What are CPM, RPM, CPC, PPC, CTR, and invalid activity?

In this article, I have discussed what is CPM, RPM, CPC, PPC, CTR, and the invalid activity from Google AdSense and YouTube Analytics.

CPM, RPM, CPC, PPC, CTR, and invalid activity



These elements of Earnings from Google AdSense, which we see on Google AdSense Earnings Reports or in YouTube Analytics Reports are discussed.
 

CPM, RPM, CPC, PPC, CTR, and invalid activity


This article is published for both kinds of people who are, 
  1. Running their YouTube Channels
  2. Or running any Website
It is very important to know about these key elements to understand the actual Earnings from Online Ads that are being shown on YouTube or Websites and Blogs. 

While reading this article, you must need to understand these three kinds of people who are playing important roles given below.
  1. Who publishes the Ads 
  2. Advertiser 
  3. The third is YouTube Channel creator or Website Owner

Ad publisher

Ad publishers publish the Ads on your channel or Website. You can consider any big publisher into your mind, for example, YouTube, Google, or any other. 

Advertiser

The second is the advertisers. Advertisers contact the Publisher to publish Ads given by the Advertisers. 

YouTube Channel creator or Website Owner

The third is YouTube Channel creator or Website Owner where the Ads are placed for advertisers, with the help of Publisher. 

CPM and RPM 


At first, we are discussing on CPM and RPM.

What is Google AdSense CPM?

CPM stands for “Cost per Mille” where M refers to the Roman Number thousand. 

It has two more names. 
  1. Cost Per Impression(CPI)
  2. Cost Per Thousand(CPT)
This is the cost that an Advertiser pays to Ads Publisher for every 1000 Ad Impressions. 

We can explain this difference. It is the cost that an advertiser pays for each time, the Ad is displayed on YouTube or any other webpage. 

Let’s understand CPM with an example.

Let's think an Advertiser has the CPM of 4$. That means Google or YouTube will take 4$ from the Advertiser for 1000 Ad Impressions. And it means 1000 Times the Ad will be displayed at 4$. 

Here you have to keep in mind that this 4$ is not the final earnings based on the CPM. From here, YouTube keeps 45% of this, and the rests 55% is given to you which means Out of 4$, YouTube will keep 1.8$, and the rest 2.2$ will be given to you. 

Advantage

The main advantage of CPM is that even if you don't get huge traffic or clicks, you still earn money against each Ad Impression with less traffic, as a Website owner or YouTube channel owner. That is all about the CPM. 

What is Google AdSense RPM?

RPM is a very important factor. Full-Form of RPM is Revenue per thousand impressions(RPM). RPM represents the estimated Earnings that you receive for every 1000 Ad Impressions shown. 

The Exact earnings from YouTube are not the RPM.  

How RPM is calculated?

Dividing the estimated earnings by the total number of Ad impressions you have got and after that multiplying that result by 1000. This is the RPM result.

So, 

The ad RPM equation will be like this,
Ad RPM = ( Total Estimated Earnings / Total Ad Impressions) *1000

Let, if your estimated earning is 100$ from 20,000 Ad Impressions. Then your earning will be 5$. 

You don't need to calculate every time, Google AdSense automatically calculates and it will be shown to your AdSense Account. You get an average RMP based on your content niche.

From overall discussions on RPM and CPM, it can be said that
  • CPM is what the Advertiser pays to YouTube or Google 
  • RPM is what YouTube or Google pays to us or You ( YouTube Channel creator or Website Owner)
Now we will discuss CPC and PPC.

What is Google AdSense CPC?

CPC stands for Cost Per Click. It is the amount that Youtuber or website owner earns, from each time a user clicks on the Ad.

CPC for any ad is determined by the advertisers. Some advertisers may be willing to pay more for clicks, some willing to pay less. Basically, this depends on what they are advertising.

Let’s take an example. Suppose the CPC defined is 0.06$ which means, every time an authenticated user clicks the ad,0.06$ will be added to your total earnings.

In this way, based on CPC, for 1000 clicks your earnings will be 6$. 

What is Google AdSense PPC?


PPC stands for Pay Per Click. It is a model in which an advertiser pays to the Ads Publisher, for each time their Adis clicked by any user.

It is basically a kind of paid advertisement initiated by the Advertiser for any product or service. In this way, you can also sign in to Google AdWords Account and start a campaign, if you want your website at the top in search results.

Similarly, if you want to increase the traffic for your YouTube channel, you can start an Ad Campaign on YouTube also for the advertisement of your channel or for any product or service launched.

Now, we will discuss CTR and invalid activity.

What is Google AdSense CTR?


CTR stands for Click Through Rate. There are two types of CTR.

  1. Page CTR 
  2. Ad CTR

Page CTR

Page CTR stands for the number of Ad clicks divided by the total number of page views.

For example, if you have received 40 Ad clicks from 1000 page views of your websites. For these values, the CTR percentage will be

(50/1000) *100

And the CTR output is 4%.

Ad CTR

Similarly, Ad CTR is calculated as the number of Ad Clicks divided by the total Ad impressions shown.

You can understand better if you think of YouTube.

Let you have received a total of 40 ad clicks from 1000 Ad Impressions. From these, the Ad CTR Percentage will be

(40/1000) *100.

Which is 4%.

What is Google AdSense Invalid Activity?

So let's talk about Invalid Activity. You must avoid invalid activity on YouTube Channel or Website, wherever the Google Ads are being shown whether it is Banner Ads or Visual Ads.

In simple words, to increase your Earnings from these Ads, do not click your own ads and avoid the situation where one or few users are repeatedly clicking on the ads or watching the Ads completely.

Because this will suddenly increase your CTR percentage due to which your Google Ad-Sense account may get suspended.

Google tracks all the activities done on a platform. These tracks include the clicks or impressions generated by unethical users, automated robots, and other unusual illegal traffic sources.

Google and YouTube have a special team that is dedicated to detecting invalid activity using several specialized tools. They use several types of techniques based on extensive experience in tracking and monitoring the behavior of users. 

Google may suspend your AdSense account permanently, or for few months after watching such invalid activities on the first warning, they will suspend the account for 30 days which is also non-appealable, which means you cannot appeal for that. So please don't ignore these things.

Hope from overall this discussion you have understood CPM, RPM, CPC, PPC, CTR, and invalid activity. 

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