Google Adsense is best popular CPC ,RPM ,CTR and CPM-based revenue model for many Bloggers and Internet Marketers To Making Money online to serve automatic text, image, video, or interactive media advertisements, that are targeted to site content and audience You need traffic and that too targeted high-quality traffic.
How Adsense Revenue Actually Works?
Adsense has both CPC and CPM-based revenue model.
- CPC – Cost Per Click – Varies anywhere between $0.02 to $1 (Max. it can go up to $100 as well but in very rare cases.)
- CPM – Cost per 1000 Impressions.
- RPM – Revenue per 1000 Impressions.
- CTR – Click Through Rate – Clicks per 100 impressions. Varies anywhere between 1% to 10% based on your niche and ad placement.
- The other terms like Pageviews, Impressions and Earnings; which I guess are pretty much straight forward.
CTR = (Number of ad clicks * 100) / Number of page views
If my blog has 10,000 pageviews per month and 800 AdSense ad clicks, then my CTR is 0.8%.
CTR = (800 * 100) / 10000 = 0.8%
Most of the ads on Google Adsense are Cost Per Click based get paid whenever a visitor clicks on your ads.
How much money can you actually make from Adsense?
It depends on a lot of factors and out of all these the primary factors are CPC and CTR. CPC varies from niche to niche and also depends on the geographic location of your audience. If you are getting traffic from Tier-1 countries like US, UK, Canada, Australia, etc, then your CPC is likely to be high. But if in case you are receiving traffic from Tier 2 and Tier 3 countries CPC would be low.
You need a good CTR means you want more people to click on your ads. This depends on a lot of factors like Ad Placement, Source of Traffic, Web Page Loading time and a lot many other factors.
It all depends on these two factors. Combing these two a simple term is used to understand how well our ads are performing and its called RPM.
Page RPM = (Estimated earnings / Number of page views) * 1000
Estimated Earnings = CPC * Total Number of Clicks
= CPC * CTR*100
So, if your RPM is $5, then you would make $50 for every 10,000 page views. So, now I hope you understand how to calculate the earnings.
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