Adsense Trick 7 - Adsense Earning And Revenue Calculation

Google Adsense makes some simple calculation formula in order to calculate the Adsense earning of publishers. I will try to explaining about those calculation, and I hope it could be useful for some Adsense beginner. There are several terms that related with adsense tips and tricks.

Clickthrough rate (CTR) is the number of clicks an ad unit receives divided by the number of times the ad unit is shown (impressions).

Effective CPM (eCPM) is cost per 1000 impressions. From a publisher's perspective, CPM is a useful way to compare revenue across different channels and advertising programs. It is calculated by dividing total earnings by the number of impressions in thousands.

Impression is the number of times an ad is displayed on Google or on sites or products in Google's ad network. A page impression is counted each time an ad unit is displayed on a publisher's site. Page impressions are used when calculating reports for Adsense publishers, rather than ad impressions

Earnings is total money that would be given by Google Adsense for publishers who participate in their affiliate programs.

Earnings Per Click (EPC) actually is average cost per click that would be given to publishers depends on the sum of the click, page impressions and advertiser's bid. However, it's still be a Google Adsense Secret.

So, here are the formula for Adsense calculation :

CTR = (Clicks / Impressions) * 100

EPC = Earnings Per Click

eCPM = (Earnings / Impressions) * 1000
eCPM = CTR * EPC * 10

Earnings = eCPM * Impressions / 1000
Earnings = CTR * EPC * Impressions / 100

Eg.: Today you've got 9 clicks for 2017 impressions. (Just for sample, the EPC was 0.04)

CTR = (9 / 2017) * 100 = 0.4462 0.45

eCPM = 0.4462 * 0.04 * 10 = 0.17848 0.18
eCPM = (0.3599941 / 2017) * 1000 = 0.17848 0.18

Earnings = 0.17848 * 2017 / 1000 = 0.3599941 0.36
Earnings = 0.4462 * 0.04 * 2017 / 100 = 0.3599941 0.36