If you have a website or blog then you can earn money online from Google Adsense on your website. But for that, you need to know some basic Google Adsense terms like CPM, CPC, CPA, and CPR. Along with these terms, if there are any related efficiency and cost, then it is even better. In this article, we are giving you an overview about these Adsense terms and if you want advertisers and want to add on your website linking to add Adsense Adsense, then you also need to know these terms
What is CPM, CPC, CPA, and CTR in Google Adsense??
- CPM (Cost per Thousand) – “M” in CPM represents the roman numeral for 1,000) – Adsense’s most basic tool is CPM, which is also called cost per thousand of impressions. This means that how much the advertiser has to pay per 1000 impression and how much will you earn from publishing it on your website. Advertisers bid on Google for CPM and show how much they want to pay for the set of an impression. CPM bidding is best suited for advertisers who focus more on brand awareness.
How to Calculate CPM
Firstly, advertisers require terms to be bidding for those who want to show. After that, the total number of impressions that your ad will get is divided by 1000. Like if your ad performs 10,000 impressions, then you have to divide by 1000. So 10000/1000 is 10
Whatever bidding cost the advertisers have taken, the answer is given to divide (10) from the above-given answer. Example – If the total cost of advertising is $ 200 then divide $ 200 by 10, you will get a CPM which is $ 20.
- CPC (Cost per Click) – This is the most common tool because it is very popular among advertisers. This is a talk about per click payment. There is no point in impression in this too. CPC means you will get a per click payment or how much the advertiser has to pay to the publisher when clicking on their ad banner. Cost per click depends on rate keywords and its success rate. For example – the keyword “Finance” will be more expensive than any “Poem” keywords.
CPC = Advertiser’s total cost / number of clicks
The CPC rate can also be $ 2 per click and 2 cents per click. The CPC rate completely depends on the product and your market. In addition to many factors, I also depend on the keyword competition as much as the keyword competition, the more demand it will be and the cost.
- CTR (Click through Rate) – Now you know about CPM and CPC and we are doing a CTR that depends on both CPM and CPC. CTR measures the effectiveness of any advertisement while CPM and CPC cost of advertising. This means that CTR sees how many impressions were on your website or how many users viewed the ad banner and how many people clicked it. So the people who saw the advertisement banner and clicked, they have a percentage rate. For example – If your ad banner 500 logo was viewed but only 5 people clicked on the ad then the CTR would be – 1% or .01
How to calculate CTR
CTR = (Number of Clicks / Number of Impressions) x 100
Example – (5/500) x 100 = 1%
- CPA (Cost per Action) – Cost per action is also called pay per action (PPA) and cost per conversion. This is an online advertising pricing model in which the advertiser pays for each specific action such as a form submit, newsletter sign up, filling up inquiry form, registration or any sale. This is a method that gives perfect information about the efficiency of an online ad. This is done whenever a user engages in a defined activity.
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