Google AdSense provides a way for publishers to earn money from their online content.
AdSense works by matching ads to your site based on your content and visitors.
Courtesy – YouTube
The ads are created and paid for by advertisers who want to promote their products.
Since these advertisers pay different prices for different ads, the amount you earn will vary.
AdSense act as a mediator between website owners and advertisers.
So, AdSense had a predefined set of rules, based on which they decide the Cost per Click (CPC) when anyone visits any website and click on the ads banners displayed there.
How much AdSense pays a publisher for 1000 views?
The short answer is- PER 1,000 views in India, you can make somewhere between $0.5 — $2, depending on your niche. (Some niches are more profitable than others.)
CPC depends on the keyword and niche of the website. But for the US, it will be between $ 2 to $5 for most clicks, almost 4 to 5 times of other countries.
USA CPC is among the highest as users click ads and pay to avail of the service on the destination website.
It is assumed that users in other countries, e.g. India, will click on the ad, but once they see they have to pay for the service, they will immediately close the page.
It is an ordinary notion that a person from the USA will buy all the services by clicking on those banners.
One of the most crucial factors that can increase CPC is the country you are targeting.
For example, a click on an ad from the USA can pay you up to $2 to $3, and a click on the same ad from India can end up paying only 20 to 30 cents. In general, industries with a higher value per conversion have higher average CPCs because advertisers are willing to pay more per click.
Somalia has an average CPC 92% less than the US average.
Ukraine has an average CPC 92% less than the US average.
Liberia has an average CPC 92% less than the US average.
Moldova has an average CPC 92% less than the US average.
Which is the Most Expensive Country?
The nation with the highest CPCs (and the only country to have a higher CPC than the United States) in the United Arab Emirates, where CPCs average 8% more than they do within the US.
A rich and diverse economy, which relies on finance and tourism, known for their high CPCs, likely helps put the country at the top of the list.
The Top 10 Countries with Highest CPCs
Excluding the UAE and the US, the next ten most expensive countries (Austria, Australia, Brazil, the United Kingdom, New Zealand, Chile, Switzerland, Italy, Canada, and Germany) all either share strong economic ties to the US, have surging economies, have very high English-speaking populations, or some combination of several of these.
Also, in all of these countries, Google acts nearly as a monopoly of search, with no significant competition from other search engines.
The Effect of Local Search Engines
Eastern Europe and Russia have a surprising number of spots at the bottom of the list, with incredibly cheap CPCs.
We know that some of this is due to a struggling Russian economy helping to cut CPCs for foreign advertisers.
It’s also likely due to the presence of Yandex, a competitor search engine to Google, which has an overwhelming majority share of the market in that corner of the world.
In similar markets, where Google doesn’t have a majority share of search, like Japan and South Korea (where Yahoo Japan and Naver are the locals’ search engines of choice), we also see discounted CPCs from Google (much as here, in the US, Bing has cheaper CPCs).
A Growing Mobile Only Audience
South and Central America, Africa, and much of the Middle East have CPCs far below the US average.
While this is for several economic reasons and limited internet penetration in these regions, a growth factor is the rising number of users accessing the internet and Google.
Internationally, mobile CPCs are generally cheaper than desktop CPCs, so a successful mobile strategy is increasingly critical in converting these international users.
To see complete details of the CPC of each country concerning the USA please click on the link under the courtesy section.
Is it not an innovative idea that instead of restricting CPC to location, AdSense should be restricted to the person’s financial status clicking on the ads banners?
For example, if Mukesh Ambani clicks on an ad banner while located in India, the website owner shall get more revenue than a jobless man in the USA.
Mukesh Ambani will have more buying power and buy most of the services by clicking the ad banners than the jobless man in the USA.
How can this be implemented?
Google knows about every person living on this planet.
Thanks to android smartphones, every person has to log in to their Gmail id even to start using that smartphone for the first time and sync it.
Whether Google accepts this on records or not, we are dead sure that Google must be aware of the financial status of every person, as they have all data available with them.
Therefore, it is very much to calculate the revenue of the ad clicks based on the person’s financial status clicking the ads.
So, instead of restricting the CPC of AdSense to the location, they should link it to the person’s financial condition, visiting any website and clicking on the ads banners.
How will it help Google AdSense?
Although the USA is the wealthiest country globally, most people are immigrants from India, Pakistan, Sri Lanka, and other developing countries due to high education and technical skills.
These migrants work in the USA to earn in dollars, which they end up saving, to live a lavish life back in their country.
So, if AdSense feels that a jobless man in the USA will give better ad revenue to advertisers than a Billionaire in a developing country, it’s a significant misconception.