Cost Per 1000 Impressions CPM = (total ad campaign cost/total ad impressions) x 1000
Effective Cost per 1000 Impressions eCPM = (total ad revenue/total ad impressions) x 1000
eCPM helps publishers to predict their future revenues.
Significance of eCPM?
CPM helps advertisers forecast the cost of their campaigns and the audience they will reach with their total budget. By calculating the revenue generated per 1,000 impressions, the publisher metric known as eCPM helps to ease those issues.
CPM and eCPM are measurements that benefit both publishers and marketers.
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