Thursday, February 5, 2009

CTR/eCPM/Page Impression? What Are Those?

Before having your strategy earning big bucks, it is important to understand the details of Google Adsense. When you login into your AdSense account and look at the reports, youll see a few abbreviations, these are important to understand in order to maximize your profits.

1. Page Impressions
When somebody clicks on your website, Google counts that as one page impression. And if that same person browses 10 pages of your site, it is counted as 10 page impressions. So, its the number of clicks.

2. CTR
CTR stands for Click Through Rate. It is the number of times the ad is clicked on divided by the number of times it is displayed (Page Impressions). For example, if you had 2,000 page impressions, and those 2,000 page impressions resulted in 200 clicks, that is a 10% Page CTR (200/2000 = 10%).

3. Page eCPM
eCPM stands for Effective Cost per Millie. Millie means thousand. CPM is what the old world of banner advertisements used in pricing their ads. If a site had a $10 CPM it means that you as an advertiser would pay $10 for every 1,000 page impressions that your ad was shown on.

With AdSense, eCPM is telling you how much you will earn on average for every 1,000 page impressions. For example, if you have a $25 eCPM, you will earn $25 for every 1,000 page impressions on your site. Google shows you this figure so you can get an idea of how much more they are paying you than a banner advertising network will pay you.