Analyzed: How Much Money Do I Stand To Make With Google AdSense Overtime?

This is an interesting things you may like to know while planning on venturing into online money making business with content creation.
 
It’s obvious why anyone will like to know, in detail, how to make money online. When I talk to people about blogging the first question that comes up is “How much money do I stand to make with Google AdSense” or something similar; little do they know that there can be almost nothing involved (if you are good at what you intended to do) or much involved.

There might be other ways of making money online. But let’s take Google AdSense and shred it into pieces that any grade student can comprehend.

If you have Google AdSense account, its most likely that you have seen some wired acronyms which am about to explain.

Successful people are only those who understood the system.

I will make my illustration with one single ad block. Assuming there is only an ad block meant for your site (it’s not usually that way but for the reason of this explanation, for understanding purpose).

CPM (Cost Per 1000 iMpression): advertisers pay certain amount $$ for 1,000 iMpression or views.

For example: let’s assume there is only one ad block available for your site and your site only, if the ads’ CPM is $3.00 you will make 3/1000 X ad_views on that single ad block i.e. $3 Divided by 1000 Times ad_views (number of time the ad block showed up on your site aka iMpressions).

Assuming we are sure your single ad block will show up whenever your site loads. If you had 400 page views (iMpressions), you'll be making:

$CPM = 3 / 1000 X 400
$CPM = 1.2

For CPM: more view = more revenue.

CTR (Click through Rate): is the total number of clicks, on your ads, divided by each ads’ iMpression. For example, you will get 1 iMpression whenever your single ad (the one we are experimenting on) is viewed. And on that single view there was 1 click on the ad, your CTR is

CTR = Clicks / Ad iMpression X 100 %
CTR = 1 / 1 X 100 %
CTR = 100%

This is impossible, it means whenever your page is viewed your ads were clicked. It seems malicious, Google records that as invalid click and, as a matter of fact, consider your account banned :(

The lower your CTR the better.

The lowest is CTR is around 1 / 100 X 100  = 1%  (For each 100 views you had a click).

CPC (Cost Per Click): The amount you earn whenever your ad is clicked.

For CPC: more click = more revenue.

Here comes an answer to the question; Let’s see how much you can make with AdSense in 30 days

For CPC

Let’s assume you have 1% CTR (which is very low. Some people have 20%).

If the average CPC (for CPC-based) ad that was served to your site was $0.25, and you had an average of 400 clicks a day, you will be making $0.25 X 400 = $100/day

This means you had a total of, say, 400% CTR on 1% CTR interval which interprets to 4000 page views/day.

If you maintain this for 30 days you’ll be making $100 X 30 = $300.00.

Visit my tool to see how much you are making http://www.logicant.com/adsense-calculator/

For CPM

If the average CPM (for CPM based) ad that was served to your site was $1.25, and you had 4000 page views/day, you'll be making:

$Revenue = 1.25 / 1000 X 5000 in a single day
$Revenue = 6.25 in a single day

If you maintain this for 1 Month (say a 30days) you will be making 6.25 X 30 = $187.5

Visit my tool to see how much you are making http://www.logicant.com/adsense-calculator/

Note: you earnings are based on CPC and CPM because some ads are CPM-based while other are CPC-based, and you are lucky because they both show up on your site.

Anyone that has something to do with money won’t be ignorant of how to deal with people.

Hope you understood the system and how it works (If you didn't it in a single reading, go over it again and again until its part of you). Its just as simple as ABC, The more traffic you get, to your site or blog, the more your income revenue. And to get much traffic that can earn you much you'll have stick your fingers to your keyboard and make some sense.