Google AdSense is perhaps the most popular way to make money online but does it really work?
The majority of Internet users are probably aware of Google AdSense but for the sake of keeping beginners up-to-date here is an insight: A lot of websites do make a lot of money despite not having enough traffic and a lot of other sites fail to make a decent amount of money even after having a lot of traffic.
Why? Well, the answer lies in understanding these two terms, i.e. CPC and CTR.
What is CPC?
The cost-per-click (CPC) is the amount you earn each time a user clicks on your ad. The CPC for any ad is determined by the advertiser; some advertisers may be willing to pay more per click than others, depending on what they’re advertising.
What is CTR?
Click through rate (CTR) indicates the probability of an ad click with respect to the overall ad impression. The click through rate (CTR) is the percentage of impressions that led to a click. If 1000 people visited your blog and 15 visitors clicked on some ad, then CTR = (15/1000)*100 = 1.5%
CTR = [Clicks / Impressions] *100
How do CPC and CTR affect your AdSense earnings?
If you are looking to earn $100,000/ year through AdSense, then do you know how much traffic your blog needs? Let’s analyze two cases:
In the above mentioned cases, one can see the numbers marked in bold Red, in Case I you need ~100k pages view and in Case II you only need ~1k views to accomplish the same goal $100,000/ year in AdSense Earnings.
So, the more your CPC and CTR are , the more are your earnings. There are some techniques that you can use to increase your CPC and CTR.
Best Ways to Increase Google Adsense Earnings
1. How to Increase your CTR
Page CTR is a very Important factor to understand the performance of a website. The Average CTR ranges from 1% to 5%. The idea is to maximize view-ability and engagement with your ads. To receive a higher CTR, one should focus mainly on two things:
Placement of Ads
- Keep practicing the best placements for the ad-units so that they have the highest CTR.
- Play around with the colors of the text-ad units and use whichever brings the highest quality of clicks and CTR.
Relevance of your Content and Your Ads
- Google AdSense delivers ads based on the content. If your content is limited, Adsense may have difficulty identifying the information on the page. As a result, you may see ads that are not directly relevant to your page.
2. How to increase CPC ?
The Value of CPC depends on many factors. Some key factors to consider are as follows:
The adsense CPC that you get paid will depend on the topics that you write about.
For Example, CPC is higher in Technology related Niches as compared to Beauty or Entertainment related Niches. More competitive Niches have higher CPC’s.
When AdSense cannot find a matching keyword for ads on your page, you should expect low AdSense CPC.
- Try to use High CPC Keywords (don’t spam).
- Try to keep your article SEO optimized using the High CPC Keywords.
Certain Ad categories have low CPC, so you can go in your Adsense account and block those categories. As a result, AdSense will not show Ads from those Categories, and this will, in turn, increase your site’s CPC.
- Block low CPC Ad Categories
Traffic from low CPC country
If your traffic sources are from countries like Nigeria or Bangladesh, expect a low AdSense CPC because most often, users from these countries do not convert.
- Try to target US, UK, CA and AU.
You can find out more details about Google AdSense in the AdSense Help Center.