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Effective Cost Per Mille, the actual cost per 1,000 impressions after factoring in ad revenue

Eric Gilmore

Mar 19, 2024

As a blogger or website owner, you may have heard the term eCPM thrown around when it comes to ad revenue. But what exactly is eCPM and how can you use it to optimize your ad revenue?\r\reCPM stands for effective cost per mille, which is the amount of revenue earned per thousand impressions (mille is Latin for thousand). It is a metric used to measure the effectiveness of ad campaigns and can help you determine which ads are performing well and which ones need to be adjusted.\r\rTo calculate eCPM, you divide the total earnings from an ad campaign by the number of impressions, then multiply by 1000. For example, if an ad campaign earned $1000 from 500,000 impressions, the eCPM would be $2.\r\rSo why is eCPM important? It allows you to compare the performance of different ad campaigns, even if they have different pricing models (such as cost per click or cost per impression). By looking at the eCPM, you can see which ads are generating the most revenue per impression and adjust your strategy accordingly.\r\rTo optimize your ad revenue, it's important to focus on increasing your eCPM. This can be done by improving the targeting of your ads, increasing the click-through rate, and negotiating higher rates with advertisers.\r\rIn conclusion, understanding eCPM is crucial for maximizing your ad revenue. By tracking and analyzing this metric, you can make informed decisions about your ad strategy and ultimately increase your earnings.

Eric Gilmore

Eric Gilmore is the Founder of Creative Automatic. He started the company after spending a decade in ad tech, where he saw firsthand the performance benefits of building and testing a wide range of creative variations and how time-consuming it was to make them. Prior to starting Creative Automatic, Eric was the Lead Creative Engineer at Rocket Fuel, where he specialized in building dynamic creative optimization systems that adjusted visual compositions of ad units on the fly depending on a wide range of inputs aimed to improve campaign performance. Eric graduated from the Savannah College of Art and Design with a Master of Fine Arts in Interactive Design and Game Development.

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