High AdSense RPM sites equate to higher income producing potential
It is no secret that AdSense RPM is my favorite AdSense statistic other than “Income”. Generally speaking, the
higher the RPM the more money making potential a web page has. We want to make money as fast as possible while minimizing expenses as much as possible.
Making money with AdSense is pretty fun, isn’t it?
RPM is my gold standard in estimating a specific web site’s ability to generate the most income per page viewed. RPM is also known as “revenue per mile” or revenue per 1,000 pages.
Maximize AdSense profit margin
We want to maximize our profit margin. If we have a site with an RPM of $10.00 than we are making exactly one penny per page viewed. One thousand pages divided by ten dollars is one cent.
Minimize hosting costs associated with serving pages
We need to minimize costs incurred in creating content, hosting content and other business related costs. The concept is simple except that our content creation cost is a one-time expense. So won’t it be nice to get paid for your content over, and over, and over again?
The example given above is an average across sites. So the data is anonymous. This prevents me from violating the AdSense terms of service. Wouldn’t it be terrible if your account was suspended once you were pulling in some serious cash?
I admit to accidentally violating the TOS in my first years blogging for cash. Google either turned a blind eye, didn’t see it, or didn’t care because my earnings were literally pennies.
Use RPM only if it is stable from day-to-day
If you have good traffic than your RPM will be stable, the law of large numbers helps to stabilize the number. Sporadic page views will cause RPM to jump all over the place making it less reliable. If your RPM is doubling one day and then dropping to zero the next day then you may not want to invest heavily based on RPM until it stabilizes.
Using RPM is no guarantee for huge profits, but if you can get more traffic to a high RPM site or page then you will make the MOST money per visitor.
Improve content quality to squeeze every last drop of RPM possible
If you strive for highest RPM, you will probably be improving just about every other AdSense statistic. RPM is made up of many statistics, including cost per click (CPC), impressions and click through rate (CTR). There are many quality statistics that are a factor in creating higher RPM pages. You can read about the AdSense quality statistics in some of my earlier articles.
If you need help building traffic to your web site you should see Add 1,000 Backlinks in A Day.
So remember that the highest RPM site is your website with the highest potential for producing easy revenue.
Classifying sites into quality bands using your RPM
If you have a website where the RPM runs higher than ten dollars on a consistent basis than you have got yourself a REALLY good site to make money with. There are other factors to be considered such as potential traffic and competition but if your RPM is that high you have broken into the ranks of successful AdSense entrepreneurs.
You could experiment with content and/or advertisement placement in an effort to increase click through rates (CTR), cost per click (CPC) and traffic volume. The combination of high CTR and CPC will automatically cause RPM to increase as it is a product of all three. Remember when AdSense was new and it seemed overwhelming?
Increase traffic – the AdSense RPM multiplier
Generally speaking if you add traffic to high RPM sites you will increase revenue faster than adding traffic to low RPM sites. If you average fifty cents a click (CPC) and your site has 5,000 page views which landed 5 clicks your click through rate is one click for every 1,000 pages or .1 %, very dismal. Computing RPM is simple in this example, you are making 50 cents for every 1,000 page views (RPM) because remember mile is analogous to one thousand page views. I’m not sure the history on why ‘Revenue per Mile” is used to mean revenue per thousand pages but the airlines typically measure success in RPM and cost per mile.
Adsense Actuals for a few sample websites
I haven’t posted an Adsense Actual posting in a while. I’m sorry about that I must have too many things going on and just didn’t get it done. At minimum I’m gong to post the chart “from the beginning” until now. It shows how slow money making has gone for me, yet one can be thankful that it has done as much as it did. I am happy with any growth as long as it is consistent growth.
Note that the Page RPM has gone up consistently over the last few years to around $5 or $6 consistently across all sites being monitored. The reason Page RPM shown below is only $3.76 is the average from the beginning of time until now.
Fake clicks on new accounts
Page RPM can sometimes be elevated during the first year of a site as friends, curious people, and nosy neighbors take interest in what you are working on you tend to pick up sympathy clicks, thankfully not enough to warrant Google blocking my account.
Getting false clicks is the wrong way to go about business. It will burn you in the long-run so do everything possible to prevent it. I have a suspicion that Google expects a certain level of false clicks at first, they are a cost of doing this kind of business.
Remember that the advertiser is your customer too. You want your advertiser to get the maximum benefit from their advertising dollars. Advertisers can choose to place ads on your site if they have good sales results from ad-clicks.
Treat your customer like you would a customer of any other business. That is common sense though right?
Sample Report – This report has a longer time-frame and skews the RPM lower because my RPM in the beginning was very low. This same report run for the last three months has an average RPM of almost double the $3.76 below.
I’ve found certain types of sites that work and am working on creating more of them. I am still playing the numbers game, the first goal was 1 cent a day, my second goal was ten cents a day consistently, my third goal was a dollar a day consistently, now my next goal is ten dollars a day, and then one hundred, and one thousand so I figure I’ve got at least another three to four years left. Will I stop at $1,000 a day? Probably not if I know myself but I would work at diversification, in fact I should be thinking of it now. Ideally I’d like to have something to hand down to my family, something with residual income generating ability.
Reflecting on past performance
I can say without a doubt in my mind that my biggest mistake was that I am not taking enough time to create quality content.
I will say that creating content is the single most difficult part of making money online. If you put a half-effort into your content you will get half the visitors I can look at every article I’ve written and most of the ones in the top ten for traffic are content that I spent at least a full day creating. If you want to spin some easy fluff content you can’t expect much, if you work hard you are usually rewarded and I guess that is a good note to end on.
Revenue Per Mile (RPM) as taken from Google AdSense Help:
Revenue per thousand impressions (RPM)
Revenue per 1000 impressions (RPM) represents the estimated earnings you’d accrue for every 1000 impressions you receive. RPM doesn’t represent how much you have actually earned; rather, it’s calculated by dividing your estimated earnings by the number of page views, impressions, or queries you received, then multiplying by 1000.
RPM = (Estimated earnings / Number of page views) * 1000
- If you earned an estimated $0.15 from 25 page views, then your page RPM would equal ($0.15 / 25) * 1000, or $6.00.
- If you earned an estimated $180 from 45,000 ad impressions, your ad RPM would equal ($180 / 45,000) * 1000, or $4.00.
RPM is a commonly used number in advertising programs, and you may find it helpful for comparing revenue across different channels.