What is CPC, CTR, CPM, CPA, and RPM? Complete information about AdSense related words?

What is CPC, CTR, CPM, CPA, and RPM? Complete information about AdSense related words?

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

Google Adsense common terms

CPC (Cost Per Click):

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 Spend on Ads / No. of clicks measured

CPC depends entirely on keywords. If a lot of people are working on a keyword, then competition will be higher in that keyword and eventually the CPC will increase too. Similarly, the CPC of low competition keywords is also often low. Although this theory will make you understand the meaning of CPC, but in real-life this theory is not always true.

I mean bloggers and digital marketers are often looking for keywords that have low competition and high CPCs. If you have started a new blog, then you need to come up with keyword research. That way your keywords will quickly rank 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. This is a targeted advertising tool that is used for affiliate marketing, product sales, etc. If the ads on your blogs are working on CPA, then your earning will only happen when visitors click on those ads and complete the action.

Now this action can be anything like - buying a product, signup newsletter, registering, filling out inquiry form, etc. To get good earning through CPA, your website needs to have targeted traffic. 
I mean, if you have created a blog on Fashion, and there are people coming to your blog who are interested in technology, then you will not have good earning. You have to bring people who are interested in fashion on your blog. That way, they will click on Ads, complete the action and eventually your earning will be good as well.

CTR (Click Through Rate):

CTR means Click Through Rate. You may have seen this term in many places besides Google AdSense, Google Analytics, YouTube Analytics, etc. Although CTR has a general meaning everywhere, here you will understand its meaning in words related to AdSense. First let's know how CTR is calculated:

CTR = (Total Number of Clicks / Total Number of Impressions) x 100

CTR is calculated using total clicks and total impressions. The value of CTR is important to both the Advertiser and the Publisher. This helps advertisers know how many people are showing interest towards their ads, how well their ads are performing, etc. At the same time, if we talk about Publisher, with CTR, we find out whether we have done Ads Placement correctly. If your blog has very good traffic, but very few people click on ads, you can improve the ad placement by seeing 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: Page CTR is the click-through rate of the entire page. Its value is calculated by taking into account all the ads on the page.

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

If you place 3 ads on a page of a 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 higher.

Now suppose you have 3 ads on a page that loads all the time. In one day you get all these statistics:

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%

When calculating these two values, keep in mind that not all the ads on the page are displayed simultaneously. Therefore, the values ​​of Page CTR and Impression CTR can be up and down.

RPM (Revenue Per Mile):

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

Page RPM:

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

Page RPM = (Estimated earnings / total page views) x 1000

As an example, suppose you were earning about $ 0.15 from 25 page views, your blog's Page RPM ($ 0.15 / 25) would be x 1000 = $ 6.00.

Impression RPM:

Ad Impressions are taken into consideration when performing Impression RPM calculations, just like Impression CTR. Impression RPM shows the average earning per 1000 Ads Impressions.

Impression RPM = (Estimated earnings / total impressions) x 1000

CPM (Cost Per Mile):
Often people get confused between RPM and CPM and make false reports. Although these two 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 from Google Ads (formerly Google AdWords). CPM lets advertisers know how much money they have to pay for every 1000 Ads Impressions.

In terms of RPM, this is Google Adsense reporting term. This shows publishers how much money they will get per 1000 Impressions.

I hope you liked the information in this article. There are many other terms like CPC, CTR, CPA, RPM, etc. that are used on advertisement platforms. In this article I have tried to remove the confusion with Google Adsense. If you have any questions related to Google Adsense, then be sure to ask in the comments below. We will try our best to respond to them, and if you like the article, be sure to share it with your friends.