How to Calculate Your Google AdSense Earning?

Do you ever wondered how much I can earn from Google AdSense? When I started displaying Google AdSense at my blog I wondered that how much would I earn from it. The answer to this question is very subjective and it depend on what techniques you use to make money. You can really make a great amount of money per month if you use good keywords to create content and get traffic.

Basically, your earnings from Google AdSense is solely depends on keywords, CPC, eCPM, and traffic:

i) Keywords are the words or terms that people search in the search engines. Certain keywords are higher in earnings, which may be worth $35, and another may be worth $5.

ii) CPC is the cost per click that the advertisers pay you.

iii) eCPM means effective cost per 1000 impressions.

iv) Traffic is the visitors that come to your blog or website.

These are the formulas to calculate your earning:

CTR(Click Thru Rate) = Clicks/Impressions x 100. So, it is the number of times user clicks on an online advertisement per number of viewers who view your site.

eCPM = CTR x CPC x 10

For example, let say you have 50 clicks/2000 impressions x 100, then your CTR is equal to 2.5.

Assume CPC(cost per click) = US$0.15

eCPM = 2.5 x $0.15 x 10
= $3.75

Based on my analysis, if your eCPM higher, then your earning will be higher as well.

So, if your website get listed on the top page of the Google Search Engines, then you will surely get some clicks. Google measures the importance and relevance of your page such as Page Rank, how old is your page, the traffic and etc. If your page is relevant for Google, they will pay you more.

Besides that, your content is also important. For those site which more specialized in a particular content, for example, IT gadget, the possibility that people click on a technology advertisement is greater, so the price that Google will pay you its higher. If your content more towards personal, general or mix with a lot of different things, then the sale will be less probably, and the click will be a low price.