Understanding CPC, CPM, RPM, CPE Adsense 2017

Understanding CPC and CPM
if filled with acronyms. CPC,CPM,rpm the list goes on, while these acronyms represent important metrics, it can be hard to know where to start when it comes to increasing these value and, ultimately, increasing, your revenue. it's also the case that many of the common acronyms used in the online advertising industry can sometimes mean different things depending on the context and the usage,

which can be really confusing. let's walk through the most important ones right now, starting with CPM.

CPM stands for cost per 1000 impressions. from the advertiser's perspective, CPM refers to the price they're willing to pay to serve one thousand impressions of their ad. so in the AdSense auction if an advertiser bids a cpm of two dollars, this means he or she is willing to pay two dollars for every thousand times the ad appears to a user. you may have noticed that there are no CPM values in your AdSense reporting. in AdSense performance reports, we use the acronym

rpm, which stands for revenue per 1000 impressions. since ads are not displayed in even bundles of one thousand impressions all impressions served on your site, regardless of the bid type, are combined and averaged in you reporting to show your affective revenue per 1000 impressions, or RPM. to recap, rpm is an adsense-only term used to report your impression based revenue.CPM is an industry-wide term that refers to impression-based bids from advertisers. the next acronym to know is CPC.

cpc stands for cost-per-click. the cost-per-click is the price an advertiser pays each time a user clicks on an ad. in your reporting, cpc metrics show the revenue you receive each time a user clicks on an ad on your site. there are also two new bid types that will become increasingly popular down the road. the first is CPE or cost per engagement. wwith engagement ads, the advertiser pays only when a user interacts with the ad in a particular way beyond just clicking on it. these ads are largely video and rich media ads. the other new bidding metric is active view CPM. with active view cpm bidding, advertisers bid on one thousand viewable impressions and only pay for impressions that are measured as viewable. that is when at least 50 percent of the ad is displayed on screen for at least one second. as these new bidding types become more common, we will continue to provide more information on them, including in your adsense reporting.

in this unit, well focus on the changes you can make to your ad set-up to attract higher paying ads from advertisers. cover the various settings for your ads and your adsense account that could have had direct impact on your ad unit cpm and cpc.