Saturday, August 3, 2013

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Basic Google Adwords PPC formulas

   a)     AdRank = Max. CPC x Quality Score

     b)      CTR = ( no of clicks / no of impressions) * 100%

Example:
CTR=  ( 12 / 90) * 100 % =  13 %

     c)       Page CTR = Clicks / Page views

Example:

CTR=  ( 12 / 90)  =  0.1333


     d)      CPM = 1000 × CTR × CPC

     e)      CPC = CPM / (1000 × CTR)



a.)    RPM = (Estimated earnings / Number of page views) * 1000

Example :

If you earned an estimated $0.15 from 25 page views, then your page RPM would equal ($0.15 / 25) * 1000 =  $ 6