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Formulas and How to Calculate Adsense CPC for Publishers and Advertisers

As a blogger who is a publisher on Adsense, of course you are familiar with the term Cost per Click (CPC). Because, at this CPC they know how much the price per click per ad on their website. So, how do you calculate Adsense CPC?

How to Calculate Adsense CPC and the Formula

In this discussion, we will explain from two sides, first for publishers, second for advertisers. Because, in these two subject areas, CPC is known and becomes commonplace.

Calculating Adsense CPC for Publishers

Basically, CPC adsense in an ad publisher on Google Adsense is calculated on average (average). Automatically, the CPC value is not always ready to click on ads on a website.

The size of this CPC is determined by many aspects, including:
  • Countries that clicked on ads
  • Niche or topic of content on the website
  • Advertising relevance
  • And some other things
Of all the existing clicks, finally calculated into Avg. CPC (Average CPC). Average price per click in a single ad. That way, the CPC formula can be concluded as below:
Avg. CPC = Earnings to date / clicks

So, CPC is not the absolute value of a click. But only an average. If you want to know how to calculate the original Adsense CPC, then you can click 'countries' and calculate according to the formula above.

CPC is one of the most commonly used advertising payment mechanisms by publishers. Although it depends on the number of clicks, this advertising model is much more desirable than Cost per Million (CPM).

Calculating Adsense CPC for Advertisers

In Search Engine Marketing (SEM) strategy, CPC is also a common term. Where, someone has to pay Google Adsense based on the number of people who click on the ads that are displayed.

Therefore, for a businessman, calculating the cost of paying for Google Ads is also important. The CPC formula for advertisers can be written as below:

CPC = Total advertising cost / total clicks

For example, when you spend as much as 10 million for Google Ads ads, and it runs out for 500 clicks, then the CPC you have to pay is:

10 million / 500 = 20,000,-

The concept remains the same, adjusted by the relevance of the click on the ad. The more relevant, the higher the CPC to be paid. So, advertisers are of course vying to be the best in this regard.

Some of the efforts that are often carried out are:
  • Make ads copy as attractive as possible
  • Non-monotonous design
  • High-converting landing pages
  • Organize ad groups well

All these things are done by advertisers so that the ads they pay for get business conversions. Mathematical and analytical models using the CPC formula are often used to conduct audits and evaluations of advertising techniques that have been carried out.

Get to know CTR (Click Through Rate)

In addition to the CPC formula, there is one formula that is familiar from Adsense, namely CTR. It means click-through rate (CTR). In terms, it can be interpreted as the percentage of the amount received by Ad Units with the number of views.

The CTR formula is:

CTR = Number of clicks/ad impressions

Publishers of course want their CTR to be high. Because the higher the CTR/CTR, the bigger their income. However, the best limit for CTR is 8-10%. More than that, potentially banned by the system.

Closing

A little explanation of how to calculate Adsense CPC above hopefully can answer your question. For Advertisers and publishers, CPC is an important Adsense element.

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