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Wednesday 13 May 2015

What do CTR, EPC, and RPM mean?

In your Sedo account, you’ll see three abbreviations used to describe your domain parking earnings: CTR, EPC, and RPM.



CTR = (Click-through Rate):  This is a ratio (in percentage form) of clicks that a domain receives for the given amount of unique visitors.
For example, if you currently have 100 visitors and 57 clicks, your click-through rate is 57%.

EPC = (Earning per Click):  This is the averaged amount of revenue for each click for a given domain.  This amount is usually between .03 and 1.50 USD, but can be higher depending on the keyword chosen and the advertisement clicked on.
For example, if you receive three clicks and the first two are worth .25 USD and the third is worth .10 USD, your average EPC would .20 USD (click 1 + click 2 + click 3, divided by 3).

RPM = (Revenue per Mille): This is the amount of revenue you are expected to earn for every 1000 visitors based on the current CTR (Click-Through Rate) and EPC (Earnings per Click).  This number will change as the other two factors fluctuate.
For example, if your CTR is 57% and your EPC is .20 USD, your RPM would be 114 USD (1,000 x .57 x .20 = 114); if your EPC changes to .21 USD, your new RPM would be 119.70 USD.  (Note: mille is the Latin prefix for 1,000.)

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