What Is Google AdSense Page RPM And CPM

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Publishers have several tools at their disposal to achieve and keep a path to revenue growth. one of the key metrics they can monitor and influence is page RPM. It’s an important metric to detect issues with ad effectiveness as well. Although RPM is quite a volatile metric, there are several strategies you can implement to influence this metric and increase your overall advertising revenue.

What is Page RPM?

Page RPM is an abbreviation of Revenue per Mille, or Revenue per Thousand, and is a digital advertisement metric used by publishers that estimates the revenue a site can generate for every thousand page views.

eCPM, on the other hand, is an acronym for “effective cost per mille.” it is used on many platforms that monetize through display ads which can include desktop, mobile, in-app and video. it’s important to understand that page RPM and eCPM are essentially the same. As a result, Google uses the terms interchangeably.

Take Page RPM or CPM or CTR, it’s all been a nightmare for publishers. whether they go up suddenly, remain stagnant for a while, or plummet down to the ground, it influences your revenue. At the end of the day, you’ll be chasing down the reasons to find out the cause of the anomaly. Especially, mid-market publishers find it almost impossible to consistently increase page RPM.Page RPM is an estimation of total revenue generated by a site for every 1000 views on a page. it is an important metric that can provide useful insights and help optimize factors such as page layouts and number of units per page.

How to Calculate Page RPM

Page RPM is calculated by dividing your estimated earnings or ad revenue by your total number of page views and multiplying the result by 1000:

Page RPM = (estimated earnings / total number of page views) * 1000

For instance, if you have 1500 page views per month and an estimated ad revenue of $15, your page RPM would be ($15/1500)*1000 = $10.

However, it’s not as easy because it sounds to get an RPM of $20 and to consistently increase it over time. On the contrary, you can’t successfully run your website with the same revenue. Increasing costs means you have to increase revenue as well. Here’s the good news. you can increase your Page RPM significantly without choking your readers with ads.

What Influences Page RPM?

There are two metrics which directly influence your RPM:

1. Click-through rate (CTR)

This measures the number of clicks on an ad per thousand ad impressions. The more an advertiser’s ads are clicked, the more publishers get paid. In short, an increasing CTR translates to increased page revenue. a higher CTR also means the publisher is offering a high-quality placement for those kinds of ads, which would allow the publisher to get a higher price per click on the ad placement bid.

2. Cost per click (CPC)

This measures how much money an advertiser is willing to pay for a click on an ad placed on a publisher’s site. CPC varies based on the content of the ad, context, and the niche.

Publishers should make sure that they are keeping both CTR and CPC as high as possible since increasing these two metrics will drive the growth of their page RPM. There are several strategies publishers can use to increase the effectiveness of their advertising real estate. Here are some of the best ways publishers can increase page RPM.

What are the Factors that affecting Page RPM?

As a publisher, you should ensure that you’re keeping both CTR and CPC as high as possible. how to do so?
– Probably one of the boring yet underestimated tips you’ve heard – Publish quality content. Quality content is the one that attracts and retains a targeted niche.
– Find the right ad placements and optimize them. Why? Ensuring you are placing the ads in the right placement increases your viewability, CTR, and CPC.

– make sure the ads are highly relevant and resonate well with the readers. in case you’re using an ad network, check their targeting criteria, and optimize it. If you are serving ads programmatically, the targeting will be taken care of automatically.

What Is Page CPM?

AdSense CPM very much depends on the website category, page speed, SEO, demographics, visitor quality, ad sizes and positions in both mobile and desktop environment. The table below shows a rough estimate of CPM based on countries, starting from the highest to the lowest. to make it better for comparison we’ve also included CTR% and Viewability % (suggested to have at least 50%), so you can see how these metrics can influence CPM for better or worse – the higher percentage the better CPM.
Keep in mind that every website will have different CPM’s and the table can be used for approximate estimations of each country and applied accordingly. for example, to increase viewability % (therefore CPM) we suggest to “lazy load” all banners therefore earning more revenue and increasing CTR %. this will also make your website more valuable to advertisers and ad exchanges. All of these measurements work hand in hand and all should be considered when optimizing website/blog advertisements.

We suggest you have a look at our suggestions on how to optimize both mobile and desktop versions of your website/blog to earn as much revenue as possible.

What Is Page RPM vs CPM?

As is stated above, RPM is the estimated revenue you will earn by the number of views on your website’s page. CPM (cost per thousand impressions), on the other hand, is the cost the advertiser pays for 1000 impressions.

Basically, CPM is an advertiser/marketer-centric metric which is often misconstrued for web publishers. RPM is meant to give publishers a sense of direction on how much they can earn with the received value for ad impressions.

The following examples will give you a better understanding of the difference between these two metrics.

Let’s say your estimated revenue is $1,000 for 10,00,000 page views. Hence, your should RPM should look like:

Rpm

Now, let’s say the advertiser’s campaign budget is $500 and you received 5,00,000 ad impressions. Hence, their CPM should look like:

Cpm

→ 500 / 5,00,000 * 1000 = $1 CPM

The confusion regarding RPM and CPM has been cleared.

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