Effective Cost Per Mille (eCPM)
  • 17 Apr 2023
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Effective Cost Per Mille (eCPM)

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What is eCPM, and how is it calculated?

First things first: what exactly is eCPM? At its core, eCPM is a metric that represents how much revenue you earn per thousand ad impressions. Essentially, it measures the effectiveness of your advertising efforts. The formula for calculating eCPM is simple:

eCPM = (Total Earnings / Total Impressions) x 1000

For example, if you earned $100 from 10,000 ad impressions, your eCPM would be:

eCPM = ($100 / 10,000) x 1000 = $10

This means that you're earning $10 for every thousand ad impressions.

How is eCPM different from CPM?

CPM, or "cost per mille," is a similar metric that measures how much it costs to deliver a thousand ad impressions. Unlike eCPM, CPM doesn't take into account how much revenue you earn from those impressions. Instead, it simply measures the cost of delivering them.

So while CPM can give you an idea of how much you're spending on advertising, eCPM is a more useful metric for determining the effectiveness of your campaigns. After all, the goal of advertising isn't just to deliver impressions—it's to earn revenue.

What factors affect eCPM?

Several factors can affect your eCPM, including:

  • Ad format: Different ad formats (e.g. banners, interstitials, rewarded video) may have different eCPMs.
  • Ad placement: Ads placed in premium locations (e.g. above the fold, within content) may have higher eCPMs.
  • Ad targeting: Ads that are well-targeted to specific audiences may have higher eCPMs.
  • Ad quality: Ads that are high-quality and engaging may have higher eCPMs.
  • Industry trends: eCPMs may vary depending on trends within your industry or vertical.

How can you optimize your eCPM?

To optimize your eCPM, you can focus on improving the factors that affect it. For example:

  • Test different ad formats to see which ones have the highest eCPMs.
  • Experiment with different ad placements to find the most effective locations.
  • Use data to target your ads to specific audiences.
  • Invest in high-quality ad creative that engages users.
  • Stay up-to-date with industry trends to adjust your strategies accordingly.

How does Tenjin measure eCPM?

At Tenjin, we offer a comprehensive suite of mobile measurement and optimization tools. Our platform allows you to measure eCPM across all of your advertising channels, so you can easily monitor the effectiveness of your campaigns and make data-driven decisions to optimize your results. With Tenjin, you can get a clear picture of how your advertising efforts are performing, and take action to maximize your revenue.