What is CPC, CTR, CPM, CPA, RPM? Google Adsense Terms

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(What is CPC, CTR, CPM, CPA and RPM? Complete knowledge of Adsense terms.)

If you use Google Adsense or any Ad Network, then you must have heard about the words CPC, CTR, RPM, etc. Google Adsense is the world's largest advertising platform. It is used by many advertisers and publishers around the world. Today we will tell you about all the terms of Google Adsense that you have difficulty in understanding. You will be able to see the words mentioned in this article on many other platforms with Adsense.

Google Adsense common terms

CPC (Cost Per Click):

The full form of CPC is-  Cost Per Click. It is often used for banner ads. Under CPC Ads, advertisers first register with their ads on the platform. Publishers place these ads on their blogs. Now whenever a visitor clicks on these ads, the publisher gets paid per click.

 

CPC = Total Amount Spent on Ads / No. of clicks measured

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The CPC depends entirely on the keywords. If many people are working on a keyword, then there will be more competition in that keyword and eventually CPC will also increase significantly. In the same way, CPC is also often low for low competition keywords. Although this theory will make you understand the meaning of CPC, in real-life it is not necessary that this theory always be true.

I mean to say that bloggers and digital marketers are often looking for keywords in which competition is low and whose CPC is high. If you have also started a new blog, then it is very important to come to do keyword research. In this way, your keywords will be quickly ranked on Google and your earning will start.

 

CPA (Cost Per Action or Acquisition):

The full form of CPA is-  Cost Per Action or Cost Per Acquisition. It is a targeted advertisement tool which is used for affiliate marketing, product sales, etc. If the ads on your blogs are working on CPA, then you will earn only when visitors complete the action by clicking on those ads.

Now this action can be anything like - buy product, signup newsletter, registration, filling inquiry form, etc. To earn good through CPA it is necessary to have targeted traffic to your website. I mean to say that if you have created a blog on fashion, and people who are interested in technology are coming to your blog, then you will not earn well. You have to bring people interested in fashion to your blog. In this way, they will click on ads, complete the action and ultimately your earning will also be good.

 

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CTR (Click Through Rate):

CTR means Click Through Rate. Apart from Google Adsense, you must have seen this term in many places like Google Analytics, YouTube Analytics, etc. Although the meaning of CTR is common everywhere, here you will understand its meaning in the words related to Adsense. Let us first know how CTR is calculated:

 

CTR = (Total No. of Clicks / Total No. of Impression) x 100

 

The CTR is calculated with the help of total clicks and total impressions. The value of CTR is important for both Advertiser and Publisher. With its help, advertisers get to know how many people are showing interest in their ads, how well their ads are performing, etc. On the other hand, if we talk about Publisher, then by CTR we find out whether we have corrected Ads Placement or not. If you have very good traffic on your blog, but very few people click on ads, then you can improve ad placement by looking at the value of CTR in Adsense.

 

In Google Adsense we see two types of CTR value. First Page CTR and Second Impression CTR.

 

Page CTR and Impression CTR:

Page CTR: The click-through rate of the entire page is called Page CTR. Its value is calculated after taking into account all the ads on the page.

 

Impression CTR: The click-through rate of each of the ads is called impression CTR.

If you have placed 3 Ads on a page of the website and a visitor clicks on one of them, it will affect both the page CTR and the impression CTR of that particular ad. Because of this you often see the value of Page CTR more often.

Now suppose there are 3 Ads on any of your pages which are loaded all the time. You get all these data in one day:

 

1000 Page Views

3000 Ad Impressions

10 Clicks

Now using the CTR formula mentioned above:

 

Page CTR = (10/1000) x 100 = 1%

Impression CTR = (10/3000) x 100 = 0.33%

 

While calculating these two values, keep in mind that most of the ads on most pages are not displayed simultaneously. Therefore, the value of Page CTR and Impression CTR can also be upside-down.

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RPM (Revenue Per Mile):

 

The full form of RPM is Revenue Per Mile or Revenue Per Thousand Impressions. This is the reporting term of an Adsense. RPM tells the publishers how much money they will get for per 1000 page views or impressions. In Adsene, you must have seen two types of RPMs - first Page RPM and second Impression RPM.

 

Page RPM:

Page RPM is calculated by dividing your earning by total page views, then multiply by 1000.

Page RPM = (earnings / Total page views) x 1000

For example, suppose you earn about $ 0.15 from 25 page views, then your blog's page RPM will be ($ 0.15 / 25) x 1000 = $ 6.00.

 

Impression RPM:

Ad Impressions are taken into consideration when calculating Impression RPM, just like in Impression CTR. Impression RPM indicates the average earning per 1000 Ads Impressions.

 

Impression RPM = (Earnings / Total impressions) x 1000

 

CPM (Cost Per Mile):

Often people get confused between RPM and CPM and make wrong reports. Although both of these mean one, RPM is used for Publishers and CPM for Advertisers.

The full form of CPM is Cost Per Mile or Cost Per Thousand Impressions. This is a reporting term of Google Ads (formerly Google AdWords). CPM tells advertisers how much they have to pay per 1000 Ads Impressions.

Talking about RPM, this is the reporting term of Google Adsense. This tells the publishers how much money they will get per 1000 impressions.

 

I hope you liked the information mentioned in this article. There are many other terms like CPC, CTR, CPA, RPM, etc. which are used on Advertisement platforms. In this article, I have tried to remove your problem related to Google Adsense. If you have any question related to Google Adsense, then definitely ask in the comment below. We will try our best to answer them, and if you like the article, do not forget to share it with friends.