eCPM Depends on Content, CTR Depends on Layout
As I talk to other bloggers running Google Adsense, they mention how their eCPM (effective Cost Per Thousand impressions) increased with the introduction of a new layout or optimization idea, not realizing that eCPM isn’t really affected by that.
Effective Cost per Thousand impressions (eCPM) is directly related to the content of the advertisements being displayed by your contextual block - if you write about blue widgets, you’ll see blue widgets. If you write about structured settlements, you’ll see advertisements about structured settlements. When you write about mesothelioma, your eCPM (if people click on the ads) will be higher than if you wrote about structured settlements, which will be higher than if you wrote about blue widgets. The content of your site, and this is why niche selection is crucial if you’re in it for the money, is what will dictate your eCPM - not your layout.
Clickthrough Rate (CTR) depends on a whole host of factors, one of which is layout. If you remove visual impediments between your content and the ad (blending), then you’ll see your CTR increase. When it was permitted, people put images next to the ads because it drew the attention of the reader who would then be enticed by the ads. By making layout changes, you affect CTR.
Increasing your eCPM may have a negative effect on your CTR (people visiting your site for blue widgets will start to see advertisements for mesothelioma, which they don’t care about, so they don’t click) so don’t devote your time to increasing your eCPM. Likewise, layout decisions could increase CTR but lower your ultimate revenue number. If you have three blocks per page and drop it down to one block, you will likely see a CTR increase but an overall revenue decrease because the number of clicks will fall. This may have different benefits down the road but in the short term (which is a bad way of thinking about things) it may not be the right move.
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I just wanted to let you know I copied a paragraph from you. I put a link back to you for credit.
tecbrat.blogspot.com
Comment by TecBrat — November 6, 2007 @ 8:39 am