eCPM Calculator

| Added in Business Finance

What is eCPM?

eCPM (effective Cost Per Mille) is a metric used in digital advertising that represents the cost per 1,000 impressions. It helps advertisers and publishers evaluate the effectiveness and profitability of their ad campaigns.

Formula

$$\text{eCPM} = \frac{\text{Total Ad Spend}}{\text{Total Measured Impressions}} \cdot 1000$$

Where:

  • Total Ad Spend is the total amount spent on advertising (in dollars)
  • Total Measured Impressions is the total number of times the ad was displayed

Example Calculation

If you spend $5,000 on an ad campaign that generates 200,000 impressions:

$$\text{eCPM} = \frac{5{,}000}{200{,}000} \cdot 1000 = 25$$

The eCPM would be $25 per 1,000 impressions.

Frequently Asked Questions

eCPM (effective Cost Per Mille) is a metric that shows how much you pay per 1,000 ad impressions. It helps advertisers and publishers evaluate campaign effectiveness and compare different advertising channels.

eCPM is calculated by dividing total ad spend by total impressions, then multiplying by 1,000. The formula is: eCPM = (Total Ad Spend / Total Impressions) x 1000.

Good eCPM varies by industry, platform, and ad format. Display ads typically range from $0.50 to $5, while video ads can command $10-$30 or more. Compare your eCPM to industry benchmarks for meaningful analysis.

CPM is the fixed rate advertisers agree to pay per 1,000 impressions, while eCPM is the actual effective rate calculated after a campaign runs. eCPM accounts for all revenue sources and provides a more accurate performance measure.