Running the numbers on a developed site can be a little confusing but understanding how they work can really help you value a site and determine where to spend your time and money.
I track AdSense on quite a few sites. Here’s how I parse the data:
- Make sure you set up channels for each site and ad unit. This is absolutely essential.
- Look at your thirty day totals by channel/site to determine highest performing site(s)
- Remember that Google measures by impression not page view. Three units per page (the max they allow) means 3 impressions per page view
- Google eCPM rate is your earnings per 1000 impressions. If you have three units per page then you have to triple that number to get your average revenue per page view
An example: We have a top performing site that, using the tools above, returns 4.8 cents per page view or $48 per 1000 page views. This was surprising to me but the knowledge meant that we needed to focus a lot more attention on driving traffic to this site since even a slight daily bump adds up really fast.
The same site averages 2.9 page views per visit so a visit is worth an average of $.14. A thousand visits a day is worth around $140 so spending anything up to that amount daily to drive traffic is worth it, remembering that sites generating $50,000 in annual revenues (which is about what those 1000 visits per day gets you) are worth a multiple of those revenues to a buyer, probably at least $300k. You could argue that spending far more to drive traffic makes sense because you’re losing in the short term (aka, investing) but building equity in the long term.
Know your numbers- you can easily set up a spreadsheet to track them.
BTW, the site I’m using as an example is in an enormous, information-hungry consumer market involving a lot of spending. I’ve also left affiliate revenue out of the equation to simplify things.