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Monday, January 23, 2012

What is AdSense CTR, RPM and CPC

After adding AdSense ads on your site you want to find how successful is your AdSense combination placement with a help of performance AdSense reports. To analyze AdSense reports first you should learn what abbreviations like CTR means.

Here we will discuss most important AdSense report indicators like:

  • AdSense CTR (Click Through Rate)

  • AdSense RPM (Revenue Per thousand iMpressions)

  • AdSense CPC (Cost Per Click)

What is AdSense CTR (Click Through Rate)

AdSense CTR (Click Through Rate) is the number of the ad clicks divided by the number of page views.

CTR = (Number of ad clicks * 100) / Number of page views

If my blog have 10,000 pageviews per month and 40 AdSense ad clicks then my CTR is 0,04%.

CTR = (40 * 100) / 10000 = 0,04%

Higher CTR (Click through rate) more AdSense ad clicked means more earnings. So every AdSense publisher want higher CTR.

What is AdSense CTR - Click Through Rate

How to calculate CTR for whole page

When you calculate CTR (Click Through Rate) for whole page or site you should sum up CTR for each individual ad. For example, if my site have two ads, one ad have CTR 0,15% and another ad have 0,25% then my site have total CTR 0,40%.

When you calculate CTR for whole page you could get all ads on your site not only AdSense ads.

What is a good or bad CTR

It is not easy to tell what is good or bad CTR. Click through rate (CTR) depends on specific niche, type of site, design of site and many other factors.

Important is to find your current CTR and keep an eye on CTR during time when you make various action to increase your CTR. Ad placement have great influence on CTR, so try to optimize your ad placement. After you make changes on ad placement keep track how it affect on your CTR. Something similar to my article: Increase blog adsense revenue real case scenario.

To help with AdSense CTR benchmark I will give information what I consider as good or bad CTR:

  • under 0,10% - it is bad CTR, my blog have this CTR before any AdSense ad placement optimization

  • 0,10% - 0,20% - it is acceptable CTR but it can be better

  • 0,20% - 0,30% - it is good CTR

  • above 0,30% - excellent CTR

  • above 2% - by some sources on internet it is suspicious high CTR

Please, leave a comment about CTR on your site and your opinion what is good or bad CTR.

What is AdSense RPM (Revenue Per thousand iMpressions)

Page revenue per thousand impressions (RPM) is calculated by dividing your estimated earnings by the number of page views you received, then multiplying by 1000.

Page RPM = (Estimated earnings / Number of page views) * 1000

This is good indicator to estimate your earning in future, for example if your RPM is €1,12 then you can predict if you will have 15,000 pageviews your earnings will probably be around €16,8 (15 * €1,12).

What is AdSense CPC (Cost Per Click)

The cost-per-click (CPC) is the amount publisher earn each time a user clicks on his ad. In publisher reports, CPC is calculated by dividing the estimated earnings by the number of clicks received.

For example if your CPC is €0.26 then you need around 285 click to earn €100.


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Jacob koshy said...

great post about adsense, it really helped me understand in depth on these terms!
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Why Not Kenya said...

This infromation will help me improve my adsense earning

Paresh Gujarati said...

I have now my blog with new domain name as
I added this URL in my adsense ad list to tract the adsense activity.
Now What I saw today is 0 earning despite of 5 clicks on blog.....and it does not show any clicks on my old blog ULR entry...Why it is so?
Actually It is now less than 22 hours since my new blog got its new name...i.e. domain name of mechanicalduniya....

Can you tell me why there is 0 earning? Hope you will guide me.

Mark said...

To Paresh Gujarati:
Check this link: