![]() ![]() ![]() eCPM MEANINGĮCPM or “Effective Cost per thousand impressions” is used by publishers to determine the revenue generated from a thousand impressions of an ad campaign and to measure the performance of a publisher’s inventory being sold in various channels.įor example, if an ad campaign generated $100 revenue after receiving 10,000 impressions, the eCPM would be ($100/10,000) * 1000 = $1. It is also a great metric used by advertisers to measure the cost of the campaign, how much the publisher will get paid for every 1,000 impressions, and to evaluate the effectiveness of displaying ads.ĬPM is traffic driven, the higher the traffic of the site the better the CPM. The CPM rate helps advertisers and companies to spread their products to a larger audience for an effective advertising cost. To calculate CPM you take ($20/2000) * 1000 = $10 which means that the advertiser is willing to spend $10 for every thousand impressions.ĬPM = (Cost of the campaign/ Number of total impressions) * 1000 Advertisers set their desired price per 1000 ads served.įor example, the advertiser budget for a campaign is $20, and the ad receives 2000 impressions. CPM stands for “Cost Per Mile” or cost per 1000 impressions. In this post, we’ll explore the differences between CPM and eCPM, how to calculate each, and how they can be used to measure earnings.īy the end of this post, you’ll better understand these important metrics and how to use them to optimize your ad monetization strategy. Two of the most commonly used metrics in the industry are CPM and eCPM, but while they may sound similar, they have distinct differences that are important to understand. Maximizing ad revenue is a top priority for publishers, but with so many different metrics to track, it can be easy to get confused.
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