How does Google shares AdSense revenue to its members

In this article, you will know some answers on how does Google calculate Adsense earnings and share to its members (publishers)? What is CTR (Clickthrough rate), what is RPM (Revenue per thousand impressions), what is CPC (Cost per click), and What is Adword (Advertiser)? How they work on online ad campaign etc.

The question like, how does Google calculate AdSense earnings of the members is a common one for newbies even some old publishers / writers in online world. There are few questions like this with regards to Google AdSense which some of them you may or may not know it. Let me put forth few of them.


Before explaining you on this subject, we need to understand how Google generate its Ad revenue to distribute it to AdSense members (publishers). Google generate Ad revenue from its 'AdWord' platform where the 'advertiser' sign up and promote their business by paying certain amount for certain ad / campaign (Text or Banner) to get the leads out of it where we (AdSense member) earn online from Google.

AdSense members' earning from Google & Advertiser:

Now, Google role is to work between 'Advertiser' (AdWord members) and 'Publisher' (AdSense members) for smooth operation of the online ad campaigns without any issues between both the parties.

Google display Advertiser's Banners or Text ads to relevant website or webpage where few things happen.

  1. Relevant keyword search results and its 'page impression' increases.

  2. Ad click may or may not happen from the visitor who visited via search engine.

  3. What is CPC?

  4. Cost per click: If genuine ad click is there then AdSense member receive share of 64% of the click value and the overall value will be deducted from AdWord or Advertiser's account. The rest 36% will go to Google directly.

  5. In case, if one CPC is, as, $0.20, then this amount will be automatically deducted from Advertiser account, will be transferred it to AdSense member account with 64% (Approx $0.13) as revenue and rest $0.07 will go directly to Google.

  6. Here, ISC (this site) will get 10% share from overall value earn by the member as they need to maintain the site expenses, like web-hosting, domain renewal, paying editors, members, revenue sharing, contests and on.

  7. What is CTR?

  8. Click through rate: CTR = No. of clicks / No. of exposures. CTR% = No. of clicks x 100 / No. of exposures. If there is an ad on your webpage and viewed it 200 times and got ad click of 10 from it then 5% is your CTR.

  9. If ad click was wrong then the click value will be returned to Advertiser, soon.

  10. Any misuses from AdSense member will be monitored and considered as 'blacklisted' or even banned.

  11. There won't be any misuses by AdWord members (Advertiser) while checking the AdWord process except they can object for suspicious deduction from the account without any lead or visit to their websites etc. that Google will re-examine it to conclude it.

  12. What is RPM?

  13. Revenue per thousand impressions. More than 1000 page impression and calculation, as below;

    In case, if Estimated earning shows in AdSense account, as, $0.10 from 50 page views, then your page RPM will be, ($0.10 / 50) x 1000, or $2.00.

Google, sometime changes the algorithm and policy without publisher's knowledge as well. Hope the above detail helps you and is enough to know how Google shares the AdSense revenue to its members. Also, feel free to add your question in the comment section so that we can respond. You can promote this post or add to favorite tab as well.

Article by Hafeezur Rahman P
Hafeezur Rahman has joined ISC in 2009 and he is a Job Editor at ISC since 2010, he also a Blogger. Hafeez continue to contribute in various sections of ISC and its sister sites like Techulator, NewRecruitments & Goaspider etc. He is a renowned feature writer & social enthusiast. He loves to write in a simple manner and share his visionary write-ups with the readers on the topics related to his field of interests and different niche. All his write-ups have been popularly read & shared by global readers.

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