If you are monetizing your blog using Google Ads or some other Adsense network , then you must get familiar with some of the most basic terms and definitions related with the pay per click advertising. You might have seen these terms before in your Adsense account. Here is a brief introduction to some of the most commonly used terms.
- Clicks :- A click is just simply a click on the ads of your blog by a visitor. It is the number of clicks your which blog’s ads have received in a given time period. Most of the time , you get paid on the basis of number of clicks on your ads though there are other criteria too.
- Cost-per-Click :- It is the cost that an advertiser pays your for each click on the ads displayed. It depends on the traffic and number of clicks that you receive. CPC keeps on increasing with the increase in traffic and clicks on your blog .
- Impressions :- It is the number of times ads have been displayed or appear on your blog.
- Cost-per-Impression (CPI) :- As is clear from the name itself , it is the cost that you have to pay or you get paid per impression of the ads on your blog.
- Cost-per-Thousand Impressions (CPM) :- Generally CPM is used in place of CPI . Is the cost for per 1,000 impressions of the ads. For example , if the cost is $20 CPM , then the cost for 1000 impressions of the ads is $20.
- Click-through Rate (CTR) :– It is the total number of clicks on your blog divided by the total number of impressions . Generally a higher CTR indicates that a visitor is more likely to click on the ads. Higher the CTR , higher are your earnings .
- Cost-per-Action (CPA) :- Cost per Action is a sum which advertiser pays you when a visitor to your blog clicks on the advertiser’s ads and completes a specific action like buying a product or signing up for some service. Generally , the payout in CPA is much higher like $10 per action completed. It is also known as Pay-per-Action or PPA.