What is RPM?
RPM (Revenue Per Mille) measures how much money you earn for every 1,000 visitors or page views on your website. It is a key metric in online advertising that tells you how profitable your site is. A higher RPM means more revenue per visitor without needing to increase traffic.
How to Calculate RPM
[\text{RPM} = \frac{\text{Total Revenue}}{\text{Total Views}} \times 1{,}000]
Where:
- Total Revenue is the total earnings generated from ads on your website.
- Total Views is the total number of page views or impressions your site received.
Calculation Example
A website earned 300 in ad revenue from 150,000 views in one month.
[\text{RPM} = \frac{300}{150{,}000} \times 1{,}000 = 2.00]
The RPM is $2.00, meaning the site earns $2.00 for every 1,000 visitors.