How AdSense Revenue is Calculated
Understanding how Google AdSense calculates your earnings is the first step to increasing them. The formula relies on three main variables: **Traffic**, **CTR**, and **CPC**.
The Formula
The basic math behind your earnings is simple:
Revenue = (Daily Page Views × CTR%) × CPC
- Page Views: The number of times a page with ads is loaded.
- CTR (Click-Through Rate): The percentage of visitors who actually click on an ad. (e.g., 1 click per 100 views = 1% CTR).
- CPC (Cost Per Click): The amount an advertiser pays for that single click.
Key Factors Affecting Your Earnings
Why do some sites earn $50/day with 1,000 visitors while others earn $1? It comes down to these factors:
1. Niche (Industry)
Advertisers pay more for customers in "high-value" industries. A click on a **Car Insurance** ad might be worth $10.00, while a click on a **Funny Cat Video** ad might be worth $0.05.
| High Paying Niches | Average Paying Niches | Low Paying Niches |
|---|---|---|
| Insurance, Loans, Legal | Tech, Health, Home Improvement | News, Viral/Humor, Gaming |
| $2.00 - $15.00+ CPC | $0.50 - $2.00 CPC | $0.01 - $0.10 CPC |
2. Geolocation
Traffic from "Tier 1" countries (USA, UK, Canada, Australia) is more valuable to advertisers because these users typically have higher purchasing power. Traffic from developing nations generally yields a lower CPC.
3. Ad Placement
Where you put your ads matters. Ads placed **above the fold** (visible without scrolling) or within the content usually get a higher CTR than ads buried in the footer.
What is RPM?
**RPM** stands for **Revenue Per Mille** (Mille means 1,000). It represents how much revenue you earn for every 1,000 page views.
Formula: (Total Earnings / Number of Page Views) * 1,000
This is the best metric to compare the performance of different pages or days, regardless of traffic volume.
Tips to Increase AdSense Revenue
- Target Long-Tail Keywords: Write content about specific problems (e.g., "Best CRM software for small business") rather than generic topics.
- Optimize for Mobile: Most traffic is mobile. Ensure your ads look good on small screens using Responsive Ad Units.
- Speed Up Your Site: If your site loads slowly, ads load slowly. Users will scroll past them or leave before they see them.
- Experiment with Ad Types: Try different sizes (300x250, 728x90) and formats (Display, In-Article, Vignette) to see what your users engage with.