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FIB - Scams 101 - Ye Olde Archives
Posted By: S. Tanna In Response To: Which brings me to this Adsense question.... (MaaMaw)
Thursday, 21 July 2005, at 5:26 p.m.
> 625 impressions
You displayed 625 adverts
> 2 clicks
Your adverts got 2 clicks
> 0.3% CTR
Approximately 0.3% of the adverts displayed were click (2 is about 0.3% of 625)
> $0.26 CPM
For every 1,000 adverts that you show, you will earn about $0.26, if you continue at the current rate.
> $0.17 earnings (at this rate, I respect to retire at 55)
You've made $0.17 so far from your 2 clicks on 625 adverts.
> 50 impressions
You showed 50 adverts
> 2 clicks (received prior to the past 7 days, but who's counting?)
2 people clicked on the ads
> 4.0% CTR
Which is equivalent to 4% of your adverts being click (2 is 4% of 50)
> $3.31 CPM
At the current rate you would earn $3.31 for every 1,000 ads you show
> $0.17 earnings
You've earned $0.17 so far.
> What use is that kind of gobbledygook?
Impressions: How many google ads you showed. Don't you want to know?
CTR: What percentage of people click on the ads? Hopefully by changing site design, placement and style of the ads, etc., you may be able to get more people to click on the ads. This is the key metric to monitor as your site changes.
> And how can I have a COST per 1,000 if they're paying me and I'm not
> paying them?
It's always called CPM whether you're paying or buying.
In this case it really should be called "CPM Equivalent"
Because what it is telling you is that to match the Google ad performance by selling banner ads in the same spot, you'd have to be selling that space at the CPM rate given.
This may not be important to you, but it is important to larger sites which do sell banner advertising.
117 Ways To Increase Web Site Traffic
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