eCPM stands for effective cost per mille and is a metric used in digital advertising to measure the revenue generated per 1,000 ad impressions. It helps evaluate the profitability and effectiveness of different advertising channels and campaigns.

Significance and uses of eCPM

By calculating eCPM, advertisers can determine the true value of their ad impressions and optimize their advertising strategies accordingly. It assists in assessing the financial performance and efficiency of digital advertising initiatives.

Example of eCPM

An ad campaign generates a total revenue of $500 from 100,000 ad impressions. The eCPM is calculated by dividing the revenue by the number of impressions, resulting in $5.00. This indicates that for every 1,000 ad impressions, the campaign generated $5.00 in revenue.