How to Calculating eCPM?

Whether you’re an amateur website owner or a professional webmaster, chances are you’ve heard the term eCPMs more than once.

So, what is eCPM?

eCPM stands for “Effective cost per Mille” or “Effective cost per thousand”.

eCPM allows internet advertisers and publishers to measure banner ads performanceand thus determine how to best improve results, according to the specific website and a variety of other factors. eCPM is a measure that allows advertisers and publishers to know how much they are earning from every 1,000 ad or website impressions.

eCPM is the result of a calculation of the ad revenue generated by a specific banner or campaign, divided by the number of impressions of the banner or campaign in question expressed in units of a thousand.

How do you calculate eCPM?

Calculating eCPMs is a very simple process once you know the basics.

Take a look at the steps below:

  1. Calculate how many impressions or views a particular ad or website has had during a specific time period. For example, let’s say your ad or website was viewed 10,000 times over the last month. This data can be gathered with the help of several traffic tracking programs, such as Google Analytics, etc.
  2. Sum up the earnings generated by the ad or website during that time period. For example, let’s say the total ad revenue during the past month was $500.
  3. Keeping these figures at hand, divide the total earnings by the number of impressions. Using the numbers in this example, calculation would be as follows:                                     $500 ÷ 10,000= $0.05
  4. Multiply the result by 1,000. Following the example above, your eCPM would be $50 (0.05 x 10,000).

Why is it so important?

eCPM enables both publishers and advertisers to compare between results and concluding which advertiser/website/ad size or position is the most profitable per 1000 imps.

For example, let’s say you monetize your website by several platforms, each served a different amount of impressions, and thus, simply comparing earnings wouldn’t be an accurate measure. Since, if platform #1 served 100k imps and earnings are $20, and platform #2 served 20k imps and generated 10$, then overall, platform #1 generated higher earnings, however, for much higher amount of impression. The solution, of course, is to calculate the eCPM, and concluding which of the platforms paid more for 1000 imps – clearly, platform #2.

Usually, media networks and self-serve ad platforms count with sophisticated software that automatically calculates eCPMs. However, it is essential for any publisher and advertiser to know eCPMs and their calculations like the back of their hand; eCPM is the most accurate way to measure an ad or campaign’s performance, compare between solutions, and improve earnings accordingly.

 

VN:F [1.9.20_1166]
Rating: 3.0/5 (2 votes cast)
VN:F [1.9.20_1166]
Rating: -1 (from 1 vote)

Related posts:

7 Effective Tactics for Getting More Business from Social Media 7 Effective Tactics for Getting More Business from Social Media
7 Ways to Make Money Online 7 Ways to Make Money Online
Coneting AdNetwork Coneting AdNetwork
Oxycodes Oxycodes

One Response to "How to Calculating eCPM?"

  1. amit says:

    hello admin,….

    i have avg 0.3 CTR in this month. i know this is very low.
    will ad network pay me, like yllix etc. now

Leave a Reply

You must be Logged in to post comment.

  © 2019 ADSWIKI.NET All rights reserved.
Home |About|Advertise|Privacy Policy|Contact

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Third-parties and Opt-Out
Third-parties may display interest-based advertising to you in applications or websites, based on your use of applications or websites over time and across non-affiliated apps.
Such third parties may combine and use information from websites or applications on your current browser or device with information from your other browsers or devices for advertising purposes. To opt-out of such interest-based advertising and/or cross-device targeting, please use the methods provided below for opting out on each of your browsers and on each of your devices:
Network Advertising Initiative (NAI) – http://optout.networkadvertising.org/
Digital Advertising Alliance (DAA) – http://www.aboutads.info/choices/
Digital Advertising Alliance Canada (DAAC) – http://youradchoices.ca/choices
Digital Advertising Alliance EU (EDAA) – http://www.youronlinechoices.com/
Please note that opting out of interest-based advertising and cross-device targeting does not mean you will no longer receive online advertising. It does mean that the third-party from which you have opted out of receiving interest-based advertising or cross-device targeting by using the methods provided above will no longer deliver ads tailored to your Web preferences and usage patterns on a particular web browser or device.

Close