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Saturday, 18 June 2016

How much can you make money with adsense with 1000 visitors per month?

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This is one of the most frequently asked AdSense questions and also one of the hardest to give a valuable answer to, as there are a lot of variables in play.   Average earnings per 1,000 ad impressions are said to be around $1 across the whole of the global network, but that isn’t very indicative of real results for most.

For the long answer read on.  I’ll walk through the variables, starting on the assumption that a site is hitting that $1 average:

If you earned $1 impression CPM, what would 1,000 visitors a day earn you?
If you know the CPM then the remaining variables are:

  • Ads per page : The average number of ad units displayed per page impression
  • Pages per visit : How many pages the average visitor views
  • Pages per visit X Average ad units X Impression CPM = Revenue per 1000 visitors
A website serving an average of 3 pages per visit, each with 2 ad units and an impression CPM of $1 would therefore earn $6 per 1000 visits.

But your impression CPM probably isn’t $1. Prices paid on AdSense are dynamic. They are fixed by auction rather than being standard across the network and the value of every impression changes.  Here is a quick run down of the important factors:

Major factors affecting CPM

CTR : The majority of AdSense bids are per click, so the Click Through Rate of your ad units has a huge impact on revenue performance.  Units that are in positions where they attract few clicks will have drastically different performance to those with high CTRs.

Geography : Advertisers are willing to pay differing amounts to reach customers in different regions.  Customers in the so called “tier 1” countries; USA, Canada, UK command higher prices.

Your niche : The majority of AdSense ads are contextually targeted. This means that AdSense will select ads that are related to the content of your page.  Due to the auction nature of AdSense different niches will attract different levels of bid.  For instance, content about holidays and flights is likely to attract higher bids than content about your pet hamster.

Choice of ad unit size : Advertisers prefer certain ad sizes .  Less common formats tend to attract less bids, and large formats tend to attract higher bids.  The same ad shown to the same user can achieve very different final rates across different ad unit sizes due thanks to the effect of upwards price pressure in more competitive auctions.

Visitor behaviour and demographics : In addition to contextual targeting, Advertisers can target by user demographics and behaviour (retargeting).  Having a valuable audience who shop online can push up rates thanks to the extra bids and auction pressure these methods introduce.

How good your site is: If you have a site that advertisers want to be see on, then you might also attract placement targeted ads.  These ads, specifically targeted at your website, can be very effective in increasing demand and help pushing up rates.

As Adsense publishers are mainly paid from the funds submitted by Adwords advertisers, your earnings depend on the type of ads displayed at your website. 

To forecast adsense earnings, the cost per click (CPC) of the ad unit, the click through rate (CTR) and the page views are used.

The formula for earnings calculation is:

CPC x CTR x PageViews

For the sake of argument, your website has 1,000 visitors a day and each visitor views 2 pages, there will be 2,000 page views per day.

Now if your average CPC is $0.50 and the CTR is 2% (2 ad clicks per 100 page views), your earnings will be 0.5*0.02*2000 = $20 per day.

How Adsense Revenue Actually Works?
Adsense has both CPC and CPM-based revenue model. Now let me explain the terminology that we use on Adsense first;
  1. CPC – Cost Per Click – Varies anywhere between $0.02 to $1 (Max. it can go up to $100 as well but in very rare cases.)
  2. CPM – Cost per 1000 Impressions.
  3. RPM – Revenue per 1000 Impressions.
  4. CTR – Click Through Rate – Clicks per 100 impressions. Varies anywhere between 1% to 10% based on your niche and ad placement.
  5. The other terms like Pageviews, Impressions and Earnings; which I guess are pretty much straight forward.
CTR = (Number of ad clicks * 100) / Number of page views
If my blog has 10,000 pageviews per month and 800 AdSense ad clicks, then my CTR is 0.8%.
CTR = (800 * 100) / 10000 = 0.8%
Most of the ads on Google Adsense are Cost Per Click based. That means you get paid whenever a visitor clicks on your ads(You are not allowed to click on your own Ads, it might lead to a permanent BAN). There are very few ads that are CPM based that means you get paid even though a visitor doesn’t click and just view the ad, but these ad formats are very less, and most of the advertisers avoid these ad formats.
How much money can you actually make from Adsense?
It depends on a lot of factors and out of all these the primary factors are CPC and CTR. CPC varies from niche to niche and also depends on the geographic location of your audience. If you are getting traffic from Tier-1 countries like US, UK, Canada, Australia, etc, then your CPC is likely to be high. But if in case you are receiving traffic from Tier 2 and Tier 3 countries CPC would be low.
CPC also depends on the keywords that you are targeting. If you are targeting keywords related to Gadgets, Health, etc., the CPC tends to be high because there is a lot of competition among advertisers in those sectors. So, if you are in a less competitive niche like the entertainment or education, that too in India then obviously your CPC will be very less.
So, lets suppose you have good CPC, and that doesn’t end there. You need a good CTR as well; that means you want more people to click on your ads. This depends on a lot of factors like Ad Placement, Source of Traffic, Web Page Loading time and a lot many other factors.
It all depends on these two factors. Combing these two a simple term is used to understand how well our ads are performing and its called RPM.
Page RPM = (Estimated earnings / Number of page views) * 1000
Estimated Earnings = CPC * Total Number of Clicks
= CPC * CTR*100
Ops, don’t panic. Am not teaching you any formula, and you don’t need any. You just have to look at the RPM.
Lets suppose like your RPM is $2 then you must be making around $2/1000 pageviews.
Then if you are receiving about 10,000 page views you should be able to make $20.
So, if your RPM is $5, then you would make $50 for every 10,000 page views.
If in case your blog is receiving an average of 10,000 pageviews per day which means 3,00,000 pageviews per month at an RPM of $3, the calculation goes as follows;
Total Revenue = RPM * Pageviews/1000 = 5*300 = 1500.
You should able to make about $1500 per month. So, now I hope you understand how to calculate the earnings.


Saturday, 28 May 2016 free blogger template for free 100% working

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shoutmeloud free template downloade
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