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There are so many terms related to the advertising industry. Some are industry-wide or universally used by all advertising platforms. While there are some industry specific terms too used and created by certain specific industries for their ease of work.
Today in this FAQ article we are going to explain the basic difference between the two most popular AdMense CPM and RPM terms.
What is the difference between AdSense CPM and RPM?
Advertisers define the CPC (cost per click) and CPM (cost per 1000 impressions) price they want to pay for your ad space. Understanding the CPC is quite simple because it is the price an advertiser pays each time a user clicks on an ad. But when it comes to impression-based compensation, AdSense doesn’t use CPM in its reports. Why?
Since ads are not displayed in even batches of 1000 impressions, all impressions served on your site, regardless of the type of auction, are combined and averaged in your reports to display your effective RPM (earnings per 1000 impressions).
CPM is an industry-wide term that refers to auctions based on the impressions of advertisers. While, RPM is an AdSense-only term used to report your actual earnings based on impressions.