Google AdSense Revenue Parameters Bloggers Must Know
Do you want to know what’s worked for other publishers on AdSense? From choosing ad sizes to improving page speed to setting up AdSense experiments, it’s important to know how AdSense can help you grow your business.
There are four inputs to your Google AdSense revenue:
- Number of ad impressions
- CPM (cost-per-1000-impressions)
- Clicks (number of organic user clicks on ads)
- CPC (cost-per-click)
Advertisers set the CPM or CPC price they want to bid for your ad space. As a publisher, there are lots of changes you can make that will help increase the amount advertisers spend on your site.
CPM and CPC
CPM and CPC: Winning valuable ads walks through the Ad sizes and formats, blocking options, and other ways to make your site more attractive to advertisers.
CPM stands for cost per 1000 impressions. From the advertiser’s perspective, CPM refers to the price they’re willing to pay to serve one thousand impressions of their ad. So in the AdSense auction if an advertiser bids a CPM of three dollars, this means he or she is willing to pay three dollars for every thousand times the ad appears to a user.
You may have noticed that there are no CPM values in your AdSense reporting. In AdSense performance reports, Google uses the acronym RPM, which stands for revenue per 1000 impressions. Since ads are not displayed in even bundles of one thousand impressions all impressions served on your site, regardless of the bid type, are combined and averaged in your reporting to show your effective revenue per 1000 impressions or RPM.
CPM is an industry-wide term that refers to impression-based bids from advertisers.
The next acronym to know is CPC.
CPC stands for cost-per-click. The cost-per-click is the price an advertiser pays each time a user clicks on an ad. In your reporting, CPC metrics shows the revenue you receive each time a user clicks on an ad on your site.
Two new bid types that will become increasingly popular
The first is CPE or cost per engagement. With engagement ads, the advertiser pays only when a user interacts with the ad in a particular way beyond just clicking on it. These ads are largely video and rich media ads.
The other new bidding metric is active view CPM. With active view CPM bidding, advertisers bid on one thousand viewable impressions and only pay for impressions that are measured as viewable. That is when at least 50 percent of the ad is displayed on the screen for at least one second.
Clicks and CTR
How clicks contribute to your overall revenue?
As a blogger, you need to choose ad locations and styles that are easy for users to interact with but do not interfere with your content. The most common measurement for click activity is click through rate or CTR.
CTR is the number of ad clicks divided by the number of impressions, page views, or queries you received. CTR equals clicks, divided by the number of impressions, views, or queries, multiplied by 100 percent.
For example if you received seven clicks and one thousand page views, your CTR would be .7 percent. As we mentioned, CTR is just one of the three key components of your revenue in addition to CPC and CPM.
These two factors are about designing and placing your ads. It explores ad locations and styles that you can implement to showcase your content and keep your users engaged.
With a growing number of ad types available in the auction, it can be overwhelming to decide what’s best for your site. So let’s begin by walking through the different alternatives.
When you create a new ad unit in your AdSense account, you’ll see three ad type options:
- Display Only
- Text Only
Text ads include a title that’s a clickable link to a web page, one or two lines of text, and a website address. You can customize the look and feel of these ads in your AdSense account.
The Display category includes all image, flash, video, and expandable ads. Image and video ad technologies are constantly evolving, so there may be other rich media formats added in the future.
Which should you choose -Text or Display or both?
Google recommends opting into both text and display ads to capture as much revenue as possible. Here’s why:
In the ad auction, there are plenty of display ads and text ads. If you choose to serve only one or the other, you’re leaving an entire category of ads out of the auction. The more bids competing for your inventory, the greater the highest bid is likely to be. By enabling both Display and Text ads, you’ll help increase pressure within the auction. This allows you to always serve the most valuable ad available for your site, regardless of format.
So when it comes to which types of ads are best for your site, opting into text and display ads will generate the most revenue.
Google has found that users view and click a variety of ads – regardless of whether the site they are on is largely text, large image, or a combination.
With so many ad size choices, it can be tough to choose the best ones for your site. Let’s start by describing the ad sizes that are most popular with advertisers right now and that tend to be the highest paying.
The standard sizes that we most often recommend are:
The 336 by 280
This unit is often called the large rectangle and tends to perform well when placed within text content or at the end of a section of content.
The 300 by 250
This unit is often called the medium rectangle. Like the 336 by 280, this unit tends to perform well went integrated with text contact. The medium rectangle is great below the fold placement for mobile sites.
The 728 by 90
This unit is also known as the leaderboard and typically performs well placed above main content and/or between articles for entries.
The 160 by 600
This unit is also known as a skyscraper intends to perform best in the left or right sidebar have your site.
The 320 by 50
This unit is also known as a mobile leaderboard and is one of the most popular sizes for use on a mobile site. It fills the width of most smartphones.
There are two additional sizes that are becoming more popular with advertisers:
The 300 by 600 and the 970 by 90
These are large ad formats that provide more space for advertisers to get their message across and can offer your users richer engagement.
If none of the standard sizes fit your needs, we have a custom add size feature that allows you to choose the dimensions of your ads within certain parameters.
Impressions: Showing more ads will explain how adjusting ad coverage and fixing common technical issues can lead to more impressions and more revenue.
What is an ad impression exactly?
An ad impression is counted each time an individual ad is shown on your site. Depending on the ad format, an ad unit could show multiple ads and serve multiple impressions.
For example, a 300×600 ad unit could show one image ad that would count as one ad impression or it could fill with four text ads that would count as four separate ad impressions.
Impressions can sometimes be confused with page views and ad requests – two other metrics you can see in your Performance Reports.
A page view is what we count in your reports every time a user views a page displaying ads.
Google counts one-page view regardless of the number of ads displayed on that page.
For example, if you have a page displaying three ad units and it’s viewed twice, this would be counted as two page views.
An ad request, on the other hand, is what is counted any time your site calls AdSense for an ad to be displayed (within that ad unit). Google reports an ad request each time a call is made, even if no ads are returned.
So if you are looking for optimum revenue from Google AdSense, these basic parameters are a must to know for any blogger. It not only increases your understanding about AdSense platform but also helps you devise the correct ad placing strategy. Not to mention before you go for perfect Ad Placement strategy, it is better to know in advance the impact they may create on your earnings.
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