Revenue per Mille - short RPM: You’ve heard about it, you’ve read about it, you’ve probably discussed it on discord servers or somewhere else. So have we, but we have heard so many contrasting things about our Linkvertise RPM that we feel the need to lay it all out for you. All the questions, all the answers in one article, so let’s dive into it, shall we?
Changes to your RPM:
We are not offering fixed payout rates. Our revenue model is performance based which means we value the user-experience and the user-interaction of your links. You’ll find further information about our revenue model here.
Important to note: When talking about the RPM, we are talking about the Monetized RPM, meaning the RPM for all revenue-affecting actions and metrics. Striving for maximum transparency, we only refer to the Monetized RPM as indicator for your earnings, because let’s face it: THIS is what matters.
RPM for individual links
In your dashboard tab, you will find a table containing all your created links individually. For tracking the performance, the RPM for each individual link in included. However, this RPM reflects the total clicks your links received as well as the money you earned with it - meaning we have a slightly different calculation for the individual RPM for tracking purposes. We are working on a way to display the Monetized RPM for each individual link as well. So stay tuned.
How is the RPM defined?
The RPM is the most important metric to measure the value and performance of your links. Well, maybe apart from your actual Income.
As you already know, the Monetized Revenue per Mile reflects the estimated value of all monetized actions of your links per 1000 clicks. You can find this figure next to your link, as well as in the graph in your dashboard.
Your RPM is always calculated for the selected time period. This way you can always keep an eye on the current progress of your stats.
Speaking of your stats, here is a breakdown of all the stats there are:
Clicks
A click is the actual click out from your Linkvertise link to the link target. It’s counted after completing the ad-task.
Impressions
An impression is the actual visit of the Linkvertise page. For verified users, every visit of the Linkvertise page is counted.
Monetized Actions
The Monetized Actions take all revenue-generating actions into consideration. Your audience’s interaction with the ads as well as Premium users clicking your links and generating Premium revenue for you - everything that leads to revenue on your side. We display the total number of Monetized Actions for data tracking purposes and to make it easier for you to gain full insights into your link’s performance.
Monetized RPM
The Monetized RPM considers all monetized actions your audience completes and triggers when clicking your links. Therefore, this is the ultimate indicator for your projected income per 1000 clicks.
Balance
Well, this is what it all comes down to. Your balance displays your total income. Self-explanatory.
Understanding the RPM influences
To understand how we calculate your RPM and what factors influence it, you’ll have to know where the money comes from, what the performance based revenue model is and which metrics we use to estimate your RPM.
The money origin
The origin of the of the money are advertisers. Their job is to generate traffic for the advertisements of their clients. Said advertisements are the ad-tasks your audience has to fulfill (Read the article, Downloads etc.).
We also only show quality advertisements and no NSFW or inappropriate content. These kind of ads are ratet higher in income which has a positive influence on your revenue.
Performance-Based-Revenue-Model
As mentioned before, the Performance-Based-Revenue-Model is not just unique but, also has various advantages. Because of this model we can offer higher payout-rates than our competitors who have a fixed payout rate.
This model contains of the following very important metrics:
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Click Count
We have explained earlier how we calculate clicks. You’ll only get revenue, when your audience completes the whole ad-task, meaning your audience has to interact with the ads. A click without any monetized action will not lead to an increase in RPM nor revenue.
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Ad-Tasks Your community has to interact with the ads in order to influence your RPM. The more engagement, the higher the respective RPM.
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Monetization Preferences
You decide, how you want your community`s experience to be like. Ranging from a very user-friendly to a revenue-oriented setting system, it is up to you to find the perfect setting for your audience and content type. For some audiences, a more revenue-oriented might work perfectly and lead to a higher RPM. For other audiences, it might be advantageous to select a more user-friendly approach.
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Traffic Source The advertisers have customers from all around the world. Therefore is their target group depending on their customers goals. This means for us that we value geo-locations depending on the predetermined target groups. In the end Top-Tier countries are selected after the demand of our advertisers. Generally speaking Top tier Countries are mostly in North America and Western Europe.
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Premium Clicks Another Linkvertise exclusive are the clicks from Premium-Users. You’ll find a detailed explanation in the linked article. But, generally speaking the click of a Premium-User is worth more then from a free user.
The calculation
To illustrate this, we have created a pyramid. This shows the optimal allocation of revenue sources, which are necessary to achieve a high RPM.
The optimal allocation for a high RPM is a strong foundation. This foundation consists of traffic from Premium-Users. Like we already explained, the click of a Premium-User is more valuable than the click of a Free-User.
Continued with traffic from the Search-engine you are already paired pretty good. Just with these four factors it is likely to earn more then $ 40 per 1000 impressions.
Followed up by monetization preferences that work with your community. A revenue-oriented approach, boosts your RPM and consequently your income.
Last but not least, a traffic origin from Top-Tier-Countries (mostly US and EU traffic) is very favorable. This should not surprise you as it is common in online advertising.
What else influences your RPM?
Since you now know what the RPM is, how it derives from competitors calculations and what influences the RPM. You’re probably now interested in finding out which strategies you can follow to target a high RPM. Therefore we created an article with six methods to achieve a Top-Tier-RPM here.
We hope you found this article helpful and informative. We wish you great success with Linkvertise!
Your Linkvertise Team 🧡
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