How To Calculate Adsense Earnings

Whenever someone from your audience clicks on one of Google AdSense's targeted ads, you receive a portion of the payment. Whenever a user clicks on an ad, the publisher receives 68% of the payment.

Ilesanmi AdekanbiJuly 22, 2022

7 minutes read

Google AdSense is a program run by Google through which website publishers in the Google Network of content sites serve text, images, video, or interactive media advertisements that are targeted to the site content and audience.

These advertisements are administered, sorted, and maintained by Google.

Google AdSense allows you to earn money from your website no matter you are a beginner or an expert. It is one of the most popular advertising platforms available because it’s easy to learn.

Advertisers are those who will place ads onto AdSense-approved websites.

Publishers are those who allow those ads onto their websites or add AdSense onto their websites.

Users or customers are those who search or click on these ads according to their needs.

How does Google AdSense work?

It works by matching the content of the visitors and your ads displayed on websites. The ads are placed by the advertisers for promotions of their products.

They have to pay for every click performed by the users. Advertisers can choose the number of relevant websites to place their ads to get genuine customers/users. As the auction occurs for the ad, different bids pay for every ad so your earnings may vary.

What does a publisher or website owner do for AdSense

You need to make your ad space onto the website by pasting the ad code.

The ad which gets the highest bid on auction will appear on your site.

Billing of all advertisers and networks is monitored by Google and paid on time.

Who can use it?

Anyone who owns a website and meets AdSense standards can use this platform. Publishers can earn money through AdSense by placing ads on their website:

Clicks: Publishers get paid for users clicking on the advertisement and connecting to the advertiser’s website.

Impressions: Publishers also get paid for the number of page views(user views) the ads get onto websites.

How to calculate Earnings

Know the following terms:

Page Views:

Page views vs Visits: Page views count the number of times a page is viewed. Visits count the number of sessions for visitors. One visit consists of one or more page views.

A page view is what Google counts in your reports every time a user views a page displaying Google ads.

We will count a one-page view regardless of the number of ads displayed on that page. For example, if you have a page displaying three ad units and it is viewed twice, you will generate two page views.

2. Impressions

An impression is when an ad is fetched from its source and is countable. Whether the ad is clicked is not taken into account. Each time an ad is fetched, it is counted as one impression/

An impression in Adsense is counted for each ad request where at least one ad has begun to download to the user’s device. It is the number of ad units (for content ads) or search queries (for search ads) those load ads.

3. Page revenue per thousand impressions (Page RPM)

Page revenue per thousand impressions (RPM) is calculated by dividing your estimated earnings by the number of page views you received, then multiplying by 1000.

Page RPM = (Estimated earnings / Number of page views) * 1000.

However, that calculation changes depending on the technology you’re using on your page and the number of revenue sources you have.

4. Page Click Through Rate (CTR)

The page Click-Through Rate (CTR) is the number of ad clicks divided by the number of page views.

In practice, the higher your CTR, the better for your business. Generally, a click rate of 3% or more is considered satisfactory. To assess whether this metric is high or low, you must consider your business segment and the performance of competitors, in addition to your experience with ads.

Note: It is good CTR for Adsense if the click rate range from 50% to 3 %. At this rate, not only do blog or website earn a decent amount, but it also stays pretty safe. On the other hand, if your ad units get too many clicks and high CTR, your Adsense account can be exposed to certain risks.

Nevertheless, a 2% CTR is good, but continually improving this metric will make your account great.

5. Cost Per Click (CPC)

The cost-per-click (CPC) is 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.

If you enable ‘Both text and image ads’ AdSense will automatically show the ad with the highest bid on your website which means a higher CPC for you. In short, the more advertisers that are bidding to appear on your website the higher your AdSense CPC will be.

The placement of ads is another important factor. If you’ve 5 ad spaces on your page –there is a high probability that the ad with the highest CPC will be served in the first space. The CPC decreases towards the bottom of the page. So, if clicks are coming from the 4th of five ad spaces –it is likely that you’ll get a low CPC.

Note: The United States commands the highest CPC rates compared to other nations.

Clicks from some nations generate more revenue from advertisements than clicks from other countries.

This is due to their greater conversion rates, which allows them to make more money and engage advertisers in more business. The top 10 with higher CPC are:

The United States of America
The United Arab Emirates
Australia
Canada
Brazil
Marshal Islands
Italy
Germany
New Zealand
South Africa

6. Clicks

For standard content ads, we count a click when a user clicks on an ad.

