Effective Cost Per Mille
The estimated earnings a publisher receives for every 1,000 ad impressions served, accounting for all types of revenue.
Effective Cost Per Mille (eCPM) is an essential metric that allows publishers to compare revenue generated across different ad units, campaigns, and monetization strategies, regardless of whether they are based on clicks, impressions, or conversions.
eCPM vs. CPM
While CPM is the cost an advertiser pays for 1,000 impressions, eCPM is what the publisher actually earns per 1,000 impressions. eCPM is a “normalized” metric that helps you understand the true value of your traffic.
How to calculate eCPM
The formula for eCPM is:
(Total Revenue / Total Impressions) * 1,000
For example, if a campaign earned you $50 from a total of 25,000 impressions, the eCPM would be $2.00.
Why publishers use eCPM
- Comparing Networks: It helps you see which ad network is performing better relative to the traffic you send them.
- Optimizing Layouts: You can determine which ad positions on your page are most profitable.
- Revenue Forecasting: It provides a reliable baseline for estimating future earnings based on traffic growth.
Monetise your website without the clutter
Inset helps small publishers and niche sites earn more through premium, non-disruptive promotions. High eCPMs, easy setup, and respect for your audience.
Related Terms
Ad Impression
A metric used to quantify the number of times an advertisement is fetched and displayed on a screen.
Click-Through Rate
The percentage of users who clicked on a specific link or advertisement compared to the total number of users who viewed it.
CPM (Cost Per Mille)
A common advertising metric representing the cost an advertiser pays for every 1,000 impressions of an advertisement.
Revenue Share
A monetization model where a service provider or platform pays the content creator a percentage of the revenue generated from their work.