Wednesday, May 22, 2013
First and foremost, before we talk about advertisers and advertising,
lets go over some basic terms.
Click-through rate (CTR)- A way of measuring the success of an online advertising
campaign for a particular website as well as the effectiveness of an email campaign
by the number of users that clicked on a specific link.
This equation might help you understand how your CTR is calculated and how that will affect your CPC. Your CTR is equal to the number of clicks divided by the number of impressions (views). Remember, your CTR and CPC go hand in hand.
Alas! be ye catching my drift?
Lets say you have 100 views and 5 clicks, your CTR should be 5%. Unless your math is off.
Okay, let's try another.
Suppose you have 643 views and you've received 27 clicks, Your CTR is going to be at 4%.
Again, I divided the number of clicks (27) by the number of views (643) to calculate the CTR, which came to be 0.041 (4%).
Now it's your turn to calculate a "CTR".
You have 1223 views and you've received 82 clicks, What is you CTR?
The cost-per-click (CPC)- The amount you earn each time a user clicks on your ad.
The CPC for any ad is determined by the advertiser;some advertisers may be willing
to pay more per click than others, depending on what they're advertising.
Page revenue per thousand impressions (RPM)- Calculated by dividing your estimated
earnings by the number of page views you received, then multiplying by 1000.
x = Your estimated earnings.
y= Your views.
Lets say your estimated earnings are $60.00 with 12,000 views and you want to find your RPM. You can use this equation to do so.
Now lets use the example.
So this means you earn 5 dollars for every thousand views.
You can figure out what your CTR & RPM is with basic algebra.
Now, your CPC depends on the advertisement that you are advertising on your blog.
We will discuss other attributes of monetizing your blog in further detail in the near
I hope this post has been informative, Brings you closer to saving your blog,
and helps with finding your treasure.