Adsense Cost-Per-Click & How To Determine Yours

Most of you are very familiar with the terms Cost-Per-Click or CPC for short. It is a term that is extremely prolific in the internet marketing world, for both advertisers and publishers. However, most publishers do not think about how CPC is going to affect their Adsense account. Because of this many new marketers unknowingly develop a website for a niche that turns out to be low-paying.

So how does one determine if a keyword will be profitable enough for them–by using a variety of tools available from Google. It is actually quite easy to determine a rough estimate of what your average CPC will be. You will first want to load up the Google Adwords Traffic Estimator. Once that is done, enter the captcha and then enter the keyword or keyword phrase in question into the box in the upper left hand corner.

It is important that you have already chosen your keyword using another program, whether that be Market Samurai or the Adwords External Keyword tool. This is because the Traffic Estimator is only going to give you search volume for your local area, so it is good to remember to only use this tool to find the potential CPC of a keyword.

In this example we are going to use the keyword: make money online. As you can see in the screen shot below, at the time of running this search the Estimated Average Cost-Per-Click (CPC) is $2.20.

adsense-cpc

It is important to keep in mind that this number usually reflects the content network only. So how do I figure out what the CPC will be on the search network? Well you could start an Adwords campaign and it would tell you, but the easiest way is to just do a search for your keyword in the Google search engine. If the search results are filled with advertisements you can definitely bet the CPC for the search network is going to be nearly the same price as the content network, sometimes much greater.

So how do I figure out what my revenue take will be?

Google recently announced in 2010 that it shares 68% of its Adwords revenue with publishers. This means that for every click you accrue on your website you will be paid 68% of what the advertiser paid to Google to run the advertisement. An easy way to understand would be:

CPC x 68% = Your Cut

So in this case, you would be getting 68% of an average $2.20 CPC giving you a $1.496 per click on average for running those ads on your website. Now of course this is just an average, and it is very likely that you will be paid less for clicks. Why? Because if an advertiser pays Google a lower CPC to run the advertisement you will also get a lower payment.

This is why  it is important to factor Cost-Per-Click into your keyword research. By doing this you are allowing yourself to get a better idea of how profitable a certain niche will be when running Adsense Ads.


3 Responses to “Adsense Cost-Per-Click & How To Determine Yours”

  1. Gareth says:

    Update: – I stand corrected… this comes DIRECTLY from google adsense help centre

    https://www.google.com/adsense/support/bin/answer.py?hl=en&answer=32859

    For displaying ads with AdSense for content, publishers receive 68% of the amount Google collects from advertisers. For AdSense for search, publishers receive 51% of the amount collected from advertisers. These percentages are consistent, regardless of a publisher’s geographic location, and are not in any way averaged between publishers. We don’t disclose the revenue share for other AdSense products; the revenue share varies for other products due to different costs of developing and supporting these products.

    We believe our revenue share is extremely competitive. However, revenue shares alone can be misleading, so we encourage you to focus on the total revenue generated for your site. For example, if the Google ads on your site generate $100, with our 68% revenue share you’d receive $68 through AdSense. Another ad network might offer an 80% revenue share, but only collect $50 from advertisers, so you’d receive $40.

    With the vast number of advertisers competing to appear on AdSense sites, our system ensures that you’re earning the most possible for every ad impression you receive.

  2. Gareth says:

    the 68% is misleading. as most of goolges ppc income comes from affiliate partners AOL, ask.com and a few other BIG players. Google doesn’t reveal the size of those contracts, and nor should it as it’s commercially sensitive. My best guess is they pay these folks up to 80% of the search revenue, and for everyone else using adsense they pay somewhere closer to 12.5% – 20%. I can’t figure out the exact amount, but that is my best guess.

    Don’t get suckered into thinking you can earn 68% per click on adsense, as it simply is not true.

    A well optimised site can get upwards of a 10% Click through rate. (Which is what I get)… once optimised, then it is about generating traffic. The more traffic, the more you earn.

    However… rather than flogging a niche it is much better to just write websites about things you’re pationate about. forget about high paying words like insurance, forex, property, banking etc… if you’re pationate about flowers, then write a site about flowers… monetise it, optimise your adsense, and keep blogging or writing pages about the topic you love! – it’s far more rewarding.

    my site is http://www.classicspeeches.com if you’re interested to see an example of a site optimised for adsense.

    G

  3. Tom says:

    I have heard that mid-size website owners on average gets about US$100 – US$300 from AdSense. Not very motivating especially if you are just starting a new site.

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