How to Increase CPC/RPM in Google Adsense?

I received a mail from Google asking me to change my ad format. At the first look, I thought it is just a normal mail Google Adsense keeps on sending to Adsense account holders from time to time. When I read that mail thoroughly, it just made me to think, why Google wrote this to me. There was some detail about my ad format I used in my site, my site URL and the funniest part is how many times I have used which ad format in my site. Then it made me serious to go through the complete mail in details word by word.

The mail contained the below message to me:-

“Hi,

We've noticed that you have a lot of small ad units such as the 250x250 ad unit on cksofts.com. Here's our recommendation: Change your smaller ad units to the better-performing 300x250 ad units and monitor the results!

Upgrade your ad units now!

Not convinced yet?

Currently you have 110 250x250 units on your site that are earning an average RPM of $2.82. Increasing the size of these ad units to 300x250 could substantially increase your RPM and overall revenue. Publishers typically make $18.79 RPM with the bigger format and you could see similar results too!”

What is RPM?

Page revenue per thousand impressions (RPM) is calculated by dividing your estimated earnings by the number of page views you received, then multiplying by 1000.

Page RPM = (Estimated earnings / Number of page views) * 1000

For example, if you earned an estimated $0.15 from 25 page views, then your page RPM would equal ($0.15 / 25) * 1000, or $6.00.

When I calculated the figure with my Adsense account, I found that the figure which Google has given me in the email it was correct. So I thought, why I should earn less than I can make more with the same effort I am doing presently. Immediately I changed the ad format from 250x250 to 300x250.

Guess what?

I updated this on 19 Oct 12 When I checked my Adsense account just after 24 hours of updating my ad format, my RPM has reached from average $3.00 to $28.18. I was surprised to see this jump within a period of 24 hours and unless Google did not have informed me about this, I was going to lose huge money. This is not it, with that change, the click rate also increased for me which I used to get earlier. And it just happened in a time gap of 24 hours time only. Here is my account screen shot for you to believe.

Hope this will help you to get your RPM high and get a high CPC though. I was lucky to get that mail from Google and hope you get one soon which will guide you through to get your RPM and CPC high.