What Is Effective Cost Per Mille (eCPM)?

Effective Cost Per Mille (eCPM) shows how much money a publisher makes for every 1,000 ad impressions. Unlike CPM, which measures how much advertisers pay for 1,000 impressions, eCPM measures the revenue a publisher earns from those impressions.

Publishers use eCPM to improve ad placements, track how well their ads are performing, and assess their ad revenue strategies.

Keep in mind that eCPM only tracks impressions, not clicks. Clicks are measured by click-through rate (CTR). eCPM is just one part of understanding ad performance and should be looked at alongside other metrics.

eCPM Formula

To calculate eCPM, use this formula: eCPM = (Total Ad Revenue / Total Impressions) x 1,000

For example, if a publisher earns $500 from an ad campaign with 100,000 impressions: eCPM = ($500 / 100,000) x 1,000 = $5

This means the publisher made $5 for every 1,000 times the ad was shown.