A Little Secret of Google AdSense: What is Google AdSense eCPM

A lot of people are confused about eCPM including me. We always see that eCPM shows us certain amount of earnings but somehow, that eCPM is not our earnings and we do not get a cent based on eCPM. So, what is actually eCPM?

eCPM stands  for Effective Cost per 1000 Impressions or we can call it Effective Cost per thousand Impressions. In other words, eCPM is the expected potential earnings we will get for 1000 impressions on our blogs. It means eCPM is a rough estimation of the money we will earn if we can generate 1000 impressions on our blogs.

How to Calculate eCPM

Actually, we do not need to know how to calculate eCPM since Google AdSense report will show us the values. But, I will share with you the formula to calculate eCPM of Google AdSense.

The above is the formula of eCPM. If your Total AdSense Earnings is USD$15.00 with Total Impression of 10,000 impression. Then, the calculation will be:

eCPM = USD$15.00/(10,000/1000) = $1.50

Note: eCPM is Cost per 1000 impression, so the total impression has to be divided by 1000 as shown in the formula.

What Secret is AdSense eCPM Telling You?

So, what is the secret that AdSense eCPM trying to tell you? Based on eCPM, AdSense is telling you the amount of  money you are able to make if you get 1000 impressions on your blog. This is important because it gives you the idea whether your AdSense Ads are designed and placed at the correct location.

If your AdSense Ads are designed and placed at the correct location, you will see better eCPM.

Use eCPM to Judge which AdSense Ads Perform Better

Now, you know how eCPM works. You can now create 2 AdSense Ads on your blog and check the eCPM. The one with higher eCPM will probably earn you more money than the one that has lower eCPM.

For example:
You create a banner ads and place it next to your blog hearder.
Then, you create another Skyscraper Ads and placed it at the sidebar.
Banner Ads - eCPM $1.50
Skyscraper Ads - eCPM $1.80

This shows that Skyscraper Ads will perform better as compared to the banner ads.

From eCPM, you can roughly tell the performance of AdSense Ads on your blog. You can use eCPM to find out the best AdSense Ads size for your blog and find out the best location for AdSense Ads on your blog. This could essentially help you earn more and earn faster using Google AdSense.

Google AdSense Page Revenue Per Thousand Impression (Page RPM)

If you are using the new Google AdSense INTERFACE you will notice that the reporting format is changed. Now, you no LONGER see eCPM but you will see Page Revenue per thousand Impressions (RPM). So, what is this new Page RPM all about? I will share with you in this post about Page RPM in Google AdSense newinterface.

What is Page RPM Google AdSense

Page RPM is Page Revenue Per 1000 Impressions. Page CPM tells you the amount of money you can possibly make for 1000 impressions generated on your blog.

How to Calculate Page RPM in Google AdSense

The formula is quite simple. The picture above is the formula to calculate Page RPM. From the formula, it is actually the same as eCPM calculation So, Page RPM is actually eCPM but the numerator is Estimated Total Earnings in Page RPM.

In short, Page RPM is the same as eCPM. So, we still can use Page RPM to compare adsense ads performance on our blog just like using eCPM. If you have not read about eCPM, you can read Google adsense ecpm to learn more on the usage of it.