What is eCPM (Effective Cost Per Mille)?
eCPM (Effective Cost Per Mille) - the commonly used term in digital advertising for calculating revenue generated from a thousand ad impressions. It is an essential metric for publishers and advertisers to measure the effectiveness of their ad campaigns.
Unlike traditional CPM, which only calculates revenue based on impressions served, effective CPM takes into account other factors such as click-through rates (CTR) and conversion rates. This provides a more accurate picture of how much revenue an advertiser generates per thousand impressions.
In simple terms, eCPM measures the total earnings generated by an ad campaign divided by the number of impressions multiplied by 1000. This metric helps advertisers to optimize their campaigns and maximize their ROI while allowing publishers to earn more from each impression.