Understanding Ads – Google AdSense Lingo | MyRevenueResource - Everything You Need To Know, To Start Making Money Online

Understanding Ads – Google AdSense Lingo

On 06.15.09, In Ad Terminology, Google AdSense, by Tim

The world of advertising has some terminology that we should start to get familiar with and so does Google AdSense. Let’s get familiar with some words before we create our first ad.

Hello there! If you are new here, you might want to subscribe to the RSS feed for updates on this topic.

The world of advertising has some terminology that we should start to get familiar with and so does Google AdSense. Let’s get familiar with some words before we create our first ad. The below resource is only a tiny part of a full AdSense Resource Library where you can look up common words and their meaning.

Banner Unit – A Banner Unit is a graphic image used on Web sites to advertise a product or service. Banner ads come in numerous sizes such as 300×250 Message Units, 728×90 Leaderboards and 160×600 Super Sky Scrapers. A banner can be any size you want, but there are some industry standards, and some Google AdSense standards which can be used.

Impression – The point in which a banner is shown once to a visito. Example: If you go to a website and you see an ad for the Apple iPhone, that banner has delivered 1 impression. Impressions are usually sold in bulk.

CTR – This stands for Click through Rate. What that is, is a formula to determine a percentage of how your banners are performing. To determine a CTR you take the total number of impressions and divide it by the total number of clicks. Example: 1,000 impressions / 100 clicks = 10% CTR

CPM – Cost Per Thousand. But wait, the last letter is an M, not a T..Actually, the letter M in roman numerals stands for Thousands, so that’s where that comes from. Example: Let’s say you wanted to display your banner 50,000 times on a website. The publisher would say, ok cool, the CPM is $5.00. What that means, is that for every 1,000 impressions there are, the charge is $5.00. So, in total that 50,000 buy would be $5.00 x 50 and would = $250. So for 50,000 banner impressions there would be a charge of $250.00 to the advertiser. The good part about this is, Google AdSense does all the math automatically so you don’t even need to touch anything along these lines.

eCPM – or Effective Cost Per Thousand. From a publisher’s perspective, the effective cost-per-thousand impressions (eCPM) is a useful way to compare revenue across different channels and advertising programs. It is calculated by dividing total earnings by the number of impressions in thousands. For example, if a publisher earned $180 from 45,000 impressions, the eCPM would equal $180/45, or $4.00. However, please keep in mind that eCPM is a reporting feature that does not represent the actual amount paid to a publisher.

TIP: When you think you are ready, take the MyRevenueResouce Ad Terminology Quiz. It will help you improve your skills to make more money online, quicker than ever.

These words above are very common in the control panel, and are imperative to know for success and generation of revenue. By knowing these words, and what is good, opposed to what is bad, you can really make the most money out of this program.

This is only scratching the surface of Google AdSense terminology. But, it will definitely give you someplace to start. You can always check out our Google AdSense Resource Library for a much more in depth list of advertising terms and resources.

Next Lesson: Creating Your First Google AdSense Ad

Previous Lesson: Getting Familiar With The AdSense Control Panel