CPC and CPM ads
When will Google pay us? Why there are some clicks on my ads, but there are no earning? I am pretty sure that those are not invalid clicks, then how come? What is the difference between CPC ads and CPM ads? On what basis they will lead to earning for me? In this post, I am going to explain the difference between the two.
For CPC ad, you will get paid whenever there is a click on this kind of ad, provided that the click is valid. The CPC is the amount an advertiser pays each time a user clicks on his/her ad. In Google Adsense, most of the ads is CPC ads, and you will get paid when there is click on it. Most of them pay in a range from 0.01 to 2 dollars. You should be lucky when you recieve two dollar for a click. Nearly all of the contextual ads and a portion of image ads belong to this kind of advertisements.
For CPM ad, it means Cost Per 1000 Impression. Advertisers running CPM ads set their desired price per 1000 ads served. You will get paid whenever there are 1000 impressions for that CPM ad. CPM ads compete against pay-per-click (or CPC, cost per click) ads in Google's ad auction system, so only the highest performing ads will be served to your pages. Advertisers will need to bid a higher CPM than the existing CPC ads in order to show. Both image ads and text ads can be paid on CPM basis, and both of them are always site-targeted. CPM text ads will expand to take up the entire ad unit. One thing that you should always bear in mind is that, for CPM ads, your earnings are associated with impressions only, rather than clicks. Google pays you each time a CPM ad is shown on your page, rather than when a user clicks on the ad and views the advertiser's site.
So, you may wonder how you can check the earning performance of your CPM ads. Actually, the statistics (ad impression and clicks) of CPM ads will be shown together with that of CPC ads in general report in your account. Sometimes, you may notice that even though you've received impressions for CPM ads, you're not displaying any earnings. No worry. This is because an advertiser may pay as little as $0.50 for each 1000 impressions of an ad. With each impression worth $0.0005, you could receive up to 9 ad impressions for total revenue of $0.0045 without any clicks or earnings appearing in your report. So, you may afraid your earning will be lost when it cannot come to a significant figure. No worry. Although Google will only show earning that is more than one cent, all the earning from impressions of CPM ads that is below one cents will be recorded and accumulated. It will then show whenever it reaches one cent.
Since CPM ads are paid on the number of ad impression, the location of the CPM ads highly affect the overall earnings for you. For example, if you put your CPM ad on top of your site, you definitely recieve more ad impression for that and have higher income, and vice versa.
Although there is no offical figure to prove, there is a general belief that most of the image ads are paid on CPM basis, while only little text ads are paid on CPM basis. To be honest, from my experience, CPC ads perform a lot better than CPM ads. The only suitable place to put CPM ads is probably the forum site. It is because in a forum site, the usual and regular visitors already get used to the ads there. They tend to have a much lower CTR, and thus CPM ads (which are not paid on clicks) are the most effective to maximize your earning.
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posted by Joe Li @ 12:56 AM
32 comments
32 Comments:
You explained CPC but not CPM !!!!
Why do you say so? I have concrete explanation on CPM ads too! In simple terms, CPM ads will only pay you whenever the ad is viewed for 1000 times, rather than a click on it.
I am planning to put up some google ads on my relatively new website (www.landofcode.com) thats been up for almost a month now in a few days.
After reading this article, I understand CPC and CPM ads better. Very good explanation.
Thank you very much for leaving the comment here. Hope you would be success with Adsnese.
P.S. Please kindly provide a link to my blog from your site.
Thanks for your explanation. Now I could understand what is CPM & CPC.
But I want to know 1 thing. I started my adsense last week. Yet now I received 1300 page impression. yet I havnt displayed any payment. when my payment will be displayed.
Suhasini,
Thank you very much for your comment & question. As mentioned in this post, you will be only paided for impressions with CPM Ads. However, we cannot tell which Ads is CPM or CPC Ads. Therefore even if you have more than 1000 page impressions, you are not garanteed to earn a penny.
P.S: Please put a link back to my site to help more Gsense newbies.
Hello
i read the cpmment about CPC and CPM ad.
when i add adsense ads to my website i do not know who to make diference. i do not know if i have cpm or cpc in my website.
http://wordstamps.net
You are right, abazzib.
There is no way you can know which ad is CPC or CPM. The distribution of which depends on the result of Adwords bidding system. You can change it manually.
Please put a backlink to us, so as to help more adsense newbies.
hey...I read ur post on the forum, Im an adsense newby and pls tell me how to us those section targeting and meta tags..visit my blog at www.cabaccisshawn.blogspot.com
Shawn,
No worry, dude. You are welcome to ask me any question at any time. Well, I have a post in this blog and specifically talk about Section targeting.
For the meta tag, it is a very useful and important place for you to do SEO and adsense optimization.
really nice
Thanks for your comment!!
How does meta tags and meta keywords help in a website?
Please refer to my latest post on meta tags, and the implementation guide on them.
Thanks for the helpful info.
