What is Ad Network, CPM, CPC, PPC, CTR, RPM in AdSense
Before diving into the world of advertising & publishing, there are few things which you must have knowledge about. These terms are Ad Network, CPM, CPC, CTR, RPM in Adsense, and PPC. You must be wondering what are these things because you never heard about these before. Well, I am here in that case for solving your problems. In this article, you will find out about these terms and their uses, methods of calculating, and terms like Ad Networks, PPC, everything will be cleared until the last of this article. So let’s get started.
If you are totally new in this world and don’t have any knowledge about Ad Networks then it’s a good place you visited. Basically, an Ad Network is a method of online advertising. The most important thing is required here is an advertiser who wants to sell his product and how will he sell it? Well, the advertiser will join an ad network where he will see thousands of thousands of publishers are there and he can find some publisher’s blogs (keywords) related to his products. And that’s all, that ad network will provide ads for his product on the publisher’s blog.
Both Advertisers and Publishers can get profits using Ad Networks. Publishers can monetize their blogs using Ad Networks and earn money. There are so many Ad Networks are available nowadays and we brought out some of the best of them in our previous articles which in case you can find in our website in order to use them for advertising as well as publishing. Choosing the best ad network is the key to success. Some of the best Ad Networks you can start your business with:
- Google Adsense
After understanding Ad Networks, as a publisher, you must be thinking about making good revenue from your blogs but what mistakes most of the publishers do? They don’t understand these important terms CPC, RPM, CTR, and CPM. And for advertisers too, you should invest your money in the best ad networks.
What is CPM & How it works for Advertisers and Publishers?
CPM (Cost-per-mille), known as cost-per-thousand, it means per thousand ads impression. It’s basically for the advertisers as their product’s ads will be shown on some related keywords blogs and then with every thousand impressions of ads to the users, they need to pay some amount to their ad network. And that is definitely not a waste of money because think if you are selling a $1000 product and spend like $5 in CPM, and think if someone out of those 1000 users wants to buy your product, well, it is profitable. Same for a publisher, every time people will visit his blog and after every 1000 ads impression, he will receive some amount of money.
What is CPC & PPC? Importance & Effects
CPC (Cost-per-Click) and PPC (Pay-per-Click) are two different things. CPC is used in terms of publishers, and PPC is for advertisers. So what are these and why you need to know about these terms? First of all, CPC & PPC are the most important things you should know about if you are looking to advertise or publish your blogs. So how CPC & PPC work and what are their effect on Publishers & Advertisers?
What a Publisher should know about Cost-per-Click?
For a Publisher, i.e, you are writing some blogs related to insurance keyword, in your newly designed website. And in case you are an expert in writing and complete some awesome quality blogs then you try to monetize your website using some Ad Network and you get approval. Then your earning try to start and the blog in which you have written some topics about insurance gets hits. And surprisingly that blog uses some ads related to insurance and you know what?
In case insurance keywords have high cost-per-click, you will get more money when the ads in your that blog will be clicked. That’s the power of CPC. Not every keyword has a high CPC, you should know that. To find out the high CPC keywords, you can visit our website, we brought like 40-50 high CPC keywords you can try using in your blogs but keep that in mind, you aren’t the only one who is using them. You gotta be an expert in writing and need to rank up your blog using many techniques like On-page SEO.
What an Advertiser should know about Pay-per-Click?
For an Advertiser, i.e, if you are an advertiser, think if you are a CEO of a big sports car company and want people to know about your latest car models, you want to advertise them, then you choose an ad network and basically because your product has so much value in market and then you are simply paying some amount of money whenever your product’s ads are clicked, this is PPC ( pay-per-click). Most insurance companies, hospitals, doctors, lawyers pay more money whenever their ads are clicked you know why because they have so much value in their customers. Using some thousand dollars on ads is not that big issue for them. And small companies pay less money whenever their product ads are clicked. This is the reason why every advertiser and publisher should know about PPC & CPC.
What is CTR & How can you find it?
CTR is a very important term for Advertisers as well as publishers. It means click-through-rate. It is the ratio of the total impression of ads to the number of ads clicked. It has great importance because whenever your CTR decreases below 1, it means no profit in terms of publishers and so for the advertisers. It’s because publishers will not be able to make revenue because of very low CTR as well as the advertiser’s business will be too slow because they aren’t getting customers to make a profit.
CTR= total impression of ads/number of ads clicked
Just like that, even if CTR increases too much, it can be harmful to both publishers and advertisers. That is because, when the publisher’s blog CTR will increase too much, the Ad Networks may penalize him for fake & fraud clicks on the ads. And so for the advertisers, if CTR increases too much, they need to pay for every single click which can be bad for their business in many cases because of fraud clicks on their ads.
What is Page RPM in Google Adsense & How can you calculate it?
RPM is known as revenue per thousand impressions. Page RPM depends upon number of page views and your estimated earning. Having an RPM of 1 or 2 is average in Google Adsense. The increase in RPM can be very profitable for publishers.
To calculate Page RPM= (your earning / number of page views) * 1000
If you earn like $62 with 33k number of page views then the page RPM will be (62/33,000)*1000 and that will be equal to 1.8787=Page RPM= 1.9