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AdSense Secrets: AdSense eCPM Explanation

A lot of people are confused about AdSense eCPM which you can see in the AdSense Report everytime you login to your AdSense Account.

In this post, I will try to explain the eCPM to you. Once you understand eCPM, then it will be a great way to increase your AdSense earnings. So, if you are serios to make money using Google AdSense, then read on.

What is eCPM:
eCPM is Effective Cost per 1000 Impressions or we can call it Effective Cost per thousand Impressions.

How to Calculate eCPM:
You can calculate the eCPM by dividing your total earnings by total impressions in thousands. eCPM is a useful method to compare the performance of each AdSense Ads on your blog.

For Example:
Now, you have $10.00 in your AdSense Account and you have total of 7000 impressions which make it 7 thousand impressions.

So, eCPM will be:
$10.00/7= $1.43

Remember: Total Impressions is in thousands. If you have 10,000 impressions, then it will be 10 for the total impressions.

What is the eCPM for:
After calculating the eCPM, it will have a value. From the example above, eCPM is $1.43.

The value of eCPM tells you something. Some Secrets!

According to the example above, Effective Cost per 1000 impressions will help you make $1.43. This means for every 1000 impressions your potential earnings for AdSense will be roughly $1.43.

eCPm is a rough guide or rough value to estimate the performance of your AdSense Ads on your blog. The higher eCPM might means you will be able to make more money from AdSense.

You could try different formats and color of AdSense Ads on your blog and use the Custom Channels to track the performance of eCPM of different AdSense Ads on your blog. When you have found the highest eCPM, use it. It might help you make more money.

For better understanding, read examples below:
If we have two custom channels and we called them 'Blue Skyscrapers' and 'Red Rectangles'. If the 'Blue Skyscrapers' channel gets 400 page impressions and make $1.50 in total earnings while the 'Red Rectangles' channel receives 200 page impressions and $1.00 in earnings over the same period.

We can use eCPM to compare the performance of both channels. Then, we can calculate estimated earnings for every 1,000 impressions. We find that eCPM for blue skyscrapers is $4.00 while the eCPM for red rectangles is $5.18.

This means if we received 1,000 impressions of blue skyscrapers, we would earn roughly $4.00. But for 1,000 impressions of red rectangles, we would earn about $5.18. Therefore, assuming that our sample size is large enough, it is to our advantage to switch to red rectangles throughout our site because they generate more revenue per impression.
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In short:
Anyway, eCPM is not always true. It is just a guide for the AdSense Ads performance on your blog. Please keep in mind that eCPM is a reporting feature that does not represent the actual amount paid to a publisher.