You are going to learn what is eCPM and how to to calculate and increase it. The eCPM is important revenue metrics used by online Web publisher for tracking.
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Meaning of eCPM
This is a kind of metric method used in measuring the monetization of an ad’s performance that are based on its revenue being earned per 1000 ad impressions and it is acronym to ‘effect cost per mile’.
This is being used by many online platform that are using the ads monetization system which include mobile, desktop, apps and video.
The more higher eCPM you have, then the more money you get from ad units as a publisher.
You can also check What are pageviews.
So you may ask what is eCPM and how calculate it. It is simple and not hard as you may thought.
It is a total Ad earning times 1000 Ad impressions.
How do this metric results in earning
Many people who don’t understand, do ask the same question.
Though, for you to read till this point would have cleared some confusion you have.
Here is a guide to help in explaining and demonstrate it’s use.
For example, if you are a publisher and you are getting 100,000 impressions from your site a day.
Which you are using and testing different types of advertising model and you want to mainly focus on display ads.
You now sign up for the Google Ad manager and place it’s ad units on your site.
Then, after some days time in your ad dashboard, your eCPM is being calculated to $4.
Which means you are going to be using this formula:
eCPM = Total Ad Earnings / Impressions × 1000
Now put your total Ad Earnings ($400) and impressions of (100,000)
Your eCPM is = $4
Then, for 100,000 impressions, you can get in a day as a publisher which advisers will be paying you $400 for every 1,000 impressions you do generate, you earn $4.
If your site traffic did not drop but stay constantly till the next 30 days at 100,000 impressions in a day.
Then you will be making $12,000 in your ad revenue with a $4 ad eCPM.
Here is how to brake the monthly basis
eCPM = Total Ad Earnings /Impressions ×1000
Now, put in the Total Earnings ($12,000) with impressions of (3,000,000)
That is = ($12,000 / 3,000,000)
Then eCPM is =$4
How You Can Increase Your eCPM
As far as eCPM can be used by many platform and each platform with a different set of users, ad network, rules and ad servers it will have it’s own kind of solution.
For you to improve it, you will need to put a little effort to optimize your ad monetization strategy.
Whether by displaying ad via desktop or through mobile app.
Here are few things you can try. The list are almost endless but let’s take a look.
- Optimize the ad layout
- Increase your fill rate by setting up multiple ad network
- Test different ad units
Why is my eCPM is very low
This is a similar question to the section of increasing ad revenue, mentioned above. There can be many reasons for poor ad earnings o low eCPM. Which include displaying ads from an ad network that doesn’t support your traffic location or a poor service ad network, or not having competition of advisers on your traffic and even a slow website.
Having some of your articles ban by your ad network and not displaying your ads correctly.
A bad layout is also a factor of and not putting the correct ad units.
What is a good eCPM in a website
It differ because it do depends on where the ad is being placed and your traffic location, places like UK and US use to be better.
Now you understand what is eCPM, and with more knowledge about it through this article.
What 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
Though it’s differ a lot and depend on certain factors such as ad location, seasonality, traffic location, your site speed. The average is between $4 – $10.