE METRICS- PART 2
2. Cost Per Click = This is the amount you earn each time a site visitor clicks on your ad. The Cost Per Click or CPC is determined by the advertiser. Some advertisers are willing to pay more per click than others, so this value varies greatly each day for most bloggers. (If you need to sign up for a new blog, try bluehost for the cheapest options.)
Let’s see how this might play out. Let’s say your CPC is $0.23. You had 988 pageviews and 18 clicks. To determine how much you earned, you’ll multiply 18 x .23 which equals $4.14. Google does the math for you and you’ll see it calculated and updated throughout the day if you view your Adsense performance metrics.
Finally, let’s look at Page CTR and aim to understand that better.
3. Page CTR = CTR or Click Through Rate is the relationship between impressions and clicks. CTR is calculated by the number of times an ad is clicked divided by the number of times the ad is viewed.
Let’s look at an example. Let’s assume you had 100 people view your page with an ad. If 5 of those 100 people clicked the ad, the CTR would be 5 percent.
Google Adsense does a pretty good job in finding relevant ads for your readers, so the click through rate should be pretty competitive and a nice source of revenue for you as a blogger.
Bonus Tip: The more blog posts you create, the more pages you have to display Google Adsense ads, so get to blogging! Don’t just blog to blog, but try to create great content that will be valuable to your readers.
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Bloggers, stay tuned, as I’ll do my best to send more helpful information like this your way!
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