What is RPM and Why You Should be Measuring it
RMP is the most important metric in digital marketing because it tells you how well your ads are performing compared to other advertisers who have similar bids and budgets. It's based on the cost-per-click (CPC), which is what you pay when someone clicks on your ad and the revenue it generates.
- What is RPM
- How to calculate RPM
- How to improve your RPM
- Why is it important know and monitor your RPM
- BidRoll can help you implement data-driven advertising and improve your RPM
- Implementing a strategy
- Customer experience
What is RPM?
RPM is the revenue per thousand impressions (RPM). It’s a metric that measures how much revenue you generate from your ads.
RPM is calculated by dividing revenue by impressions. RPM is an important metric to monitor because it shows how effective your ads are, and whether they're generating enough revenue to support the expense of running them. The higher your RPM, the more effective your advertising campaign will be at generating sales or leads.
It's also useful for understanding whether there are certain types of users who aren't converting on the site—if you have low average RPMs among new users but high average RPMs among returning visitors, it may mean that users' needs change once they've visited before; if this happens often enough it could indicate that their interest in what you offer has waned over time (and so would motivate further redesigning/refocusing).
How to calculate RPM
Revenue divided by the cost per click times impressions is the formula for RPM. For example, if you made $100 from your ads and paid $5 per click, and each ad was shown 50 times, your RPM would be:
- $100 / ($5 * 50) = 1.71
This means you make around $1.71 per impression. Not bad! You can use this number to compare against other campaigns or future campaigns to see how much more effective they are than previous ones in terms of generating revenue for every impression.
How to improve your RPM
You can use data to improve your RPM:
Use BidRoll to track and manage the bidding process for your keyword campaigns. BidRoll provides detailed information about the clicks you receive, as well as insight into how much each click costs and where those costs came from. This helps you understand what’s working, what isn’t, and why it is or isn't working (i.e., if an ad doesn’t perform well during a certain time period). With this information in hand, you can make adjustments that boost performance over time—and optimize your ad spend overall.
Why is it important know and monitor your RPM
Your RPM is an indicator of your ad spend, performance and budget. It's a way to measure the overall health of your Ads program. If your RPM is low, you may be leaving money on the table and not achieving the results you're looking for.
It's important to know because:
- You can use it as a planning tool for future campaigns by estimating what amount of spend will be required to meet a certain ROI goal.
- It'll help you determine if there are any problems with underperforming ads or placements in order to improve them so they'll generate higher RPMs in the future (or kill them off).
BidRoll can help you implement data-driven advertising and improve your RPM
BidRoll can help you implement data-driven advertising and improve your RPM. Our platform is a complete solution to help advertisers increase their advertising efficiency and bring in more revenue.
We have developed an algorithm that will automatically optimize the bids on your ads so they are seen by the right people at the right time. This means that we don’t just tell you what bid to use, but also make sure it’s being placed with the best possible campaign structure at all times.
Implementing a strategy
When it comes to implementing a strategy to improve RPM, you need to have an understanding of metrics. You should know what will lead to success and what will lead to failure. The best way to do this is by measuring your customer experience. By using metrics such as growth in sales, profits, and customers acquired, you can determine if these changes are working or not.
When you're implementing your strategy, or any other kind of marketing plan, there are some things you should keep in mind:
- A good strategy is based on data. If your bounce rate is low, it means that readers are engaging with your content and staying on the page longer. That's great—but it may be less great if they're only reading one page before bouncing away. You'll want to make sure that you're using RPM measurements to understand how much each piece of content is earning for you and see where the bulk of that value comes from (i.e., which pages have high RPMs?).
- Be strategic about your goals for each piece of content (or campaign). Think about what specific results you want from every article/post/page, then create a plan around those results! For example: Maybe one goal is to increase sales by 10%, so we need to write an article that will get people interested enough in our product so they'll buy something; another goal could be "Improve SEO ranking," so we need something good for SEO; yet another goal could be "Increase email subscribers." The best way to do this? Make sure everything in these plans aligns with business goals like increasing sales or driving traffic up through social media links or whatever else might help us achieve them!
- Measure results by keeping track of how well each campaign worked over time - did it work out at all? Or did we waste money on something useless? By measuring progress we can identify gaps between desired outcomes and actual outcomes.
There are many ways to address low bounce rate in websites. Creating a better experience includes not bombarding your users with an overwhelming number of ads, and as a result you can turn leads to higher eCPMs and RPMs.
If you're using Autofresh on your site, then this can be even more beneficial for both yourself and your users! As long as it's implemented properly, Autofresh will ensure that there are no gaps in time between when each ad loads, which improves their viewability. Viewability refers to how long an ad was viewable by the user (i.e., how many milliseconds did they spend looking at this particular piece of content). In other words: if bounce rate is low then you can give an even better user experience via less ads; Autofresh will also improve performance metrics such as bounce rate by reducing them even further.
Sometimes less is more--especially when it comes down to improving customer experience on our sites.
In conclusion, RPM is a metric that every business should be monitoring. It’s a great way to measure the effectiveness of your marketing and sales strategies and determine what needs improvement. If you need help with your RPM, Spiny.ai's BidRoll can help!
Ready to Get Started?
See how Spiny can put boosting your revenue on autopilot