What Is Google Adsense
Basically, it is a free platform built by Google, which gives the opportunity to implement a small piece of HTML (ad code) on your site and display various types of ads. The code monitors your content and picks targeted and relevant ads – this is called “contextual advertising”. How does it work? The advertisers collect a set of keywords they’re going to bid on. The bots match them with your semantic core and deliver the ad that includes the same or similar keywords.
Ways to Measure the Revenue
Let’s dive deeper into Google AdSense: how it works and what payout models it features. There are three ways of measuring the income: CPC, CTR and RPM. Each features a specific calculation model to evaluate profit by the corresponding formulas. The reporting system is onboard to let you know the bulk of each kind of income.CPC
This model calculates the number of clicks you get in total. The average CPC can reach the $0.25 mark if collected keywords lack advertiser competition. For example, if your goal is to earn $100 a day, with the average CPC $0.25, you should get 400 clicks a day (100/0.25) to succeed.Ctr
CTR is the percentage of clicks divided by the Page Views quantity, which is the number of people having clicked on the ad. For example, if 1,000 page views have entailed 50 clicks, your click-through rate is 5%. Also, this metric is helpful for seeing the quality of imagery, positioning and keywords. A decent CTR rate should reach 2%. The average CTR depends on the niche. The most profitable ones from this perspective are e-commerce, dating, techs, advocacy and travel/hospitality industries.RPM
Let’s see how much money Google AdSense brings in the context of RPM, meaning the page revenue per 1,000 impressions. The calculations are based on the following formula: Divide the estimated earnings by the number of page views you’ve got and then multiply the result by 1,000. For example, if you’ve earned $0.10 from 20 page views, your page RPM is ($0.10 / 20) x 1,000 = 500 cents ($5.00). Note that if each of the 1,000 visitors views two pages, it equals 2,000 pageviews if every page has an ad. Otherwise, AdSense will calculate 1,000 impressions.Ad Types
What about ad formats and the way they are utilized by Google AdSense? The network is remarkable for its flexibility and offers various types of ads so that you can choose the most relevant ones (the ad should be blended with the content and page layout).The following ad formats can be used on your website to generate income.- Text Ads
- Display Ads
- Rich media
- Animated image
- Link units
Best Strategies to Make Your Ads Work
So, how should you use Google AdSense to see such numbers in your account: