What is CPM, CPC, CPA and CTR| Adsense terms?
What is CPM, CUPS, CPA & Level AdSense Terms: If you have a website or blog, then you can earn money online from google adsense on your website. But for that you need to know some basic Google Adsense terms like CPM, CPC, CPA and CPR.
Along with these terms, if you know the efficiency and cost related to it, then it is even better. In this article, we are giving you an overview about these adsense terms and if you are an advertiser and want to put your add on websites by linking to Google Adsense, then it is important for you to know these terms –
CPM (Cost per Thousand –
“M” in CPM represents the roman numeral for 1,000) – The most basic tool of Adsense is CPM which is also called cost per thousand of impressions. This means how much cost the advertiser has to pay per 1000 impressions and how much income you will get from publishing on your website.
Advertisers bid on Google for CPM and tell how much they want to pay for the set of impressions. CPM bidding is best suited for those advertisers who focus more on brand awareness.
CPM How do you calculate?First of all, advertisers remove the cost by bidding for the required terms which have to be shown. After that the total number of impressions that your ad will get is divided by 1000.
For example, if your ad makes 10,000 impressions, then you have to divide by 1000. So 10000/1000 is 10.
In the next step – whatever bidding cost the advertisers have taken out, it is divided (10) by the above answer. Example – If the total cost of the ad is $200, then dividing $200 by 10, you will get CPM which is $20.
CPC (Cost per Click) –
This is currently the most common tool as it is very popular among advertisers and it talks about per click payment also it has nothing to do with impression.
CPC means how much you will get paid per click or how much cost the publisher has to pay if advertisers click on their ad banner.
The rate of cost per click depends on the keywords and its success rate. For example – the keyword “Finance” will be more expensive than any “Poem” keywords.
CPC Calculate karne ka formula – CPC = Advertiser’s total cost / Number of clicks
The rate of CPC can also be $2 per click and also 2 cents per click. The rate of CPC completely depends on the product and your market.
Along with many factors, it also depends on the keyword competition, the more the competition of the keyword, the more will be its demand and cost.
CTR (Click through Rate) –
Now you have come to know about CPM and CPC and now we are talking about CTR key which depends on both CPM and CPC. CTR measures the effectiveness of any advertisement while CPM and CPC measure the cost of advertising.
This means that CTR sees how many impressions or logos have seen the ad banner on your website and how many of them clicked. So this is the percentage rate of the people who clicked after seeing the ad banner.
For example – If your ad banner is seen by 500 logos but only 5 people clicked on the ad then the CTR will be – 1% or .01.
How to calculate CTR –
CTR = (Number of Clicks / Number of impressions) x 100
Example – (5 / 500) x 100 = 1%
CPA (Cost per Action) – Cost per action is also called pay per action (PPA) and cost per conversion. It is an online advertising pricing model in which advertisers pay for each specified action such as form submission, newsletter sign up, filling up inquiry form, registration or on any sale.
This is a method that gives perfect information about the efficiency of an apk online ad. In this, whenever a user engages in a defined activity, it is paid.