Wednesday, November 01, 2006

Monitoring CPC Revenue

An important job for a webmaster who is running a commerical website and is utilising pay-per-click (PPC) or cost-per-click (CPC) advertising on their site to generate an income is working out how to maximise their revenue.

Total revenue can be effected by a number of different factors, and in order to maximise your revenue it is important to consider all of them.
  • The average CPC value of the ads
  • The effectiveness of the ads targeting towards your content
  • The amount of traffic your site receives AND
  • Your click-through ratio.
You should be keeping track of these as often as possible, perhaps even on a daily basis. Many of these statistics may be able to be provided from the site which is serving the advertising, however the effectiveness of the ad targeting can only be judged by human eyes.

If you don't have figures for the amount of traffic your site is receiving, shame on you. You can either choose to use the total number of ad impressions you have delivered in a period divided by the number of ad formats you have on each page, or you can incorporate external tracking and compare this with the number of ad impressions you deliver.

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