Effective Cost Per Click (eCPC)
  • 17 Apr 2023
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Effective Cost Per Click (eCPC)

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What is eCPC?

eCPC, is a common bidding strategy that is used by app marketers in advertising campaigns that optimizes the bidding strategy to increase the conversion rate based on their target CPC. Many ad networks use machine learning algorithms and historical data to auto adjust bids in real-time bidding to generate higher conversion rates.

How is eCPC calculated?

eCPC is calculated by dividing the total ad revenue reported by the ad network by the total number of clicks reported by the ad network. Mathematically, it can be represented as:
eCPC = Total Ad Revenue reported by Ad network/Total Clicks reported by Ad network

How is eCPC different from other bidding strategies?

There are many different bidding strategies commonly used, such as CPC or automated bidding like CPA and target ROAS. eCPC on the other hand, gives a balance between the conversions seen and the cost per click. The goal of eCPC bidding is to maximize the conversions so that the CPC is within the target limit.

What are the benefits of using eCPC?

There are many benefits for using eCPC in advertising. The primary benefit is to maximize conversions. eCPC is able to adjust the bids automatically, which can generate a higher conversion rate. Another benefit is that since the CPC target is set by the advertiser, there is substantial cost control as the eCPC stays within the target and does not exceed the limit. With eCPC, advertisers can save time from manually adjusting bids as the bidding process is automated. This allows marketers to keep their focus on other areas of their user acquisition strategy.