This is a common question in forums. People are mystified by exactly what eCPM stand for. Well, eCPM is effective Cost per 1000 impressions. It represent the average earning which a publisher will earn for every 1000 impressions that he gets. It is easily calculated.
eCPM = earnings divided by number of impressions multiply by 1000.
What is eCPM used for? It is used to gauge the effectiveness of your ads. If you have optimised your ads properly, have good content and have used keywords effectively which attract high paying ads, you may be high earnings for clicks even though the no of clicks are low, and that will give you a high eCPM. On the other hand, if you have got low paying ads, you may be getting low earnings or even public service ads for which no earnings are given even if you are getting a high no. of impressions, then you will have a low or even zero eCPM.
eCPM and CTR (Click Through Rate) is also probably closely watched by AdSense. If you are getting very high eCPM, but a very low CTR, your earnings may have been driven up by a lot of invalid clicks from just a few impressions. This may cause AdSense to examine your account closely. However, a high eCPM with a low CTR may also mean that your site is getting a lot of high paying ads because you have keywords which attract high paying ads, or have optimized the color and the positioning of your ads. So whether Google really pay attention to your eCPM is only guesswork, but for you, it is a good indication of the effectiveness of your ads in your site.
To make the meaning of eCPM clearer, I give below some hypothetical examples below. The eCPM was calculated by using the formula eCPM = earnings divided by number of impressions multiply by 1000 (in the C2 cell, typing the formula C2=A2/B2*1000) with MS Excel:
The figures for eCPM in the last column above was calculated by Excel using the formula =a2/b2*1000 for the second row, and similar calculations were done for the earnigns in the following rows, except that they were given in 2-digit figures
Another hypothetical example:
The earnings, in an actual reports may shows $0.00, leading one to think that nothing were earned for the impressions. The figures for the earnings in the above hypothetical example above were calculated using the formula earnings=eCPMxPageImpressions/1000 in the second row. Note that if the figures rounded up to 2 digits will end up as $0.00. That however doesn't mean that you didn't earn anything even though the number of clicks is zero, but you earn an amount too small to show in the Earnings report as it was rounded up to 2 digits. You actually earned something from impressions generated which are accumulated and paid to you.
If you see 0 clicks in your report, but a non-zero figure for eCPM, and you want to know how much you earned for those impressions, you can get the earnings by using the table in this post Table to calculate your earnings from CPM ads (click "BACK" button to get back to this site).
eCPM = earnings divided by number of impressions multiply by 1000.
What is eCPM used for? It is used to gauge the effectiveness of your ads. If you have optimised your ads properly, have good content and have used keywords effectively which attract high paying ads, you may be high earnings for clicks even though the no of clicks are low, and that will give you a high eCPM. On the other hand, if you have got low paying ads, you may be getting low earnings or even public service ads for which no earnings are given even if you are getting a high no. of impressions, then you will have a low or even zero eCPM.
eCPM and CTR (Click Through Rate) is also probably closely watched by AdSense. If you are getting very high eCPM, but a very low CTR, your earnings may have been driven up by a lot of invalid clicks from just a few impressions. This may cause AdSense to examine your account closely. However, a high eCPM with a low CTR may also mean that your site is getting a lot of high paying ads because you have keywords which attract high paying ads, or have optimized the color and the positioning of your ads. So whether Google really pay attention to your eCPM is only guesswork, but for you, it is a good indication of the effectiveness of your ads in your site.
To make the meaning of eCPM clearer, I give below some hypothetical examples below. The eCPM was calculated by using the formula eCPM = earnings divided by number of impressions multiply by 1000 (in the C2 cell, typing the formula C2=A2/B2*1000) with MS Excel:
The figures for eCPM in the last column above was calculated by Excel using the formula =a2/b2*1000 for the second row, and similar calculations were done for the earnigns in the following rows, except that they were given in 2-digit figures
Another hypothetical example:
The earnings, in an actual reports may shows $0.00, leading one to think that nothing were earned for the impressions. The figures for the earnings in the above hypothetical example above were calculated using the formula earnings=eCPMxPageImpressions/1000 in the second row. Note that if the figures rounded up to 2 digits will end up as $0.00. That however doesn't mean that you didn't earn anything even though the number of clicks is zero, but you earn an amount too small to show in the Earnings report as it was rounded up to 2 digits. You actually earned something from impressions generated which are accumulated and paid to you.
If you see 0 clicks in your report, but a non-zero figure for eCPM, and you want to know how much you earned for those impressions, you can get the earnings by using the table in this post Table to calculate your earnings from CPM ads (click "BACK" button to get back to this site).
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