You mention that it is possible to manually change CPM to CPC.
How can I do this?
One of my sites has started displaying CPM ads and I would prefer CPC ads like those displayed on my other sites
Cheers
Tony
Hi Tony,
I haven't said we can manually change to CPC ads. But from my experience (no official prove), image ads are more likely to be paid on CPM basis, while text ads are more likely to be paid on CPC basis.
Thanks for the prompt response.
Mine are all text ads.
Just doing the CPM trick on one of my sites and hope others do not follow this pattern !
All the best
Tony
Hi Tony,
Thanks for your comment and I hope you will have successful journey with Adsense.
Please also put a backlink to my site to help more Adsense newbies.
Great!
----------------
Getahoster
Hi Desi,
Thanks for your comment.
hai.
i'm raju after reading your article i understand the difference between CPC and CPM may be these add are the reasion for my lower income since last 1 month or so...but i have a question for u how to recognise the difference between CPC adds and CPM ads so it will be more helpful for us
Hi raju,
Thanks for your comment and question.
The fundametal difference of CPC and CPM ads have been outlined above in my post. But on the site, you hardly tell which ads is CPC and which one is CPM ads. There is one exception, if you see an ad block is filled with only one ad (should have more than 1 originally), then that ad is a CPM ads.
I'm really new to this adsense thing.
http://pixelminded.blogspot.com
Now I understand completely (I hope so) about CPC and CPM. You give a very nice and informative explanation.
Hi fullmark,
It is my pleasure to explain everything in Adsense. Just feel free to ask me if you have anything that you would like to know more about Adsense.
i have taken blogging seriously very recently and was curious about adsense but was discouraged to find only 1$ earning in a month though i have some 70 odd clicks for 500 impressions. I have some set of questions for you if you don't mind.
1. I have 4 blogs and one google account. So does it mean the stats which i see in adsense report includes all these 4 blogs? I see the same stats no matter which blog adsense console i open.
2. In the stats i see i have only CPM column and absoultely no CPC report. So it obviously means i have no CPC ads but i found my ads to be nearly text ads but not image ads. In that case i was supposed to have CPC but not CPM. Can i do something about this?
3. Does google track the IP when our blogs get the clicks? If yes then this should be a flaw coz one may use the same PC from a net browsing center and another person may use it later from same IP. In that case click of one person is valid and another is invalid?
and if google doesn't track IP then how does it know that we are not clicking our own ads? I mean we can always sign out of blogger and view our own blog as a external person and start clicking our ads. Well i did this couple of times.
lastly can you please visit my blog and give some suggestions.
http://ourabstractthoughts.blogspot.com/
Thanks
Neo
1. If you have implemented Adsense ads into all four blogs without creating channels, the statistics shown in the report is the total one. That's why you are encouraged to use channels to specify each ad unit.
2. You have some misconceptions. Neither CPM ads or CPC ads has its own column in the report page. Do you mean the eCPM column? Also, no matter it is a text ad or image ad, there is no indication that it must be a CPC or CPM ads. Text ad can be CPC or CPM ads, and so as image ad. Tbe highest bidder (CPC/CPM ad) will automatically be displayed in your blog(s).
3. Google has many ways to track invalid clicks, an IP address is only one of them. I have written a post on this matter, please read here. On the other hand, if you clicked your ad accidentally, you are required to report it to Google as soon as possible.
4. Your site is talking about Matrix, and the black does fit your topic, but yet you should always blend the ad with the background too.
Hi ad decoder
Thanks for your suggestions. Again my curious mind asks you for more if you don't mind.
1. Like i said i have 4 different blogs and one adsense account which shows the same report. If i create channels to specify each ad unit then i am afraid i would never reach to make the minimum 100$ required with very less traffic.
2. Yes i said about eCPM report column. I did some changes to get only text ads and surprisingly there's a big shoot up in the earnings in the past 2 days.
and what is this eCPM column mean?
Thanks for your patience
Neo
Hi Neo,
1. Giving each ad unit a channel has nothing to do with the earning. If you specify an ad with a channel, the earning will not be affected. The time to reach $100 is still the same.
2. For information on eCPM, please refer to my previous post.
I will be grateful if you can provide a backlink to my blog.
Thank you, this is the first explanation I have seen as to the question I needed an answer to.
But I have a new template I downloaded with a header banner for ads. The ads are being clicked. Clicks show up in my reports, but no earnings are reported.
There is more than one advertiser that appears in the banner. I in fact have two different Adsense ads. Clicks reported for both but no earnings. It is a new site began several weeks ago.
What causes this. I'm pretty sure there are no invalid clicks.
http://homemademoney4u.blogspot.com
You explained very nicely.
Also, I wonder if you explained it only on google adsense? Are all the they same like adsense?
Hi Vannessa,
I am sorry to miss your comment.
Hi shafi,
Yes, Google Adsense offers both CPC and CPM ads, and there are also some other companies which also offer both of them.
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