Effective Cost Per Mille (eCPM)
What is Effective Cost Per Mille (eCPM)?
Effective Cost Per Mille (eCPM) is a metric typically used by publishers and app developers to calculate the effective revenue generated per thousand impressions. eCPM helps publishers understand their ad monetization, regardless of the ad pricing model.
How to Calculate eCPM?
To calculate eCPM, divide total ad revenue generated by the total impressions available. Then, multiply by 1000.
eCPM = (Total Ad Revenue / Total Impressions) x 1000
Why is eCPM Important for Publishers and App Developers?
eCPM is crucial for publishers and developers as it provides insights into the efficiency of their ad placements and monetization efforts. eCPM can vary significantly depending on factors such as the ad unit, ad network, location, operating system (e.g., Android or iOS), and browser. By analyzing eCPM, publishers and developers can better understand their ad performance and make informed decisions to optimize revenue.
How Do eCPMs Vary by Ad Unit?
Rewarded ad units typically generate significantly higher eCPMs than non-rewarded ad units. For example, it is common for an Offerwall ad unit to generate $100+ eCPMs for publishers and app developers. Non-rewarded ad units can vary depending on the effectiveness of the placements, with banner ads typically generating eCPMs of less than $1.00, while branded video ads can generate eCPMs in the $3-$20 range.