eCPM

Description

eCPM, or Effective Cost Per Mille, is a metric used in digital marketing to calculate the estimated revenue a publisher earns for every 1,000 impressions of an ad. It is a crucial metric for understanding the efficiency and profitability of advertising campaigns, comparing different ad formats, and optimizing ad placements. Essentially, eCPM provides a way to standardize earnings across different pricing models, such as CPM (cost per thousand impressions), CPC (cost per click), and CPA (cost per acquisition). By converting all revenues into a common metric, eCPM enables marketers and publishers to make informed decisions about which ads are performing best.

Examples

• A popular blog site running banner ads through Google AdSense might see an eCPM of $5.00, meaning they earn $5 for every 1,000 impressions of their ads.
• A mobile app developer uses a mix of interstitial and video ads. By calculating the eCPM, they discover that video ads have an eCPM of $10, double the $5 eCPM of interstitial ads, guiding them to prioritize video ad placements.

Additional Information

• eCPM can vary greatly depending on the industry, target audience, and ad quality.
• Monitoring eCPM helps in optimizing ad inventory and increasing overall revenue by focusing on high-performing ad units.