Many people are worried about their adsense results as they have very less income, and their main problem is lack of knowledge of this adsense report. So now let us have a look at these terms and let us try to understand each of them.
CPC (Cost per Click)
CTR (Click through Rate)
CPM (Cost per Thousand Impressions)
RPM (Revenue per Thousand Impressions)
CPC (Cost per Click):
Cost per click (CPC) completely depends on the Sponsors or Advertisers that how much they want to pay for a single click on their ads. It is not in your hand so you don't have to worry about high CPC.
CTR (Click through Rate):
Click through Rate (CTR) determines how often the users or your blog readers click your ads. CTR is the number of times a click is made on the advertisement divided by the total impressions (the times an advertisement was served). If CTR is too high then you must be aware that someone (who might be your competitor) is not click bombing on the ads on your blog.
CTR = ( Clicks / # of impressions, views, or queries) * 100%
For example,
If:
Clicks = 10, Page Views = 500
Then:
CTR = ( Clicks / Page Views ) * 100%
CTR = ( 10 / 500 ) * 100%
CTR = 2%
CPM (Cost per Thousand Impressions):
Now let us throw some light on Cost per Thousand Impressions (CPM). Advertisers running CPM ads sets rate per 1000 ads served and pay each time their ad is displayed. As a publisher, you are going to earn each time a CPM ad is displayed to your webpage or blog and viewed by a user. CPM ads compete against cost per click (CPC) ads in Google ad auction, and among these two, the ad which is expected to earn more revenue for the publisher is displayed.
RPM (Revenue per Thousand Impressions):
Revenue per Thousand Impressions (RPM) simply means how much is the average revenue for 1000 impressions. RPM is calculated by dividing your estimated earnings by the number of your page views and then multiplying by it with 1000.
Page RPM = (Estimated earnings / Number of page views) * 1000
RPM is a commonly used number in advertising programs, and you may find it helpful for comparing revenue across different programs and channels.
Let us have an example to understand it more clearly:
If you earned an estimated $0.25 from 50 page views, then your page RPM would equal ($0.25 / 50) * 1000, or $5.00.
Ad RPM = (Estimated earnings / Ad impressions) * 1000
Page RPM = (Estimated earnings / Number of page views) * 1000
Query RPM = (Estimated earnings / Number of queries) * 1000
I hope now you can simply analyze your Google Adsense Report and I also hope it will help you to generate more income by making appropriate changes to your strategies. Best of luck with your Adsense and keep earning.