By: Sharmin Rahman, Senior Director, Yield Management Freestar
RPM & RPS: What they are & Why they Matter
RPM & RPS in advertising are two very powerful metrics for publishers as they look to understand how their ad inventory is performing.
RPM, also known as pageview RPM, is the ad revenue earned per 1,000 pageviews. It is calculated as follows: (Total Revenue / Total Pageviews) * 1000. This value indicates how much revenue a publisher is generating per pageview.
RPS, also known as session RPM, is the ad revenue earned per 1,000 sessions. It is calculated as follows: (Total Revenue / Total Sessions) * 1000. While RPM looks at revenue per pageview, RPS looks at revenue per session. A session will contain multiple pageviews. The longer a user stays on a site, the higher the RPS because the user is consuming more content and thus creating more opportunities for ad monetization.
RPS is an important metric for publishers to pay attention to because it provides a complete view of how your site is performing. It takes into consideration factors such as: ad density, ad viewability, page speed, bounce rate, fill rate, refresh rate, etc. All are factors that impact ad monetization.
How to Improve Your RPS
If a publisher is looking to improve their overall RPS, it is important to investigate the factors listed above. For example, when thinking about ad density, the more ads on page or the heavier the ads on page affects overall user experience. This ultimately discourages users from engaging with a publisher’s site for longer periods of time. Additionally, it can affect a site’s page speed, which is also detrimental to the user experience. If users find the pages slow to load, this will also drive increases in bounce rate. If users are coming to a publisher’s site, but only engaging for a couple of seconds, it leaves little opportunity for ads to actually render and for the publisher to earn revenue.
It is up to the publisher to find that perfect balance when it comes to the number of ads on page. It is not just the number of ads on page that matter, but where these ads live on page is just as important. Publishers should place their ads in sections of their page where they expect users to see them. When bidding on publisher inventory, advertisers and brands are looking for highly viewable inventory (65%+), which ensures their ads are being seen and they are getting an ROI on their marketing efforts.
These metrics are also powerful in that they can help publishers build strategies around content that produce high RPM & will ultimately lead to higher overall RPS. Building content that will keep users engaged for longer periods of time is key.
As a publisher, it is important to pay close attention to the trends in RPS & RPM. These metrics provide a great snapshot of how ad inventory is performing. If you’re a publisher and you’re looking for more information and assistance perfecting your layout for maximum revenue, reach out to us using the button below.