What is eCPM?
eCPM stands for effective cost per mille (mille is Latin for ‘thousand’) and is a measure of the earning rate of an ad network. It is used to compare the efficiency of different ad networks and to determine which one will provide the highest return on investment (ROI). eCPM is calculated by dividing the total earnings of an ad network by the number of impressions it receives.
How is eCPM Calculated?
eCPM is calculated by dividing the total earnings of an ad network by the number of impressions it receives. For example, if an ad network receives 1000 impressions and earns $10, its eCPM would be $10.
What Factors Influence eCPM?
eCPM is influenced by several factors, including:
- The number of impressions received
- The type of ads displayed
- The ad network’s targeting capabilities
- The quality of the ads
- The amount of competition for ad space
The higher the number of impressions and the more targeted the ads, the higher the eCPM. Similarly, ads with higher quality and less competition will also result in higher eCPMs.
Conclusion
eCPM is a useful metric for comparing the performance of different ad networks and determining which one will provide the highest return on investment. By understanding how eCPM is calculated and what factors influence it, advertisers and publishers can make informed decisions about their ad network strategy.Relevant Links: