A near perfect estimate of what to expect in Pay per Click (PPC) ads earnings

For those who are looking forward to monetizing their blogs or websites with any of the available Pay per Click (PPC) ads network and don’t really know what to expect in terms of their earnings, then this article will guide you properly by providing to you a near perfect estimates of various things you need to know concerning PPC ads and most importantly what your earnings will look like and also the major parameters that determines these earnings.

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For now, you might be planning to monetize your blog/website with PPC ads network providers like Adsense, Media ads, Smowtion, Addynamo, Bidvertisers etc. 

So even before doing that, I believe it will pay you better to understand how they work and also to know what your income or earnings from them will actually look like when you eventually place them on your blog/website. 

I also believe that getting this knowledge at hand will even give you a head on start to monetizing your blog/websites with them, thereby giving you total control of what you are about to venture into. 

It will also prepare you to know if they pay or earnings will be good enough for you and also to know whether you can cope with it even before making use of them.

Since we are mostly discussing on PPC ads networks, I want you to first of all know about these two major determinant factors of how your earnings will most likely turn out to be. The factors are Cost per Click (CPC) and Click through Rate (CTR).

In terms of your earnings with those PPC ads networks providers, what this simply means is that for you to be earning big from them, you need to have both high CPC and CTR.

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CPC – as the name implies, it is simply the cost that these PPC ads networks providers are willing to pay you for each click that you received from those ads you placed on your blog/website as a publisher. CPC you get from those PPC ads networks is being determined by lot of factors, which ranges from geographical location to certain performing keywords and also to numbers of advertisers and what these advertisers are paying to the PPC ads networks providers.

Some geographical locations, mostly the US attract higher CPC. Other countries of the world that attracts high CPC are Canada, UK, Australia, France etc. meaning that if you have more of your blog/website visitors coming from those locations and if they are clicking on your ads, you most likely will be receiving high CPC.

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On the part of keywords, there are certain keywords that attracts higher CPC, and this might be as a result of emphasis those advertisers placed on those keywords. That is why as a blogger or webmaster, you are advised to learn SEO to be able to detect does keywords and utilize them well in SEO for your own gain.

Then talking about how Advertisers influences CPC, be rest assured that more advertisers and advertisers that pays high will definitely attract high CPC to publishers participating in the PPC ads network. This is simply because if advertisers pay the PPC ads network providers high, they will be willing to give their publishers higher CPC on those ads. This is the simple reason why AdSense pay higher than most of their competitors.

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CTR – This is the percentage of people that are likely to click on your ads, and this is simply how it works; the more people viewing your ads, the more likelihood that they will click your ads. There is one thing that you ought to know about CTR. It is good to have a high CTR for better earning, but what is being considered as high CTR here might just be the opposite of what is right in your mind. 

Your CTR is something that should be limited in the sense that from researches and professional studies it has been found that it is actually small percentage of people from the total numbers viewing your ads find them interesting and click on them. For example, you don’t expect 100 people to view your ads and 50 of them to click on them (50% CTR). 

Even CTR of 10% is on the high side. When these kinds of 10%, 20%, 30% etc. CTR are recorded on an account participating in the PPC ads networks, those ads network providers tend to see them as invalid activities and such account risk penalization.

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So in our own words and in the real sense of high CTR, 1% to 2% CTR is considered as moderate, meaning if you have 1000 people viewing your pages and ads, 20 of them clicking your ads (2% CTR) is seen as high performing ads. On the average, we look at 1% to 3% CTR on your ads.

Now considering the average of 2% CTR, what it implies is that if 1000 people view your ads, you should expect 20 of them to click on them. 

So now if you want to know what your earnings will look like, depending on your CPC which we have highlighted above with its determinant factors, 2% CTR at any given time multiplied by CPC at that given time multiply by the total numbers of people viewing your ads, gives you a near perfect estimate of what your earnings will look like at that same period.

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For full figure example, taking an average of 2% CTR and an average of $0.10 CPC, and if 1000 people viewed your ads in a day, with those parameters, you should have;

2% X $0.10 X 1000 = $2 earnings

What you just received above is a near perfect earnings obtainable from these PPC ads network providers and so for you to earn big or reasonable from them, you need to have volumes of people viewing the ads on your blog/websites on a daily basis, let say from 10,000 daily page views and above. 

Then if by any means, you are receiving daily page views of 100,000 to 1,000,000, in all ramifications, you should be smiling big monthly to the bank for a fat income from those PPC ads networks.