PAY PER CLICK you earn only when your vistor get interested to click the ads by google.The click must be valid.The rate of each click depends on the type of ads.Your niche/focus/target and keywords are relevant in adsense earnings.The adsense shown in your blog matches to your blog's content.
The factors that affects your earnings in a pay per click ads:
CPM or the daily page impression determines the amount of times the adsense is viewed when it was clicked.The more visitors the higher is impression.
CTR click through rate is the percentage number of clicks divided by the number of views impression.Higher traffic higher CTR.
CPC cost per click is the amount set by the advertisers for every ad.
EARNINGS =CPM x CTR x CPC
To understand more how your adsense earnings calculated visit here
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