Adsense eCPM role

Discussion in 'AdSense' started by Jalpari, Aug 23, 2007.

  1. #1
    For improving adsense earnings we need to increase CTR then wht is the role eCPM plays?
     
    Jalpari, Aug 23, 2007 IP
  2. sparxxx

    sparxxx Peon

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    #2
    eCPM tells you how much you earn in clicks for every 1000 adviews. So obviously, the higher the better.
     
    sparxxx, Aug 23, 2007 IP
  3. Dwaighty

    Dwaighty Peon

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    #3
    If you click on the question mark next to it you'll get an explanation:

    Effective CPM

    From a publisher's perspective, the effective cost-per-thousand impressions (eCPM) is a useful way to compare revenue across different channels and advertising programs. It is calculated by dividing total earnings by the number of impressions in thousands. For example, if a publisher earned $180 from 45,000 impressions, the eCPM would equal $180/45, or $4.00. However, please keep in mind that eCPM is a reporting feature that does not represent the actual amount paid to a publisher.
     
    Dwaighty, Aug 23, 2007 IP
  4. stackman

    stackman Peon

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    #4
    eCPM is not terribly useful. If we couldn't see our CTR, earnings, and impressions, the eCPM would be useless.

    On a particular page, if you haven't gotten 1000 impressions, it tells you what you WOULD have made if you had gotten 1000 impressions, AND the CTR stayed the same (which it doesn't), AND the PPC stayed the same (which it doesn't).

    For pages that have gotten at least 1000 impressions, eCPM is a averaging of three different factors (impressions, clicks, and PPC) that vary considerably day to day, even moment by moment. So it tells you what you've made in an average, average, average sort of way.
     
    stackman, Aug 23, 2007 IP
  5. godmode

    godmode Well-Known Member

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    #5

    Unfortunately, you didnt understand how adsense works. eCPM is in fact everything, it can simply tell you your earnings. CTR does not change your earnings but eCPM does.

    Do a simple calculation, impressions * eCPM =Earnings. So eCPM directly affects your earnings and CTR has nothing do do with it. Of course you need clicks to earn that money but even with lower clicks you can earn the same money which you would earn with higher clicks.

    So bottom line is eCPM matters.
     
    godmode, Aug 23, 2007 IP
  6. trichnosis

    trichnosis Prominent Member

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    #6
    ecpm has no role on your earning
     
    trichnosis, Aug 23, 2007 IP
  7. Jalpari

    Jalpari Notable Member

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    #7
    then how adsense works ... it depends upon CTR or eCPM ... i think CTR
     
    Jalpari, Aug 24, 2007 IP
  8. godmode

    godmode Well-Known Member

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    #8
    it does not depend on CTR. Let me explain you again.

    for e.g

    On Aug 23: you stats were

    1000 20 2.0% 5.20 5.20

    on Aug 24

    1000 25 2.5% 6.50 6.50

    Make sense? CTR does not change ur earnings but eCPM does.
     
    godmode, Aug 24, 2007 IP
  9. Bes

    Bes Active Member

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    #9
    Thank you.
     
    Bes, Aug 24, 2007 IP
  10. zsk_00

    zsk_00 Peon

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    #10
    page impressions (1), eCPM($100), CTR (100%) and earning($.1)

    From above example, what eCPM tells us that IF CTR stays at 100% and CPC stays at .1/click, then after 1000 page impressions, I will make $100. Since neither CTR nor CPC stays the same, so at the end eCPM does not mean much.
     
    zsk_00, Aug 24, 2007 IP
  11. godmode

    godmode Well-Known Member

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    #11
    not worth explaining and spending my time. Sorry you guys just dont get it.
     
    godmode, Aug 24, 2007 IP
  12. danimal

    danimal Active Member

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    #12
    that is dead wrong... if the ctr goes down, so will your paycheck, because you are getting fewer clicks.

    the only time that google pays by cpm is when it's site-targeted ads... most publishers get paid by how many clicks they have.
     
    danimal, Aug 24, 2007 IP
  13. tlainevool

    tlainevool Guest

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    #13
    CTR and eCPM are both just calculated averages. Neither one effects your earning, they are calculated based on your earnings. The raw data is impressions, clicks and earning for each click. The only thing that matters to your actual income is the sum of the earnings for every click you get.
     
    tlainevool, Aug 24, 2007 IP
  14. stackman

    stackman Peon

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    #14
    Right. eCPM is merely an interesting calculation, although not very useful. I've always wondered why it's shown.

    The only factors that affect what you earn are the number of clicks and what you are paid for each click -- and what you are paid for each click is nearly always different for each click you get. So, even your earnings divided by the number of clicks is an average. If you had two clicks and your earnings are $2.00, it could mean you got $0.25 for one of the clicks and $1.75 for the other. Or you may have gotten $0.50 for one click and $1.50 for the other. It almost certainly does NOT mean you got $1.00 per click.

    Everything is an average and, as I said before, eCPM is an average of an average of an average -- which makes it almost useless.
     
    stackman, Aug 24, 2007 IP
  15. tlainevool

    tlainevool Guest

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    #15
    Actually, CPM is a very useful measure. Let's say you want to test different versions of a page - one with two ads versus one with three ads. eCPM will tell you which one makes more money.

    Or let's say you have two sites that you feel have equally optimized ads. One has a eCPM of $10, one had a eCPM of $5. Which one will you concentrate on getting more traffic to?
     
    tlainevool, Aug 24, 2007 IP
  16. e-entrepreuner

    e-entrepreuner Peon

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    #16
    As far as I can see, a high eCPM will get your higher payout based on impressions alone. That means, you only need A LOT of traffic to make money even though no one clicks on the ads itself. For example, if you eCPM = $5, then if that category of ads leave 1000 impressions to all the visitors to your website, then you get paid exactly $5. If Google is serving you ads with $0 eCPM then you can only make money base on people actually clicking on your ads because you don't get paid per thousand impressions.
     
    e-entrepreuner, Aug 24, 2007 IP
  17. stackman

    stackman Peon

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    #17
    Not really.........because eCPM is not constant from day to day, from page to page, from site to site.
     
    stackman, Aug 25, 2007 IP