What is Cost Per Click (CPC), CPM, RPM and CTR of Google Adsense
If you are new to Google Adsense and Google AdWords, seeing these terms i.e what is Cost Per Click (CPC), CPM, RPM and CTR would make you feel as if you are reading Latin. But for real sense, the meaning of these words look way more familiar if we learn what they are. These terms are included in any ad-network and reflect the same meaning in all cases.
In general, Google calculates many matrics to make understanding of Google Adsense and Google AdWords easier. The above terms are some of those used in the calculation of ad revenue and advertising feeses in Google.
Here is a quick guide for you to understand what CTR, RPM, CPC and CPM are in Google AdSense and AdWords.
RPM and CPM Of Google Adsense
Before knowing about RPM and CPM you need to know the difference between an advertiser and a publisher. The publisher is one who publishes the ads provided by Google through AdSense and AdWords in their own websites or apps. Whereas an advertiser is one who pays money for the publishers who display their ads through Google.
RPM and CPM terms which almost have the same meaning. The only difference is that RPM is used in terms of publisher which means revenue per Mile and CPM is used in terms of advertising which means cost per mile. The CPM is the cost an advertiser pays for 1000 Impressions he gets on his add. The RPM is revenue an advertiser gets for 1000 impressions he gets on the ads he placed in his webpages.
Cost Per Click (CPC) Of Google Adsense
CPC is abbreviated as cost per click. The cost per click and pay per click are of the same meaning used in different ad networks. The term CPC is the base formula that decides the cost of advertising that an advertiser pays the publisher. The CPC is the cost of one click which leads the visitor to the advertiser’s website or landing page from the publisher’s web page.
In general, the advertiser pays the money to the publisher whenever a user clicks on the ad of the advertiser in the publisher’s page. The cost per lead is another exact term used in other ad-marketing Services where the advertisers pay money to the publisher whenever a lead is generated on the advertiser’s page.
CTR Of Google Adsense
The word CTR is abbreviated as Click Through Rate which is the major method of finding the exact metric of audience engagement to the ads out of total visitors visiting the web page. The CTR is obtained by calculating the number of times the ad has been clicked. The add click percentage to the ad Impressions will give you the Click Through Rate. The Click Through Rate is calculated to find out the ads that get most visitor clicks and in turn, letting the publishers choose the best places on the webpage to place the ads to get good revenue.
All these metrics are essential to understand the Google Adsense and Google Adwords strategies and letting publishers know the best places to choose on their webpages to make good revenue and for the advertisers to bid strategies that work out for them to make best leads for their business pages.
you can also check out the latest article Google Adsense Guide as well.