Ad Request eCPM can be calculated by dividing the total revenue by ad requests and multiplying the answer by 1000. Hence, ad networks with high CPMs but low fill rates are often disadvantaged. Unlike eCPM, Ad Request eCPM takes into account the fill rate. The eCPM to the publisher is $5.60 eCPM vs Ad Request eCPMĪd Request eCPM refers to the amount of revenue generated for each request made for a creative.
That agency offers a publisher $5,600 to service those impressions (retaining 30% revenue share). However, CPM is more accurately used to describe the cost to advertisers, which is usually not what the publisher receives.Įxample: An advertiser buys 1,000,000 impressions through an agency at a cost of $8,000. It’s not unusual to see publishers using CPM where it would be more accurate to use eCPM. Comparison to other Per Mille metrics eCPM vs CPM This equates to an eCPM and an average CPM of £0.67p per 1000 ad impressionsĪs we can see, selling more impressions for a lower CPM has generated more revenue overall than the £2 CPM for which only 1000 impressions were sold. In total, the publisher earned £6 for 9,000 ad impressions. The final one thousand impressions are not sold. One thousand are sold for £2 CPM which equates to £2 ad revenue (1000/1000 = 1 x £2 = £2). Eight thousand impressions are sold at £0.50p CPM which earns £4 ad revenue (8000/1000 = 8 x £0.50p = £4). Let’s look at a different scenario:Ī publisher has 10,000 impressions to sell.
impressions, eCPM illustrates to the publisher the average value of 4000 impressions. If 2000 ad impressions were sold for each ad unit, the publisher would earn £5 in total, bringing the effective CPM of the impressions on that page to £1.25.Īlthough none of the advertisers actually paid £1. eCPM is calculated by dividing the total ad revenue by the total number of ad impressions and then multiplying the answer by 1000:ĮCPM = (Total Ad Revenue / Total Impressions) x 1000Ī publisher has two ad units on a page, with one receiving a CPM of £2 and the other £0.50p. To calculate eCPM, you need to know total ad revenue earnings and total impressions for a given piece of inventory or trafficking. eCPM is used to measure the performance of inventory and of campaigns. It stands for ‘effective cost per mille’ and represents the average revenue generated for every 1,000 impressions served. What are the limitations of eCPM? What is eCPM & why is it useful?ĮCPM is the publisher’s measure of what they are getting paid for the impressions that they serve.
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