All Posts Tagged With: "ecpm"

eCPM or Effective Cost Per Thousand (M being the Latin symbol for thousand) is a term that tends to baffle a lot of people. eCPM like CTR is used to determine how well a particular ad or ad spot is performing and is how the effectiveness of most campaigns is measured. It represents the average cost a publisher will earn for every 1000 impressions. It’s calculated with the following forumla.

eCPM = Earnings / Impressions x 1000

When optimizing your ad spots eCPM this is an important piece of information to look at. In most cases the higher the eCPM the better because that means your making more for the same amount of impressions. When optimizing ad spots you’d compare the eCPM for each and determine what combination of color, location and size yields the highest eCPM. If your comparing individual ads you’d compare the eCPM of each one and if one was significantly higher than another it might benefit you to switch completely to the higher paying ad.