eCPM Calculator - How to Calculate Effective Cost Per Mille (eCPM)
What is eCPM?
Effective cost per mile (eCPM) is a metric that measures the revenue generated for every thousand ad impressions. It is generally used by ad publishers and advertisers to understand and compare the performance of different ad units, networks, or monetization strategies.
How to use the eCPM calculator
To calculate eCPM, enter the total earnings from an ad campaign and the total number of impressions it generates. The tool will instantly calculate your eCPM.
eCPM formula
eCPM=Total Earnings/Total Impressions×1000
Understanding the eCPM result
The ideal eCPM will vary according to your targets, ad type, and industry
- A high eCPM indicates that your ad placements are generating significant revenue per thousand impressions. This suggests effective targeting, ad formats, or high-quality content that engages viewers.
- A low eCPM indicates that you are generating less revenue per ad and need to optimize your ad placement, targeting, or content strategies.
When to calculate eCPM
eCPM should be calculated in the following situations:
- While comparing ad performance with various placements or on different platforms
- While reviewing your ad monetization strategies
- While evaluating the effectiveness of various ad formats
- Before setting benchmarks for future ad performance goals
- To assess the impact of seasonal trends on ad revenue
eCPM calculation example
Imagine that your website earned $5,000 in ad revenue from 1,000,000 impressions. You can calculate eCPM as follows:
eCPM=Total Earnings/Total Impressions×1000
eCPM = ($5,000/1,000,000)×1000 = $5
In this example, your eCPM is $5. This indicates that you earned $5 for every 1,000 ad impressions
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