Friday . 08 Dec. 2023

What is adsense RPM and how to increase adsense RPM for increasing revenue?

What is adsense RPM and how to increase adsense RPM for increasing revenue?

Adsense RPM is referred to as earnings per 1000 visitors ( EPMV). It can also be viewed as a total session revenue. It is a metric that shows total earnings that are obtained by 1000 visitor on the website.

 Adsense  RPM is the metric chosen to define total revenue per session. It is an excellent metric for digital marketers and publishers to determine how much they earn per visitors.

Nowadays most of the publishers focus on increasing page CPMs and RPMs but not Adsense RPM which always point you in the right direction. It is the revenue per thousand impressions and calculated by dividing estimated revenue by ad impressions and multiplying it by 1000.

Adsense RPM= (Estimated earnings/ Ad impression) X 1000

Optimize Adsense RPMs not CPMs

CPM stands for cost per thousand impressions and has been used by advertisers to define the cost of Adsense placement. Note that it is a single variable in the overall earning equation. So, it is very dangerous just to optimize the CPMs. It is not suitable for the high earning location where people visit fewer pages.

Yes, high CPMs contribute to a high page RPM but you will lose a lot when people bounce after visiting an only single page. Higher CPMs helps in generating short-term revenue but with bad user experiences and less overall revenue per visits.

It is always better to optimize Adsense RPM because even if your page CPMs and RPMs go high your total revenue can go down. But your total revenue will always go up if your AdSense RPM goes high.

How does user experience impacts the AdSense RPM?

Adsense RPM is very important for the publishers because it accounts for how visitor behaviour is calculating into total website revenue.

Suppose a mobile visitor lands on a page that contains high-paying video ad. It is the single ad with CPM of $20 generating  RPM of $20. If the visitor gets annoyed by that ad and leaves that page your total revenue for such thousand sessions will be just $20.

On the other hand, if a mobile user lands the same site that contains 3 display ads with CPMs of $4 each. In this case page RPM is much low, only $12.

Look closely, this time visitor gets less annoyed by ads and goes to the next page and if that page contains the same ad setup, total revenue will be $24.

In conclusion, higher CPMs/RPMs produces less AdSense RPM and vice versa.

Make more money with AdSense RPM?

One of the best way to earn money from this metric is to understand the page that is generating the highest Adsense RPMs. Make an analysis on the page that visitor land on and generates the highest Adsense RPMs.

You can easily discover which is generating a huge amount of money by observing Adsense RPM vs page RPM in top landing pages.

You can draw a conclusion from those landing pages and apply similar content strategies as of those top pages. You as a digital publisher should always focus on increasing AdSense RPM for higher revenue.

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