Part 1 - A History of RPM

Getting a fuller understanding of RPM

In this series of articles, I plan on sharing my insights into RPM and how this metric has impacted all our lives in the domain industry over the last decade. I hope you enjoy the articles as much as I have writing them.

Escrow.com

For those of you that are unaware, RPM means Revenue Per Thousand Visitors. I find that very few people understand how this universally accepted measurement term is calculated and how it can vary from one provider to another. During the following articles I will be referring to how RPM has shaped the history of the domain industry….

Most people would be aware of the formula for a domain’s RPM looks like the one below:

Simplistic RPM formula

This looks simple enough until you begin to dig into it. The reality is that a sustainable market RPM formula it looks something more akin to the following:

Extended RPM Formula

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Part 3 – Traffic Test – Improving the Revenue

Turning the revenue trend chart around.

This is the third in the series on running a traffic test. The first two articles in the series can be viewed at:
Part 1 – Traffic Test – Baseline Data
Part 2 – Traffic Test – Focusing on Performance

As we discussed in Part 2, what’s vital in running a traffic test is understanding the performance, both positive and negative. The data is the data but interpreting what it’s telling you is far more important if you are wanting to develop long-term value from your domain traffic.

Escrow.com

So how is the real live test portfolio progressing so far? The following two charts show the overall trend lines are all heading in the right direction. Despite the time of year and the typical overall decline in advertising spend over the northern hemisphere summer, revenue is continuing to trend upwards.

Revenue and plRPM charts

The second chart clearly shows the reason for this is due to the normalised RPM (or plRPM as we call it at ParkLogic) is also trending upwards as the optimisation algorithms continue their work. For those of you that are unaware, RPM stands for Revenue Per Thousand - more of per thousand what shortly. It’s at this point that I’m going to take a little detour to explain a few things about plRPM and how it differs from RPM.

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