Sunday, July 24, 2011

Re: Adsense Calculations

Click through rate (CTR):
     It is the number of clicks an ad unit receives divided by the number of times the ad unit is shown (impressions).

Effective CPM (eCPM) :
       It is the cost per 1000 impressions, CPM is a useful way to compare revenue across different channels and advertising
     programs. It is calculated by dividing total earnings by the number of impressions in thousands.

Impressions:
       It represents the number of times an ad is displayed on Google or on sites or products in Google's ad network. A page
     impression is counted each time an ad unit is displayed on a publisher's site. Page impressions are used when calculating
     reports for AdSense publishers, rather than ad impressions

Clicks:  the number of generated clicks by all your ads.

Earnings:
      It is total money that would be given by Google AdSense for publishers who participate in their affiliate programs.

Earnings Per Click (EPC) :
         this is the average cost per click that would be given to publishers depends on the advertiser's bid, sum of the click,
     page impressions. However, it's still being a Google AdSense Secret.

The formula for Google AdSense calculation is:

      CTR = (Clicks / Impressions) * 100
      EPC = Earnings per Click

      eCPM = (Earnings / Impressions) * 1000
      eCPM = CTR * EPC * 10

     Earnings = eCPM * Impressions / 1000
     Earnings = CTR * EPC * Impressions / 100

    Example: I've got 31 clicks for 1700 impressions with an EPC of 0.05 $

                             CTR = (31 / 1700) * 100 = 1.82352 = 1.83 %

                            eCPM = 1.82352 * 0.05 * 10 = 0.91176 = 0.92 $
                             eCPM = (1.55 / 1700) * 1000 = 0.9117 = 0.92 $

                             Earnings = 0.91176 * 1700 / 1000 = 1.549992 = 1.55 $
                             Earnings = 1.82352 * 0.05 * 1700 / 100 = 1.549992 = 1.55 $

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