Optimize Ad Inventory : CPM and eCPM help publishers optimize their ad inventory.By setting a CPM or eCPM rate, publishers can ensure that they are earning revenue for every impression served, even if they don’t sell the ad space directly. Monetize All Impressions : CPM and eCPM help publishers monetize all of their ad impressions.This allows publishers to plan their revenue streams and make better business decisions. With CPM, publishers know exactly how much they will earn for every thousand ad impressions served. Predictable Revenue : CPM and eCPM provide a predictable revenue stream to publishers.Here are some of the benefits of using CPM and eCPM as a publisher: Benefits of Using CPM and eCPMĬPM (cost per thousand impressions) and eCPM (effective cost per thousand impressions) are important metrics used in digital advertising to measure the revenue publishers earn for their ad space. The formula for eCPM is written as:ĮCPM = (total earnings/number of impressions) * 1000įor example, if the total earnings are $500 and the number of impressions is 10,000, then the eCPM would be:ĮCPM is a useful metric because it allows advertisers to compare the revenue earned from different advertising campaigns, even if the campaigns have different CPMs. To calculate eCPM, you need to divide the total earnings by the total number of impressions and then multiply the result by 1000. In other words, it estimates how much money an advertiser earns for every thousand ad impressions served. The formula for CPM can be written as follows:ĬPM = (Cost of advertising / Number of impressions) * 1000įor example, if the cost of advertising is $100 and the number of impressions is 10,000, then the CPM would be:ĬPM = ($100 / 10,000) * 1000 = $10 What is eCPM?ĮCPM stands for “effective cost per mille,” a metric used in digital advertising to measure the revenue earned per thousand impressions. To calculate CPM, you need to divide the cost of advertising by the total number of impressions and then multiply the result by 1000. eCPM, on the other hand, stands for effective cost per mille, a metric used to measure the revenue earned per thousand impressions. What is CPM?ĬPM stands for cost per mille, which means the cost per thousand impressions. While they are related, they serve slightly different purposes and are used together to optimize ad revenue. Publishers can use CPM (Cost Per Mille) and eCPM (Effective Cost Per Mille) as ad revenue models to monetize their websites or app.

Cost per mille formula