Each campaign bought 1000 ad impressions. The CPM for the first campaign was 1€ and the CPM for the second was 0.20€. Let’s imagine that there were two campaigns on the publisher’s website. It’s a valuable metric for optimizing ad performance and comparing ad revenue across different campaigns or ad networks. The eCPM is a useful metric that helps publishers and advertisers understand the revenue generated per thousand impressions, regardless of the pricing model used (CPM, CPC, CPA, etc.). To calculate eCPM, you need to divide the total earnings by the total number of impressions and then multiply the result by 1000.
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The formula to calculate eCPM (effective cost per thousand impressions) is:ĮCPM = (Total Earnings / Total Impressions) x 1000 How to calculate eCPM? Related Article: How to Increase Ad Revenue | Success Formula and Proven Solutions eCPM Formula The higher the eCPM, the higher the total ad revenue for the publisher. Some of your ad inventory can even be purchased via different bidding models, for example, CPC. Therefore, eCPM helps to learn how much you can earn across all bidding models. eCPM gives you the combined average of all advertiser bids for your ad impressions. Because many advertisers are bidding on each ad impression with different CPMs, the price isn’t fixed. The main difference is that eCPM is the average of multiple CPMs. Both eCPM and CPM illustrate the ad revenue generated by the publisher from 1000 ad impressions.
(1000€ / 1M) x 1000 = 1€ (CPM) What is eCPM?ĮCPM stands for effective cost-per-thousand impressions, or effective “Cost Per Mille”.
This means that the publisher will earn 1€ for every 1000 ad impressions he sells to that advertiser. Let’s imagine that the publisher earned 1000€ by selling 1M ad impressions to a particular advertiser. To make the CPM calculation formula more understandable, let’s look at the example. The formula for CPM is the total cost of an ad campaign divided by the number of ad impressions and multiplied by 1000. The CPM price is usually high if the website’s traffic is valuable meaning advertisers will be willing to pay more for your ad impressions. For publishers, CPM represents the revenue generated from these 1000 ad impressions. It’s a fixed price advertisers bid or pay for each 1000 ad impressions. CPM stands for cost-per-thousand impressions, or “Cost Per Mille”.
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