Publishers' eCPM

So far in this online course we have looked at how the position in your tower and the click price of the adverts is determined by Google. Now, we'll look at how this generates earnings for you and how it affects your eCPM numbers in your Adsense reports.

The income you get from the tower block is the sum of all the values of each click, less Google's share. That is, it is calculated using the following formula:

To illustrate how this appears in your Adsense Report, let us suppose that:

• you have one page at your site, which has been viewed 50 times since you added the Adsense tower
• one reader clicked on Kim's 34c ad
• another reader clicked on Joe's 13c ad
• Google kept 30% of the revenue for themselves and gave 70% to you (this is for this example only: the actual percentage you'll be paid on your site is unknown).

In this example, your earnings are:

Your eCPM is a derived number: the rate of earnings per thousand impressions. It is calculated as:

In this example, your eCPM is:

Your Adsense report statistics would therefore look like this:

If you want further explanation of these numbers, read our Adsense Report Explanation. If you understand the report figures already, then skip to the next article on the use of Adsense statistics to analyse page and site performance.

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