If you are new to Google AdSense than you may find it difficult to know what different terms means like CTR, CPM and Channels etc. Neither you will be able to increase your AdSense earning; unless you are good in AdSense Vocabulary its impossible for you to earn good income from it.
So for a newbie it’s very important to understand these terminology before actually starting using them.
Starting with the most used terms:
1. Page Impression: A page impression is generated every time a user views a page displaying Google ads. For example, if you have a page displaying three ad units and it is viewed twice, you will generate two page impressions. So it is most important for you to check page impressions weekly to know how your Ads are performing.
2. Clicks: It is the total number of clicks on your Ad unit, It should be higher. Our main focus is on getting clicks, as they play an important role in determining earning.
3. Page CTR: Click Through Ratio represents the percentage of page impressions that could lead in a click on an ad unit at your blog. For instance, if your blog gets 100 page impressions and 10 of them result in a click, then the CTR for your site is 10%.
4. CPM (Cost-per-thousand-impressions): The CPM is the amount an advertiser pays for every 1000 times a user views his/her ad and an impression is recorded. This figure will show which Ad unit is doing good.
5. Effective cost-per-thousand impressions (eCPM) is a useful way to compare revenue across different channels and advertising programs. Essentially, effective CPM represents your estimated earnings for every 1000 impressions you receive. It should be noted that eCPM is not used to calculate the earnings rather it actually depends on earnings and is helpful in tracking ad performance.
Understanding eCPM is not that easy so read this small example this will sort out all your confusions – eCPM what exactly is it?
eCPM is calculated by using below formula
eCPM = (earnings * 1000)/no. of impressions.
6. Ad units: It is used to display a block of Google Ads, there are a lot of Ad units available in AdSense, like Square, Rectangle, Leaderboard, Skyscarper, Link units etc.
7. Channel: You can set up channels to track the performance of individual AdSense ad units or to track earnings on particular sites.
These 7 terms are good enough for you to understand the complete pattern of how earnings are generated in Adsense, you can check a complete list of terms at Google AdSense Glossary for more. This is just an overview to terms which are most important to you, I will cover these terms in detail later so Subscribe to TWC to get more updates on this.