eCPM is the “effective Cost Per Thousand Impressions”. It is a standardized measure to compare different impression ad campaign’s effectiveness. The formula is (ad spend /the number of impressions generated) * 1000. Maximize the number of impressions or minimize the cost, then you have a better eCMP. Marketers and advertisers tend to favor eCPM as the KPI of choice, as it sets an even bar for all ads to be compared against. Let’s get to it, with our top 6 hacks, that we have tried and tested and we know works!
with M being the Roman numeral for 1,000), or sometimes equivalent Cost Per Thousand (they are the same thing). This means that it is effectively what you would have paid if you were using a CPM model.
We have provided a useful eCPM Calculator below to work out your eCPM as well as derive the number of impressions and cost you would need to get a specific eCPM.eCPM is a term that’s thrown around quite often in the mobile advertising world. But it can be quite confusing, especially for new developers looking to monetize their app through in-app advertising. Let’s take a look at what it means and why it matters for app developers.
What is eCPM?
eCPM is a metric used to measure an app publisher’s ad monetization performance. It means “effective cost per thousand impressions,” which in layman’s terms is the ad revenue generated per 1,000 ad impressions.
Why is eCPM important for app developers?
eCPM helps app publishers evaluate and optimize their monetization strategy by letting them compare ad revenue generated across multiple variables, such as ad network, region, operating system, location, etc.
How can you increase eCPM?
To increase your eCPM, think that eCPM is your Click-Through-Rate * Conversion Rate * Revenue per Conversion * 1,000. If you manage to increase any of these factors, even a single one, your eCPM will increase as well. The easiest factor to improve is your Click-Through Rate (CTR).
If you use banner ads in your mobile app, you can boost your CTR by experimenting with ad placement and ad sizes. Try placing the ad at the top of the screen and then compare the results with placing the ad at the bottom of the screen. Test how different ad designs perform for you and experiment with sizes. There is no universal recipe on which sizes and color schemes work because it all depends on your users and your app.
Remember that ad conversion depends on its relevance to the user, its optimization, and timing if you use full-screen ads.
eCPM Hack #1 – Viewable Impressions
This hack might actually end up raising your eCPM, but your “effective” cost per mile, will be more “effective”. Why? Because viewable impressions only count impressions that were above the fold, e.g. loaded onto the person’s computer screen, and not below the fold and unviewable. Regular impressions, such as impressions, ad impressions and page impressions are counted when the ad is merely loaded onto the webpage.
eCPM Hack #2 – Elimiate Ad Fraud
Ad stacking, pixel stuffing are two of the most common types of impression ad fraud, and the aim is to falsely inflate advertisers impressions. Emphasis on the ‘falsely inflate’. Ad stacking, is when ads are stacked on-top of each other. Although only one ad is viewable, all the ads are counted as an impression.
Pixel stuffing follows a similar method. This is concealment by size. Advertisements are reduced to minuscule sizes, undetectable by the human eye, and simply placed in other advertisements. Again, although these are not viewed, they are still counted as impressions. These, will be impressions that advertisers are paying for, and sub-publishers, affiliates, MMPs and ad networks will also be profiting from.
So, if you’d like to keep a handle on your eCPM costs, the first way is to reduce the amount spent. This can easily be done by eliminating fraudulent impressions that never occurred.