Today, we will cover valuable metrics that publishers can utilize to understand their performance better, known as RPM. RPM is the revenue per thousand impressions and includes additional subcategories.
These are page RPM (page revenue per thousand impressions) and session RPM (session revenue per thousand impressions). With this article, you’ll be able to understand the purpose of each type of RPM and how it helps you monitor and grow your overall website earnings.
Also, find out more about the difference between page views and impressions here: https://www.monetizemore.com/blog/google-analytics-pageview-vs-dfp-impressions/
RPM is a common metric that most advertising platforms such as ad networks and ad servers use. It represents the cost that the advertiser will have to pay for every 1,000 ad impressions served on a publisher’s website.
To calculate the RPM, we need to divide the Revenue by Ad Impressions and multiply it by 1,000 using the formula below.
RPM = ( Revenue / Impressions ) x 1,000
Let’s say we want to calculate the RPM for Oct 18, 2018. The site earned an estimated $133.04 for 104,752 ad impressions.
RPM = ( 133.04 ÷ 104,752 ) x 1,000
RPM = $1.27
This indicates that for every 1,000 ad impressions served on a publisher’s website they earn $1.27.
From a publisher’s point of view, this is a good metric to look at, but not the best to define the performance of a site. There’s a big possibility that even if the RPM increases, the overall site revenue could be inversely proportional to it.
However, since RPM is the total amount of all CPMs on a specific page, therefore, it’s a good performance indicator for different ad types on a page.
The page RPM metric helps publishers understand the performance of their ads on a page level. This way you can identify low earning pages and strategize how to improve their performance.
Page RPM is the rate that the advertiser has to pay for every 1,000 ad impressions viewed per page. You can calculate RPM by dividing your estimated earnings by the number of page views and then multiply it by 1,000.
Page RPM = ( Revenue / Number of page views) x 1,000
To better understand it, let’s calculate the page RPM for Oct 22, 2018.
Estimated earnings = CA$191.93
Page views = 419,470
Page RPM = ( 191.93 ÷ 419,470 ) x 1,000
Page RPM = CA$ 0.46
For every 1000 impressions this particular page of the publisher’s website received, they earned $0.46 in ad revenue.
Page RPM is an excellent comparative metric to evaluate multiple page performance on your website. It gives you an appreciation of what’s going on with your pages regarding revenue at any comparable period, page to page, etc.
Take note that an increase in page RPM results in an increase in the total revenue of the website.
Out of the three metrics we covered here, session RPM is the best metric to reference when analyzing overall site performance. This metric directly shows a site’s ad earnings per visitor. It also gives you a better understanding of which landing pages gain revenue the most.
To calculate session RPM, divide your earnings by visitor sessions, and then multiply them by 1,000 which corresponds to one thousand visits to your website.
Session RPM = ( Revenue / Number of ad sessions) x 1,000
Let’s say we want to calculate the Session RPM for Oct 20, 2018. 54,403 ad sessions generated $120.68 in estimated earnings.
Session RPM = ( 120.68 ÷ 54,403) x 1,000
Session RPM = $2.22
Each metric we covered here has its use in monitoring site performance. If you want to check the performance of different ad types on a page, then you may utilize the RPM metric.
If you want to evaluate your site performance at the page level, then use page RPM. If you’re going to assess the overall performance of your site, then use the session RPM metric.
With all the metrics discussed, session RPM is the best parameter that allows publishers to gauge the overall performance of a site. This metric shows you how well or how good a site’s ad earnings are per visitor.
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