Page revenue per thousand impressions (RPM) is one of the key metrics that publishers can monitor and influence, even though they have access to a number of tools to track revenue generation. It’s a crucial metric for identifying problems with advertising effectiveness as well.
RPM is a highly volatile metric, but there are a number of tactics you can use to sway it and determine how much revenue is being generated.
What is Page RPM?
A formula called “page RPM is used to estimate the revenue a web page produces. Google uses the terms interchangeably because they are nearly identical to eCPM, which stands for “effective cost per mille”.
On numerous platforms that make money from display ads, such as desktop, mobile, in-app, and video, eCPM is used.
How to Calculate Page RPM
Page RPM is calculated by multiplying the result by 1000 and dividing your estimated earnings or ad revenue by the total number of page views:
What Influences Page RPM?
1. Click-through rate (CTR)
2. Cost per click (CPC)
This gauges the sum an advertiser is prepared to shell out for a click on an advertisement placed on a publisher’s website. CPC varies according to the ad’s niche, context, and content.
Publishers should make sure that both CTR and CPC are kept as high as possible because improving these two metrics will cause their page RPM to increase.
Publishers have a number of options for improving the efficiency of their advertising space. Here are some of the most effective methods for publishers to raise page RPM.
11 Ways to Increase Page RPM
1. Focus on your content quality
2. Suggest relevant content to maintain user engagement
In order to keep users interested and extend their time on page and across the site, content recommendation engines are designed to offer navigational pathways to related content.
In order to increase the likelihood that a user will click an ad, you should increase the number of page views on your website.
3. Increase site speed and fix technical issues
4. Increase ad viewability
How effective is a commercial that nobody sees? not at all. This metric is being used more frequently by publishers and advertisers to assess ad campaigns. Advertisers are increasingly choosing to only pay for viewable impressions.
The desktop viewability rate is around 50%, according to eMarketer. As a result, almost 50% of advertising budgets are spent on unseen advertisements. Publishers would lose a significant portion of their revenue if the industry overnight changed to only paying for viewable impressions. So, increasing viewability is in everyone’s best interest.
Our research shows a significant relationship between viewability and CPM, so raising viewability will directly affect your page RPM.
One factor that may affect the viewability of advertisements is reducing ad latency (increasing ad loading speed). You can improve your ad placement and layout to make your ad units more viewable.
5. Optimize your ad formats and sizes
By using these ads, you would increase your ads’ CPC, which would lead to a higher page RPM. Additionally, certain ad sizes are more profitable and have higher CPCs than others. Although you should always test different ad sizes to see which one works best for you, in general, wider ad sizes have a higher CPC.
6. Diversify your ad networks
7. Use header bidding
A programmatic advertising technique called header bidding enables you to offer your ad space to various ad networks, which then compete for the right to insert an advertisement into your content.
The best way to increase your advertising revenue is to let ad exchanges compete for placements. You no longer sell your inventory to the largest exchanges, as was the case with the waterfall model of ad selling, but rather to the exchange with the highest bid.
Ad loading times will be shortened by switching from waterfall to header bidding, improving ad viewability and efficacy.
8. Implement ad refresh
You can serve multiple ads to the same user on the same advertising placement by using ad refresh. The current ad is refreshed and replaced with a different ad after a condition is met, which can be time on page, a visitor action, or any other event. Only the ad units that the user is currently viewing should be refreshed. You will increase your page RPM even though the CPM for those impressions will be lower than for the first ad served.
9. Make sure the ads are relevant to your audience
10. Deliver a great user experience for your readers
11. Optimize traffic for quality
Your efforts to increase traffic should not only focus on volume but also on improving traffic quality. Because they found your content to be pertinent to their search query, organic users are frequently of high calibre. You might see a different picture on your site, though, depending on the content. Building a profile of your referral sources and determining which traffic source attracts the most engaged users is the best course of action. Using that profile, you can concentrate your efforts on acquiring traffic from reliable sources. A highly engaged audience will make your site more appealing to advertisers, who will raise their bids for ads there, raising your page RPM.
Why does page RPM change?
Page RPM is an estimated metric, so it’s common for it to fluctuate. Rather than concentrating on daily metric updates, it’s important to track trends and use rolling averages. Give each optimisation enough time to assess its efficacy because it will take some time for any change you make to affect your RPM. Whatever the case, you must constantly test, experiment, analyse, and optimise.
Page RPM is only one aspect of the narrative. For instance, you might experience a drop in page RPM as a result of higher traffic, which would also result in higher overall ad revenue. To get a complete picture of your site’s performance and ways to increase your estimated advertising revenue, combine page RPM with other metrics.
FAQs
What is a Good Page RPM?
What is RPM AdSense?
RPM vs CPM
CPM is an advertiser metric that measures the estimated revenue for 1,000 ad impressions, whereas page RPM is a publisher metric that measures estimated earnings and ad impressions for every thousand page views.
What is Impression RPM?
Impression RPM is simply calculated by multiplying the result by 1000 and dividing the total revenue from ads by the total measured impressions. The only difference between impression RPM and CPM is that impression RPM is used by publishers and focuses primarily on AdSense, whereas CPM is from the perspective of advertisers.