How to Calculate RPM Google Adsense?

How to Calculate RPM?

• RPM = (Revenue / Pageviews) x 1,000

For digital publishers (bloggers, editors, etc) this is a critical metric. It’s the amount of revenue a publisher would earn from 1,000 pageviews on their website.

What does RPM stand for?

• RPM = revenue per mille

Mille is a word derived from Latin that means 1,000.

What is eCPM?

• eCPM = effective cost per thousand impressions

It’s the amount an advertiser would pay to show an ad 1,000 times (the M stands for “mille” which is derived from Latin and equals 1,000).

Why is RPM also known as eCPM (or vice-a-versa)?

• eCPM is such a popular term that publishers often refer to it as a synonym of RPM

Advertisers made eCPM such a common term that many publishers started measuring their stats by the metric, even though RPM is really the metric that publishers care about.

Why is RPM important?

RPM can be used to measure how effective your monetization strategy is for your site. Most bloggers utilize ad banners, like Google AdSense, to monetize a blog. AdSense provides a decent RPM while removing most of the hard work for the blogger. But, there are other ad banners that you could use like BingAds, AdBrite, Chitika, Bidvertiser, and Clicksor. If AdSense is providing you with a $5.00 RPM but an ad banner from Chitika is providing you with a $7.00 RPM, you should replace your AdSense banner with a Chitika banner.

Different types of RPM:

RPM isn’t just used to measure the effectiveness of ad banners. If you have an online store, an affiliate account, or direct services that you provide, you might be better off advertising your other monetization strategies than somebody else’s ad banner. For example, if you provide guest blogging services, you could replace an AdSense unit with an ad unit that advertises your guest blogging services. If you show your guest blogging ad for 1,000 pageviews and that generates one sale for $20.00, you would make 4x the amount of revenue that a $5.00 RPM AdSense banner would earn you!

Where to find your RPM data:

Typically you can find this data by using a combination of traffic data (example: pageviews reported by Google Analytics) and revenue data (example: revenue reported by Google AdSense).

Bonus Tip:

If you have multiple monetization strategies, you will want to isolate the RPM for each of them so that you can prioritize the most valuable money-makers on your site. What’s the RPM for the ad unit at the top left of your page? What’s the RPM for the ad unit at the bottom center of your page? What’s the RPM for your other monetization strategies?