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CPM & eCPM

Wadiwala

New Member
affiliate
What is CPM how it is calculated?

The whole affiliate industry is mostly working on Video Advertising based on YouTube earnings, Defined as CPM stands for “cost per mille” (In Latin Mille is also known as ‘thousand’, so CPM is also defined as “cost per thousand”) CPM is the amount an advertiser pays for each impression on run on a video 1000 times. Is an add run on a video is cost for $1.00 so advertiser will pay $1.00 for every 1000 impression of that ad, Thus the ad is defined as an impression ad.

The resolution of the CPM metric is to compare costs of different advertising campaigns within and across different media. This can reach unique, potential users among st various location and media


What is eCPM how it is calculated?

eCPM meaning as ‘effective cost per thousand’ eCPM is counted on the revenue and views of your CPM Campaigns for that particular period, i.e. if your CPM campaign received 50,000 visitors in last 15 days you earned $100 from that ad So eCPM will be calculated as divide your earning with the total number of views you got on your ad and multiply it with 1000. This way you will get your eCPM amount.


$100 ÷ 50,000 × 1000 = $2


If in case your CPM ad receives low value then definitely your eCPM will be low, such that not at all views are monetized, eCPM is there to calculate the effectiveness of affiliate’s traffic inventory that is sold on CPM and many other different model as CPA, CPC, and CPS etc.



To conclude here I would like to tell you the above basic knowledge you all know very well but my purpose behind this blog is that I was having bit confusion about CPM and eCPM, so I decided to do some research about this topic and write on my own so maybe I can get clear idea about these affiliate models as well
 
Thank you for you explanation. I knew what CPM was but your explanation and calculation of ecpm was very clear. My follow up question to you would be after you calculate your ecpm what would that mean? did you spend $2.00 per 1000 impressions to make 100.00?

Thanks again.
 
MI
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