2:13 AM
I get bombarded with this question a lot of times. Recently, after my answer on Quora, the
number of people who have been asking me about this question has gone
high. So, I thought to make a clear article on what factors contribute
to the earnings of a Blog/Website through Adsense.
Google Adsense has been a primary revenue model for many Bloggers and
Internet Marketers. The best thing about Adsense is that they don’t have
any traffic requirement and accepts almost all the blogs/websites that
abide by their TOS. However, most of the Bloggers are not aware of the
fact that you don’t start earning money if you have an Adsense account.
You need traffic and that too targeted high-quality traffic. Let me
explain you what that means;
How Adsense Revenue Actually Works?
Adsense has both CPC and CPM-based revenue model. Now let me explain the terminology that we use on Adsense first;
- CPC – Cost Per Click – Varies anywhere between $0.02 to $1 (Max. it can go up to $100 as well but in very rare cases.)
- CPM – Cost per 1000 Impressions.
- RPM – Revenue per 1000 Impressions.
- CTR – Click Through Rate – Clicks per 100 impressions. Varies anywhere between 1% to 10% based on your niche and ad placement.
- The other terms like Pageviews, Impressions and Earnings; which I guess are pretty much straight forward.
CTR = (Number of ad clicks * 100) / Number of page views
If my blog has 10,000 pageviews per month and 800 AdSense ad clicks, then my CTR is 0.8%.
CTR = (800 * 100) / 10000 = 0.8%
Most of the ads on Google Adsense are Cost Per Click based. That means
you get paid whenever a visitor clicks on your ads(You are not allowed
to click on your own Ads, it might lead to a permanent BAN). There are
very few ads that are CPM based that means you get paid even though a
visitor doesn’t click and just view the ad, but these ad formats are
very less, and most of the advertisers avoid these ad formats.
How much money can you actually make from Adsense?
It depends on a lot of factors and out of all these the primary factors
are CPC and CTR. CPC varies from niche to niche and also depends on the
geographic location of your audience. If you are getting traffic from
Tier-1 countries like US, UK, Canada, Australia, etc, then your CPC is
likely to be high. But if in case you are receiving traffic from Tier 2
and Tier 3 countries CPC would be low.
CPC also depends on the keywords that you are targeting. If you are
targeting keywords related to Gadgets, Health, etc., the CPC tends to be
high because there is a lot of competition among advertisers in those
sectors. So, if you are in a less competitive niche like the
entertainment or education, that too in India then obviously your CPC
will be very less.
So, lets suppose you have good CPC, and that doesn’t end there. You need
a good CTR as well; that means you want more people to click on your
ads. This depends on a lot of factors like Ad Placement, Source of
Traffic, Web Page Loading time and a lot many other factors.
It all depends on these two factors. Combing these two a simple term is
used to understand how well our ads are performing and its called RPM.
Page RPM = (Estimated earnings / Number of page views) * 1000
Estimated Earnings = CPC * Total Number of Clicks
= CPC * CTR*100
Ops, don’t panic. Am not teaching you any formula, and you don’t need any. You just have to look at the RPM.
Lets suppose like your RPM is $2 then you must be making around $2/1000 pageviews.
Then if you are receiving about 10,000 page views you should be able to make $20.
So, if your RPM is $5, then you would make $50 for every 10,000 page views.
If in case your blog is receiving an average of 10,000 pageviews per day
which means 3,00,000 pageviews per month at an RPM of $3, the
calculation goes as follows;
Total Revenue = RPM * Pageviews/1000 = 5*300 = 1500.
You should able to make about $1500 per month. So, now I hope you understand how to calculate the earnings.
Yes
you can surely optimize your blogger blog but for that you have to
manually insert meta tags, optimize header tags, optimize title tags
to show post title before blog title in blogger, Insert google
verification codes as well as if you want to insert adsense you have to
manually add code in the templates if you have set up channels to track
your ad performance which might consume lots of time but more techy
stuffs for beginners
