Your AdSense Statistics - How To Understand and Calculate Them

Ok - so you've got a great content web site and you've decided to monetize it with Google AdSense. You place the AdSense Code on your web site and immediately start getting clicks.
Soon after, you decide to visit your account to see just how much money you've made. You get there to view your reports and then - Bamm! It hits you. Just what the heck do all those numbers mean anyway?
Well, worry not my fellow net entrepreneurs. Below is a quick breakdown of those numbers and what they mean in layman's terms.
Page Impressions
Your Page Impressions are simply the number of times your web pages are viewed. Of course, this number only refers to those pages that contain your code for AdSense.
Think of one impression as a display - every single time your web pages are displayed, your impressions go up. It's the same thing. In terms of money, the more impressions or displays you get, the higher the chance you have of making more money.
Clicks
This is the actual number of times that your ads are clicked upon. Thus, each time a visitor to your site clicks on one of your ads, it is recorded as a Click.
Every Page Impression you receive is an opportunity for one of your ads to get clicked. In terms of money, the more Clicks you get - the more money you can make with AdSense.
Page CTR
Your Page CTR refers to your web page's Click Through Rate. Your Page's CTR, or Click Through Rate, is the ratio of the number of Clicks you receive versus the number of your Page Impressions. The number is expressed in a percentage and is calculated by taking your Page Impressions and dividing them by your Clicks (# of Clicks / # of Page Impressions).
For example, if you have 2000 Page Impressions and received 400 Clicks, your Page CTR would be 20%. Now for you math wizards out there; once you have your CTR, you can pretty much figure out your Impressions and Clicks by using some simple mathematics.
Thus, you can figure out your Page Impressions by taking the number of Clicks and dividing it over your CTR (i.e.: # Clicks / CTR%). You can figure out your number of Clicks by taking your Page Impressions and multiplying it by your CTR (i.e.: # Impressions x CTR%).
Ok, moving on...
Page eCPM
This is where things start getting interesting.
Your Page eCPM refers to your Effective (the "e") Cost Per Thousand Impressions (the "CPM"). Yes, I know. "CPM" is not quite an accurate English acronym for "Cost Per Thousand Impressions". The reason is because the acronym uses the Latin for "Thousand"; i.e.: "MIL".
Anyway, Google defines your eCPM for AdSense as "...a useful way to compare revenue across different channels and advertising programs". I won't stray from that definition, however, there might be a better way for you to understand this number. Let me put it to you this way: basically, by the time you reach 1000 Page Impressions, you would have earned the amount stated in the eCPM. Got it?
You calculate the eCPM by taking your earnings and dividing it by the number of Page Impressions you receive in Thousands (i.e.: $Earnings / (Page Impressions / 1000))
To get a good understanding of your eCPM, allow me to illustrate how it's calculated.
Let's say you earned $250 and got 15,000 Page Impressions. Taking the 15,000 and dividing that by 1000 you get 15. Now, taking your $250 in earnings and dividing that by 15 you get $16.67. Thus, your eCPM is $16.67.
Now, remember earlier that I said that by the time you got 1000 Page Impressions you'd earn the amount in your eCPM. Well, if you do a little math, you'd see that for every 1000 impressions you received, you earned the amount in your eCPM ($16.67 x 15 = $250.05).
Earnings
Of all the numbers you'll see in your AdSense account, this by far, is the most fun and easiest to understand. Your Earnings are just that: what you've earned with AdSense. It's how much money you get to put in your pocket. Now, doesn't that sound nice?
But wait. We're not out of the wood just yet.
There is still one more number you need to know about that they don't show in your AdSense account: your Earnings Per Click.
Earnings Per Click
Your Earnings Per Click or EPC is simply the average amount of money you make per Click you receive. It's calculated by taking your Earnings and dividing it by the number of Clicks you get.
For example, if you earn $250 and you received a total of 500 Clicks, then your EPC would be $.50 per Click.
There you have it folks: a quick and easy to understand guide on Google AdSense Statistics. And now that you understand them, your next goal should be to earn more money.
Copyright 2008.
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J. Garces Jr. is an Internet Marketer and avid article writer. You may reprint this article on your site provided you include author's resource box and active links.