Comparing Apples to Oranges with Google AdSense CPM
Publishers are often striving to optimize their earning potential, and they face difficult choices while evaluating different ad network partners. If they’re considering the possibility of joining a premium ad network, or evaluating the performance of the networks they’re currently using, it’s critical that they compare performance metrics consistently across networks. If they have to make “apples to oranges” comparisons, they may form an inaccurate perception of which network is delivering real value for them.
Of all the performance metrics they’re likely to compare, eCPM (effective cost per thousand impressions) is perhaps the most important. But which eCPM measure are they using? The industry standard practice, shared among virtually all ad networks and ad industry associations, is to use Ad eCPM. For example, if a publisher has an Ad eCPM of $1.00, they’re making an average of $1.00 for every 1,000 times an ad is displayed on their site.
Here’s the challenge: the popular remnant ad network AdSense uses a different metric that they have named Page eCPM. This metric calculates a publisher’s revenue based on the sum value generated by all the ads they have on a given page.
If a publisher’s site has more than one ad per page (as most sites do), their Page eCPM will always be higher than their Ad eCPM. In fact, the non-standard Page eCPM metric typically runs 100% to 200% higher than the widely-accepted Ad eCPM metric. Thus, if the publisher is using AdSense to monetize their leftover inventory, they should be careful when they compare. They may get an inflated perception of how AdSense has been performing for them.
How can a publisher get an accurate understanding of their true AdSense eCPM? There is a way to find Ad eCPM in the AdSense interface, but it requires a little digging in the data. Here’s a hint: it can’t be found in the Account Overview.
The publisher should log into AdSense and click on Advanced Reports, under the Reports tab. Down the left side of the screen, they will see “Show Data By”. Below it, they should open the drop-down menu and select “Individual Ad”. From there, they can adjust the date range and other preferences, and then click “Display Report”. The resulting report will show Ad eCPM in the second-to-right column.
It can indeed be disappointing to view the true remnant eCPM, compared with the eCPM a publisher thought they were earning with AdSense. But there’s no reason to despair. AdSense is a very efficient seller of last resort. There’s no reason not to continue using AdSense, or another remnant network, to monetize leftover inventory. But publishers deserve the opportunity to participate in high-eCPM buys from brand advertisers too. An Adify-powered premium vertical network can bring that opportunity.