One of the most frequently asked questions by online article writers publishing on revenue sharing sites is: How much can I earn with Google AdSense? Theres no definite answer to this question, but there are certain factors influencing your earnings which can be explained. If you set reasonable goals and down-to-earth anticipations, you can learn how to influence factors determining your AdSense earnings.
Before you ask how much you can earn with AdSense, heres a list of questions to think about:
- How much traffic do your webpages (articles) receive?
- How much can you earn per click?
- Whats your clickthrough rate?
- How much money you would receive if you received 1000 impressions or page views?
- Have you created quality content providing good user experience?
Main Factors That Influence Your Earnings
If youd like to make money with Google AdSense, there are a few terms (factors) you should be acquainted with before you start worrying about your ad income.
? Traffic (the number of visitors/readers on your webpages)
Traffic in the online article writing world refers to the number of visitors viewing your webpages or articles. It is considered the most important factor influencing ad income.
The idiom ‘the more the merrier’ could absolutely be the main motto of all websites that want to make money. This means that the more people visit your webpages or read your articles, the chances of you receiving ad clicks and revenue are more likely. In plain English, higher traffic webpages have a greater earning potential, especially if users are interested in the site’s content, while lower traffic sites are likely to receive less ad clicks and revenue.
You can track your incoming and outgoing traffic in your Google Analytics account (Traffic report). By tracking your traffic, you can find out which articles are more popular and if there are any apparent trends, for example: if there is a specific page being viewed mostly by people in a particular country.
Not all traffic is the same; you can drive traffic by submitting your webpages in article directories, search engines, and building links. The best traffic is organic traffic though: web traffic coming from unpaid listing at search engines or directories. Generally, articles listed among the top organic results get most of the clicks from internet users.
? PPC (Pay Per Click) or CPC (Cost Per Click)
The pay-per-click (PPC), also known as cost-per-click (CPC), is the amount of money you earn each time a user clicks on an ad served on your webpage (if you are writing on Seekyt, ads are served with your AdSense tracking ID 70% of time).
The CPC for any ad is determined by advertisers who most often bid on keyword phrases relevant to their target market. Some of them pay more per click than others; the more they pay, the more you earn for each click. Having higher paying ads doesnt necessarily mean youll earn more because these ads are usually aimed at a smaller target audience and consequently generate fewer clicks.
For example, advertisers selling luxury cars might be willing to pay more than advertisers who sell video games. Therefore, if your webpage is about luxury cars, the ads that display on your site might pay more per click than those for video games. However, you may also find there’s less interest in luxury cars than in video games, thus balancing the pay-per-click difference.
Google always shows the ads that will perform the best, and the inventory of ads they choose from is determined mainly by the topic of your article. Therefore, Google AdSense revenue sharing model is based on contextual advertising.
PPC or CPC, just like CTR (clickthrough rate) are pricing structures generally referred to cost per action (when visitors act on your webpage, for example, when they click on an ad) and they differ from the pay-per-impression structure (see the paragraphs about RPM revenue per 1000 impressions below).
To check the CPC value of keywords and key phrases while using the Google Keyword Tool, you have to be signed in your AdWords account.
? CTR Clickthrough rate
CTR is an estimate of how often users click on your ads. It represents the number of clicks on an ad divided by the number of times the ad is shown impressions expressed as a percentage.
* An impression is a measure of the number of times an ad is displayed, whether it is clicked on or not (see the paragraphs about RPM below).
If you write on a larger site such as Seekyt or HubPages and receive one click on your ad after 100 people have viewed that ad, you are said to have a CTR of 1% which is decent (as described by Google). A 2% click-through rate is generally considered very successful, but the exact percentage is hotly debated depending on the situation.
You can check the clicktrough rate of your webpages in your Google AdSense account (home page) and in the Google Analytics account (Content report AdSense report).
? RPM Revenue per 1000 impressions
Revenue per 1000 impressions (RPM) is an estimate of how much money you would receive if you received 1000 impressions or page views.
In the context of online advertising, each time an ad is displayed on your webpages it is counted as one impression.
Whether it is clicked on or not, an impression is a measure of the number of times an ad is displayed.
- Cost per Thousand (abbreviated CPT, CPI or CPM)
* CPM cost per mille (mille is thousand in Latin)
When used in advertising, CPM, that is, RPM for sites earning revenue for advertising impressions, it relates to the cost per thousand page impressions. In contrast, CPC (cost-per-click, or PPC, pay-per-click) is click-based and not impression-based).
Page RPM is what was called Page eCPM (effective cost per mille) in the old interface.
RPM in the new Google AdSense interface:
Finally, RPM doesnt directly influence your earnings like CPC and CTR, but its a very helpful statistic to keep track of your earnings.
Note that if:
- you are viewing ad impressions it gives you the RPM which is based on ad unit impressions/queries,
- you are viewing Page Views it gives you Page RPM which is based on the number of page views.
RPM = (Estimated earnings ÷Number of page views) X 1000
For example, if you made one dollar with 100 impressions, your eCPM would be $10.00:
RPM = $1 ÷ 100 impressions X 1000 impressions = $1
- If you earned an estimated $0.11 from 22 page views, then your page RPM would equal ($0.11 ÷ 25) X 1000 = $4.4.
- If you earned an estimated $120 from 65,000 ad impressions, your ad RPM would equal ($120 ÷65,000) X 1000 = $1.8.
Another example of computing the RPM:
- Total cost for running the ad is $5,000.
- The total audience is 1,500,000 people.
- CPM is calculated as CPM = ($5,000 ÷ 1,500,000) X 1000 = $3.33
? Content your online article
Quality content is what web crawlers love and what will help you position high in search engine rankings. Rich content (abundant with useful information and relevant links) will create good user experience, more shares, natural backlinks, and consequently better targeted ads.The key to success is a combination of good quality content, interested users, high positioning in the SERPs and highly targeted ads.
5 principles of creating good quality content
Web Content: How to Write Online Articles
How to Generate New Article Writing Ideas
How to Create Multiple Titles Around a Single Topic
What can you do about these factors?
Traffic and content are two key factors that contribute to how much you’ll earn with AdSense, therefore, writing quality online articles and driving traffic in a good way (theres also a bad way which is not to be used). Good article promotion usually takes a lot of time and commitment; remember, quality traffic doesn’t increase overnight.
Besides creating great content and building quality links you should:
- optimize your articles (although be sure to make pages for users, not for search engines),
- avoid link farms although they may artificially raise your Google PageRank, you dont want backlinks from those sites because youll drop in the SERPs sooner than you think,
- be careful when sharing your posts on social networking sites. Most of them dont like self-promotion. Therefore, get to know the community on these sites first, and then post links only to those articles that you know they will be interested in.
Be sure to check all Googles Dos and Donts before you start writing and then you can find out how much you can earn with Google AdSense practice will show.