What Is eCPM and How Can You Increase It?

You are going to learn what eCPM is and how to calculate and increase it. The eCPM is an important revenue metric used by online publishers for tracking.

This is a kind of metric method used in measuring the monetization of an ad’s performance that is based on its revenue being earned per 1000 ad impressions, and it is an acronym for “effect cost per mile”.

This is being used by many online platforms that are using the ad monetization system, which includes mobile, desktop, apps, and video.

The higher the eCPM you have, the more money you get from ad units as a publisher.

So you may ask what eCPM is and how to calculate it. It is simple and not as hard as you may have thought.

It is a total ad earner times 1000 ad impressions.

How does this metric translate into earnings?

Many people who don’t understand do ask the same question.

However, reading until this point should have cleared up any confusion you may have had.

Here is a guide to help in explaining and demonstrating its use.

For example, if you are a publisher and you are getting 100,000 impressions from your site a day, which means you are using and testing different types of advertising models, you want to mainly focus on display ads.

You can now sign up for the Google Ad Manager and place its ad units on your site. Then, after some days in your ad dashboard, your eCPM is calculated to be $4.

Which means you are going to be using this formula:

Total Ad Earnings/Impressions multiplied by 1000 eCPM.

Now put your total ad earnings ($400) and impressions of (100,000)

together and multiply them by 1000.

Your eCPM is $4.

Then, for 100,000 impressions a day as a publisher, your advertisers will be paying you $400 for every 1,000 impressions you generate. You earn $4.

If your site traffic did not drop but stayed constant for the next 30 days at 100,000 impressions per day, then you would be making $12,000 in your ad revenue with a $4 ad eCPM.

Here is how to break up the monthly basis.

Total Ad Earnings/Impressions multiplied by 1000 eCPM.

Now, put in the total earnings of $12,000 with impressions of 3,000,000.

That is ($12,000/3),000,000. Then eCPM is $4.

How Can You Increase Your eCPM?

As far as eCPM can be used by many platforms, and each platform with a different set of users, ad networks, rules, and ad servers will have its own kind of solution.

You will need to put in a little effort to optimize your ad monetization strategy, whether by displaying an ad via desktop or through a mobile app.

Here are a few things you can try. The list is almost endless, but let’s take a look.

  • Optimize the ad layout.
  • Increase your fill rate by setting up multiple ad networks.
  • Test different ad units.

Why is my eCPM very low?

This is a similar question to the section on increasing ad revenue mentioned above. There can be many reasons for poor ad earnings or low eCPM, which include displaying ads from an ad network that doesn’t support your traffic location or a poor service ad network, not having competition from advertisers on your traffic or even a slow website.

Your ad network has banned some of your articles and is not displaying your ads correctly.

A bad layout is also a factor of not putting the correct ad units.

What is a good eCPM for a website?

It differs because it does depend on where the ad is being placed and your traffic location. Places like the UK and US used to be better.

Conclusion

With this article, you now understand what eCPM is and have gained more knowledge about it.

FAQ

What exactly does eCPM stand for?

eCPM means “effective cost per thousand impressions” or “effective cost per mile.”

How to calculate eCPM?

For you to calculate it, all you need to do is to divide the total ad earnings by impressions and then multiply it by 1000.

What is the average eCPM?

But it differs a lot and depends on certain factors such as ad location, seasonality, traffic location, and your site speed. The average is between $4 and $10.

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