RPM or Revenue per 1000 impressions is a pretty standard metric used to calculate how much an internet property, e.g. your personal website or blog, makes per 1000 impressions.
It’s a great way to keep a track over how successful you are in monetizing your traffic. However, remember not to compare yourself too much with the others, and try to 1) see this as a way to compete with yourself and get more visitors + more revenue each month and 2) remember that it usually takes time, a lot of effort and a bit of luck to achieve success, as with pretty much anything in life.
RPM and statistics should never be ignored – I’m not a math genius (quite the opposite), but even the smallest numbers can make a big difference!
From a business point of view, RPM is sometimes more important than (page)views
To illustrate the importance of RPM, let’s compare two blogs. Mark’s blog about beer has 25 000 monthly views and RPM of 10.83. Jenny’s blog about slow food has a lot of useful recipes, 10 000 monthly views and RPM of 35.48. In a single month, Mark will earn 270.75 dollars, which great, but it is 84.05 dollars less than what Jenny’s blog post will generate with a lot less views. With 10 000 monthly views and RPM of 35.48 dollars, Jenny will earn 354.8 dollars in a month.
Let’s imagine that the numbers don’t change: in a 12-months period, Jenny has earned over 1000 dollars more than Mark (1008,6 dollars to be precise)!
Numbers are usually not as rounded and both views and RPM variate, but this is just an illustration of how powerful recurring revenue is – 84.05 dollars per month is more than 1000 dollars a year.
How do I calculate my RPM?
RPM or Revenue per 1000 impressions is calculated when you divide estimated earning by the number of page views or impressions you’ve received and then multiply by 1000.
Here is the formula:
RPM = (Estimated earnings / Number of page views) * 1000
RPM is used in different advertising programs, and it is a good way to compare revenue across different channels.
For instance, our publisher Jakob who runs Byggebloggen.dk, a blog focusing on guides for DIY builders used Opinodo platform to almost triple his RPM, using it as a powerful way to monetize traffic alongside Google AdSense.
How can I boost my RPM?
Some other useful tips are combining AdSense with affiliate links, as well as maybe even selling (your) products or services to have more revenue streams.
P.S. You can also read pur post on 4 easy and effective ways to monetize your blog to get more ideas.