How to Calculate Net Effective CPM
Effective CPM, or Cost Per 1000 (Mille) Hits, is a statistic that Google AdSense customers often use to track the effectiveness of particular advertisements on their websites. Despite the name, CPM is not actually a cost. It is the ratio of estimated earnings per 1000 page impressions or hits. Knowing the effective CPM of a website allows you to compare the performance of advertisements on different web pages within your site and estimate your future revenue based on past performance.
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Things You'll Need
- Calculator
- Number of page impressions of your website
- Monthly earnings from your web page
Instructions
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Write down how many hits or page impressions your website has over a given period of time. AdSense defines a page impression as the number of times a user visits a page that contains at least one advertisement. Pages with multiple ads only count as one page impression.
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Divide the amount your web page earned in that time by the number of impressions. If your earnings for one month were $10 and you had 150 page impressions then your equation is 10 divided by 150, which equals .06667.
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Multiply your answer by 1000. In our example, .6667 multiplied by 1000 equals an effective CPM of 66.67, or estimated earnings of $66.67 for that time frame.
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References
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