Trying to understand Google’s rates for their Adsense ads can be just as confusing to the layman as trying to figure out a calculus problem. For this reason, many people do not take full advantage of all that Google has to offer. Many people simply sign-up for Adsense, go through the process of figuring out how to add it to their site, and cross their fingers. However, there is a little more to the process of Google Adsense rates than pure luck.
CTR, CPC, and RPM: Greek Terms to Most
When trying to understand the rates for Google’s ads, you need to understand these three terms: CTR, CPC, and RPM. But what do these three sets of initials mean?
CTR is a set of initials that Google uses for the Click-Through-Rate. But how is this figured? Simply put, the CTR is the number of clicks that each ad gets, divided by the number of impressions, then multiplied by 100.
However, there are two different CTRs to contemplate. There is a CTR that is composed of the number of visitors to your site, and a CTR that is composed of the number of pageviews on your site. Viewing both of these different types of CTRs can lead you to completely different numbers.
If each of your visitors clicks on several different pages of your website, the numbers for your pageview can be dramatically distorted.
Therefore, a better way of measuring your ad rate would be to predict the value of your keyword. To learn how to predict the value of your keyword, follow along to understand CPC.
CPC stands for cost-per-click. The first step to finding the CPC is to use the Google Adwords Keyword Tool. By plugging your word into this tool, you can find how much advertisers are willing to pay to get an ad listed on google.com for that keyword.
Now, that is not your rate for that ad on your website. Those advertisers will only pay about 30 percent for that ad to be posted on your website. So, take thirty percent of that number and that will be the CPC for that ad on your website.
Another way of measuring your Google Adsense rate is RPM. RPM stands for Revenue per Mille, or page revenue per 1000 impressions. This is the amount that Google calculates you will make for every 1000 views to your site. However, this only works well for larger sites with more views, since the number of visitors can vary based on a variety of things.
The Best Way
Therefore, the best way to measure your Google Adsense rate seems to be the CPC, or the cost-per-click. By using the Google Adwords Keyword Tool, you can plug your keyword in to find the amount that advertisers will pay for their ad to be placed on google.com, then find 30 percent of that number to find how much the advertiser will pay to post ads on your site. From that point, you simply need to work on improving your website, using your Google Adsense ads in the best way possible, and promoting your website to maximize your profits with Google Adsense.