What is eCPM?

Hello Friends!

Can anybody explain me what is eCPM? and it should be Higher or Lower? I have read articles about eCPM, but I could not understand them.

Please explain me in short.

Thanks.

 

What you are being paid per thousand impressions, higher the better.

 

Effective CPM

From a publisher's perspective, the effective cost-per-thousand impressions (eCPM) is a useful way to compare revenue across different channels and advertising programs.

It is calculated by dividing total earnings by the number of impressions in thousands. For example, if a publisher earned $180 from 45,000 impressions, the eCPM would equal $180/45, or $4.00.

However, please keep in mind that eCPM is a reporting feature that does not represent the actual amount paid to a publisher.

Understand?

 

its a measurement, a tool if you will to see how you are doing overall.

 

It is called eCPM (effective CPM) because it does take into consideration all income from various deals, e.g. fixed fees for display advertising, CPC revenue or affiliate commissions (after cancellations).

Example: You have an ad space (e.g. 468x60) that is being used for banner advertising, Google AdSense and affiliate banners. Your revenue is:

From banner advertising: 100,000 Impr. x $10 CPM = $1,000
From Google AdSense: 100,000 Impr. x 0,5% CTR x $0,50 CPC = $250
From affiliate banners: 100,000 Impr. x 0,5% CTR x 5% CR x $50 CPO = $750

In total you had 300,000 Ad Impressions and made $2,000. Your eCPM is $6,67. The eCPM from banner advertising is $10, from Google $2,50 and from affiliate banners $7,50. So if possible you should sell banner advertising.

Best, Lars

 

Thanks to all for such a valueable information. I have understood all.

Thanks again.

 

eCPM means cost per thousand impressions

 

Here is a long explanation about eCpm and how to use it

http://simply-adsense.com/blog/adsense-term-per-week/what-is-ecpm/