Note: AdSense doesn’t pay based on views of an ad, instead, they use a cost-per-click (CPC) payment system. Whenever someone from your audience clicks on one of Google AdSense’s targeted ads, you receive a portion of the payment. Whenever a user clicks on an ad, the publisher receives 68% of the payment.

Calculate your earnings depending on CPC (Cost Per Click) and CTR (Click Through Rate).

If you are getting CTR around 5% (Which is average CTR) and CPC around 0.04 $ (Country like Nigeria, India and Pakistan get less CPC, most of the time CPC remain lesser than this) then on 1000 page views total ads click will be 1000×5% = 50 clicks and according to CPC 0.04$ total earning will be 50×0.04 = 2$.

Mathematically, If your CTR = 5%

Your CPC = $0.04

Page views = 1000

Clicks = Page views x CTR

= 1000 x 5%

= 50 clicks

Your earnings = CPC x clicks

= 0.04 x 50

= $2

Adsense

It’s a minimum earning one can earn through daily traffic of around 1000 page views. But, still, there is a number of factors matter like the keyword you are using and traffic source as well. Using link ads around the post title and a display ad in the site header improves Adsense earning in my opinion.

Let us consider high CPC country like the United States of America (USA)

CTR = 3.95%

CPC =S0.22

Page views = 1470

Clicks = Page views x CTR

= 1470 x 3.95%

= 58.065

≈ 58

Earnings = CPC x clicks

= $0.22 x 58.065

=$12.7743

Adsense

However, that calculation changes depending on the CPC which is not stable.

There are a few factors that will change the results-

Your website Page Views by each Visitor, let us consider it 2–3 Page Views per Visitor and CTR is around 2%.

Your Visitor’s Country like for Tier-1 Country e.g. the USA, it would be $1-$5 and for Tier-3 Country e.g. it would be $.10-$.50

Your Website Niche Like for Real Estate and Car Niche You will get a Very High CPC and for General Blog, you will get a lower CPC.

Tier 1 Country with Average Good Niche will get = 3000 Views X 2%= 60 ClicksX$1 to $5 = $60 to $300

Tier 3 Country With Basic Niche will get= 3000 ViewsX2%= 60 Clicks = $60

This Above Factor changes from time to time.

Finally, your Content and Search Engine Traffic can improve your CPC and earnings.

Content

Publish fresh and unique information about your niche with correctly managed keywords without any grammatical mistakes.

Search Engine Traffic

The polished articles with above-mentioned features will drive more organic traffic. The RPM can be improved by using a high ranking keyword that is related to the niche and not alters the quality of the article.

Getting quality backlinks will drive high traffic to the website. For this, you can hire Upniche to do the process of gaining good quality and authority backlinks that can provide extreme traffic to your website and that is search engine friendly also.

CPC Paying Keyword

Selection of high paying CPC keywords is another effective step to increase the Adsense Earnings. The adding high paying keywords should be related to content. The high paying keywords provide higher PPC rate.

Google webmaster

Check Google webmaster tool consistently and do it as a practice. It is the Free Search console tool best for analyzing the crawling structure of any site.

Avoid Too Many Ads

Adsense ads are graphical ads displayed in different formats. So many ads on the page will reduce the presence and good look of the page. We know Page views are most accountable for improving RPM. So you should reduce the number of ads and can delete those ads that are not performing well detected by Adsense Ad Review Center control panel.

Adsense Ad Review Center helps you to know low CPC paying advertisement companies. So you will remove those ads and allow other high CPC ads.

Monitor & Analyze

Google analytics is helping to increase the RPM of a website. You should monitor all clicks and impressions of your website. You must be there inattention to check the invalid clicks.

User Locations

You can find your huge audience’ region and target them using Google webmaster tool. Locations like US, Canada, Australia, UK these are one of the high paying locations when compared to Asian and that will help you to improve your page RPM.

The best way to improve your earnings is increasing organic traffic. The more natural organic traffic your website has, the more clicks you will get. Thus it will improve CTR, CPC & CPM. So ultimately that will have the major effect of improving page RPM.

Newsflash Nigeria is an online newspaper that is developed and written exclusively for Nigerians. It’s packed with up-to-the-minute Local and National Economy News, Share & Capital Market, Health, Sports, Education, Technology, Business and Opinions.