What Is CPC, CPM, CTR In Google Adsense?

How Does Adsense Revenue Actually Work on CPC, CPM, & CTR?

Adsense platform is both CPC and CPM-based revenue system. Now let us know the terminology that we are familiar with Adsense first;

What Is CPC, CPM, CTR In Google Adsense

What is CPC?

CPC – Cost Per Click – It varies anywhere between $0.02 to $1 (Max. it goes upto $100 as well but in rare cases according to High Paying Keyword)

What is CPM?

CPM – Cost per 1000 Impressions.
RPM – Revenue per 1000 Impressions.

What is CTR?

CTR – Click Through Rate – Clicks per 100 impressions. Varies anywhere between 1% to 10% based on the niche and ad placement.

The other Adsense terms like Pageviews, Impressions, and Earnings; which are pretty much straight forward.

CTR = (Number of ad clicks * 100 Impressions) / Number of page views

For example, If a blog has 10,000 page views per month and 800 AdSense ad clicks, then the CTR is 0.8%.

CTR = (800 * 100) / 10000 = 0.8%

Most of the ads which play on Google Adsense are Cost Per Click based. Which means you get paid whenever a visitor clicks on your ads(You are not allowed to click on your own Ads which are in your blog/website, it may lead to  BAN your Adsense Account). There are very few ads which are CPM based that means you get paid even though a visitor won't click and just view the ad, but these ad formats are very less in number, and most of the advertisers avoid these ad formats too.