There are so many terms related to the Advertising Industry. Some are industry-wide or universally used by every advertising platform. Whereas there are some Industry Specific terms too used and created by some specific industries for their ease of work.
So today in this FAQs (Frequently Asked Questions) article, we are going to explain the basic difference between the two most popular AdSense Terms CPM and RPM.
What’s the difference between AdSense CPM and RPM?
Advertisers set the CPC (Cost-per-click) and CPM (Cost per-1000-impressions) price they want to pay for your Advertisement Space. Understanding CPC is quite easy as it is the price an advertiser pays each time a user clicks an ad. But when it comes to impression-based pay, AdSense doesn’t use CPM in their reporting. Why?
Since advertisements are not displayed in even bundles of 1000-impressions, all impressions served on your site, regardless of the bid type, are combined and averaged in your reporting to show your effective RPM (Revenue per-1000-impressions).
CPM is an industry-wide term that refers to impression-based bids by the advertisers. Whereas, RPM is an AdSense-only term used to report your actual impression-based revenue.
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