If you are looking for what differentiates Ad RPM vs. Page RPM, you have come to the right place. These are valuable metrics that publishers use to analyze their ad performance. However, often, publishers are confused and wonder which of these metrics should be their focus. Let’s first quickly determine how each one is calculated.
Ad RPM or the ad revenue per one thousand impressions, is calculated by dividing your estimated revenue by ad impressions and then multiplying by 1000. See formula below:
Ad RPM = (Estimated earnings / Ad impressions) * 1,000
Page RPM is the rate that the advertiser has to pay for every 1,000 ad impressions viewed per page. It is calculated by dividing your estimated revenue by the number of page views you received and then multiplying by 1,000.
Page RPM = ( Revenue / Number of page views) x 1,000
Ad RPM vs. Page RPM
While these two metrics are quite similar, there is a substantial difference.
Ad RPM tells the publisher the cost that the advertiser will have to pay for every 1,000 ad impressions served on a website, while Page RPM metric helps publishers understand the performance of their ads on a page level.
Page RPM demonstrates the rate that publishers are paid for ad impressions on their web pages and allows them to identify low and high earning pages and strategize how to improve their performance. By using this metric, you can evaluate the performance of multiple pages on your website.
So, the next question is, what is a good RPM?
While this is an excellent question to ask, there is, unfortunately, no generic answer to this question. Several factors determine your page RPM. Here are some to keep in mind:
- Site niche
- Content quality
- General seasonality
- Audience geographics
- Audience demographics
- Audience seasonality
- Topic trends and breaking stories
Higher Page RPM but Lower Ad RPM
One issue that we frequently see with publishers who hadn’t optimized their ad stacks is that upon optimizing their ad stack, their page RPM increases while their ad RPM decreases. Why does this happen? One of the most common scenarios is that publishers with unoptimized systems often have substantial unfilled impressions. Most ad reporting technologies, including Google Ad Manager, do not report these impressions as $0. Instead, they’re not counted at all. So if a publisher has a site with 70% fill at $0.40 ad RPM, we will frequently crank that up to 95%+ fill. If the additional filled impressions average less than $0.40 ad RPM, then the overall ad RPM will fall, even though the site is making more money overall. This is why although ad RPM is useful in ad optimization, it’s usually not a primary KPI for ad optimization.
In most cases, session RPM is the primary KPI for ad optimization. This is because some ad technologies can be so abusive that they reduce the averages pageviews per session, reducing overall session RPM.
Page RPM and Ad RPM form part of a publisher’s arsenal of metrics used to analyze and optimize ad performance. While calculating and understanding these metrics might be easy; implementing the correct strategies to optimize your ad revenue is something entirely different. Don’t leave it up to guesswork! Get the ad optimization experts to optimize your ads and help you maximize your ad revenue. Sign up to MonetizeMore today!