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Wednesday, November 7

Google AdSense Calculator

This AdSense Calculator is designed to help you to predict changes in your earnings depending on improvement (or deterioration) of Page Impressions, Click Through Rate and Cost Per Click. For example: if your traffic is currently 500 visitors per day but your goal is to reach 10,000 visitors per day, you could predict the earnings at that goal.

Page Impressions - The amount of times your AdSense Units are viewed. This figure is directly proportional to your website's traffic so improving your traffic will improve your impressions and earnings.

CTR (Click Through Rate) - The ratio of impressions to clicks. If you have 1,000 impressions and 50 clicks, that's a 5% Click Through Rate. The higher the CTR the better, as a higher CTR results in more clicks and therefore, higher earnings.

CPC (Cost Per Click) - The amount of money paid per click of your AdSense units. This figure is related to the topic or keywords of the website displaying the AdSense. For example: Search Engine Optimization advertisements may pay $4.00 per click while advertisements for Online Games may pay only $0.30. To find out your CPC, just divide your earnings by clicks e.g. $5.00 earnings from 5 clicks is $1.00 per click.

Earnings from AdSense contextual ads can come from clicks or impressions, but the amount earned may be below 2 decimal points and may show as zero in the report, the Cost for a single impressionmay be such a small figure that it may take many decimal places before you see any significant figures.

So Google AdSense has come up with something called CPM which stand for Cost per 1000 impressions and is calculated with the formula

CPM = (earnings X 1000)/no. of impressions
A rearrangement of the above figure will give the formula
earnings = (eCPM X no. of impressions)/1000.

where eCPM is the effective Cost per 1000 Impressions, sometimes, you see in the report no clicks for a particular channel, zero earnings but a positive figure for eCPM, that means you have earned something from those impressions, you can use the above formula to calculate how much you earn or, simpler, enter the no. of impressions and the eCPM into the respective cells of the spreadsheet below (the spreadsheet is interactive), and the earnings will be automatically calculated for you, try it and see, you can also use the table to confirm the CPM earnings reported when you see a small figure for earnings but zero for clicks.

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