ADSENSE TERMS DEFINITION
Before diving into the exact process, here’s some terminology for better understanding of Google AdSense.
AdSense: AdSense is when you place Google Ads on your website, and when a visitor from your website clicks on an ads, Google pays you 68% of what the advertiser pays them. It’s free to sign up.
CTR: Your ad Click-Through Rate is the number of ad clicks divided by the number of individual ad impressions. Suppose you are showing 3 AdSense ads on every page of your website, 1 page view is equal to 3 ad impressions.
CTR = Clicks / Ad Impressions X 100
Suppose, you get 5 clicks out of 500 ad impressions, your CTR would be 1% (5/500X100).
CPC: Cost Per Click is the revenue you earn each time a visitor clicks on your ad. CPC is determined by the advertisers. In some competitive niches like finance, marketing, online products etc. advertisers may be willing to pay more per click than others.
CPM: CPM means “Cost Per 1000 Impressions.”
Sometimes advertisers opt for CPM ads instead of CPC and set their price for 1000 ad impressions. And they pay each time their ads appear on any website.