An eCPM calculator reveals one of the most important, and interesting, metrics a website owner needs to look at. I’ll do my best on this page to explain what the eCPM is, how to calculate the eCPM, and how to optimize your eCPM.
But before we start, what is an eCPM? In a nutshell, the eCPM shows a publisher (website owner) their banner ad monetization performance. The eCPM is the revenue earned per 1000 ad impressions.
The higher your websites eCPM, the more money you are earning from your ad units.
eCPM Calculator:
Use our eCPM calculator below to determine your eCPM. Simply enter your total earnings from display ads, and the total number of impressions from those display ads, and our calculator will show you the eCPM.
What is the eCPM Formula?
eCPM = Total Ad Earnings / Impressions x 1000
In order to calculate an eCPM, you must divide the ad revenue by number of impressions and then multiply it by 1000.
The eCPM is an important metric for advertisers because it reflects how much they are spending per 1,000 impressions. Publishers will also use this calculation to determine the cost of advertising on their site or app.
What does eCPM actually mean?
eCPM stands for ‘effective cost per mille’.
The eCPM Formula is an equation that helps assess the value of ad inventory on a website. It takes into account the number of impressions, or times when an advertisement appears, and then multiplies it by the cost per thousand impressions (eCPM) to determine how much money each impression was worth.
The formula can help publishers calculate their revenue before making any decisions about what ads to show on their site. In general, advertisers want as many people to see their ads as possible which means sites with higher traffic get paid more from advertisements than sites with lower traffic.
Why is The eCPM Important?
Unless your a nutjob, you’ll want to maximise the earnings from your website. It is hard growing a site, and takes months (or years) to build the traffic, so you shouldn’t settle for a low eCPM when a bit of focus on improving it today, will pay dividends for tomorrow and beyond.
There are a few ways you can improve your websites eCPM:
- Test different banner sizes
- Optimize your ad positions
- Join a higher paying ad network (view our Adsense alternatives)
- Sell banners ads directly to brands
We cover a lot of these methods in our Monetization Method course, so be sure to start a free trial if you want to improve your eCPM.
eCPM is also an important metric to understand in Googles Ad Exchange, from an ad-buyers point of view.
Other Calculators:
- Open Rate Calculator
Our open rate calculator is super simple – all you need to do is enter the number of people which opened your email, and the number of people […] - CPV Calculator
Cost Per View (CPV) is most often used in relation to any sort of video ad, whether it be on Youtube, Facebook, or any other platform. It is […] - CPI Calculator
Cost per install is a metric that has been around for years. It’s used to measure the cost of an ad campaign in which advertisers pay each time […] - eCPM Calculator
An eCPM calculator reveals one of the most important, and interesting, metrics a website owner needs to look at. I’ll do my best on this page to explain […] - CPA Calculator
CPA (cost per acquisition) is the dollar price that an advertiser pays to acquire a customer. It is one of the most important metrics for any digital marketer. […] - CPC Calculator
Cost per click is the amount of money charged by an advertising website for every visitor directed to a banner ad, or sponsored link. It can range from […] - Conversion Rate Calculator
You conversion rate can be calculated in a number of different ways. In it’s most simplest form, a websites conversion rate is the number of online sales as […] - CTR Calculator
The click through rate (CTR) is one of the most basic, and most frequently used, metrics in the online advertising industry. CTR is used to gauge the attractiveness […]
