Tuesday, October 4, 2011

A Little Secret of Google AdSense: What is Google AdSense eCPM

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Google AdSense has been my favorite programs to earn money from blog. Google AdSense is working great on my blog and in this post, I am going to write into details about Effective CPM in Google AdSense. Now, Google AdSense has changed to new interface, eCPM is no longer being used, now Page RPM is being used instead. (You might want to read about Google AdSense Page RPM.)

Google AdSense eCPM Explanation

A lot of people are confused about eCPM including me. We always see that eCPM shows us certain amount of earnings but somehow, that eCPM is not our earnings and we do not get a cent based on eCPM. So, what is actually eCPM?

eCPM stands  for Effective Cost per 1000 Impressions or we can call it Effective Cost per thousand Impressions. In other words, eCPM is the expected potential earnings we will get for 1000 impressions on our blogs. It means eCPM is a rough estimation of the money we will earn if we can generate 1000 impressions on our blogs.

How to Calculate eCPM

Actually, we do not need to know how to calculate eCPM since Google AdSense report will show us the values. But, I will share with you the formula to calculate eCPM of Google AdSense.

AdSense eCPm

The above is the formula of eCPM. If your Total AdSense Earnings is USD$15.00 with Total Impression of 10,000 impression. Then, the calculation will be:

eCPM = USD$15.00/(10,000/1000) = $1.50

Note: eCPM is Cost per 1000 impression, so the total impression has to be divided by 1000 as shown in the formula.

What Secret is AdSense eCPM Telling You?

So, what is the secret that AdSense eCPM trying to tell you? Based on eCPM, AdSense is telling you the amount of  money you are able to make if you get 1000 impressions on your blog. This is important because it gives you the idea whether your AdSense Ads are designed and placed at the correct location.

If your AdSense Ads are designed and placed at the correct location, you will see better eCPM.

Use eCPM to Judge which AdSense Ads Perform Better

Now, you know how eCPM works. You can now create 2 AdSense Ads on your blog and check the eCPM. The one with higher eCPM will probably earn you more money than the one that has lower eCPM.

For example:
You create a banner ads and place it next to your blog hearder.
Then, you create another Skyscraper Ads and placed it at the sidebar.
Banner Ads - eCPM $1.50
Skyscraper Ads - eCPM $1.80

This shows that Skyscraper Ads will perform better as compared to the banner ads.

From eCPM, you can roughly tell the performance of AdSense Ads on your blog. You can use eCPM to find out the best AdSense Ads size for your blog and find out the best location for AdSense Ads on your blog. This could essentially help you earn more and earn faster using Google AdSense.

Earn Money From Blog using Google AdSense is simple but we need to do a lot of trials and errors to locate the best placements and identify the best AdSense format for our blog.

About the Author: This Post is written by William Lee (Nickname: Greenleaf). Make money blogging and work from home is the best job I ever experienced.