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What is: eCPMAdrian Singer, 08-30-2007 |
eCPM is calculated by dividing total earnings by total number of impressions in thousands. It is a great performance measure for your various ad units, so when experimenting, you can use eCPM to compare your results.
eCPM is very powerful, yet it is often ignored by newbie publishers.
If you're monetizing your site using contextual-ads or in-text ads, one of the best ways to avoid SmartPricing and continually increase your bottom line, is to test different landing pages, different ad units and different content, by testing the eCPM for several channels.
For example, let's say you have two custom channels named 'Blue Skyscrapers' and 'Red Rectangles', which reflect the types of ad formats you're testing on.
During your test, the 'Blue Skyscrapers' channel receives 370 page impressions and $1.48 in total earnings. The 'Red Rectangles' channel receives 187 page impressions and $0.97 in earnings over the same period.
eCPM for blue skyscrapers is $4.00 while the eCPM for red rectangles is $5.18.
This means if we received 1,000 impressions of blue skyscrapers, we would earn roughly $4.00. But for 1,000 impressions of red rectangles, we would earn about $5.18. Therefore, assuming that our sample size is large enough, it is to our advantage to switch to red rectangles throughout our site because they generate more revenue per impression.
Use eCPM is your earning's performance indicator and keep testing ads,content,placement to increase your eCPM thereby increasing your bottom line.
eCPM is very powerful, yet it is often ignored by newbie publishers.
If you're monetizing your site using contextual-ads or in-text ads, one of the best ways to avoid SmartPricing and continually increase your bottom line, is to test different landing pages, different ad units and different content, by testing the eCPM for several channels.
For example, let's say you have two custom channels named 'Blue Skyscrapers' and 'Red Rectangles', which reflect the types of ad formats you're testing on.
During your test, the 'Blue Skyscrapers' channel receives 370 page impressions and $1.48 in total earnings. The 'Red Rectangles' channel receives 187 page impressions and $0.97 in earnings over the same period.
eCPM for blue skyscrapers is $4.00 while the eCPM for red rectangles is $5.18.
This means if we received 1,000 impressions of blue skyscrapers, we would earn roughly $4.00. But for 1,000 impressions of red rectangles, we would earn about $5.18. Therefore, assuming that our sample size is large enough, it is to our advantage to switch to red rectangles throughout our site because they generate more revenue per impression.
Use eCPM is your earning's performance indicator and keep testing ads,content,placement to increase your eCPM thereby increasing your bottom line.
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