eCPM stands for “effective CPM” (cost per thousand impressions).
eCPM = (Total earnings/ Impressions) X 1000
- ex: ($600/200,000 impressions )= .003 x 1000 = $3 eCPM
For Advertisers, eCPM is the maximum dollar amount they’re willing to pay per 1000 Ad impressions.
For Publishers, eCPM is a gauge that is used to compare the performance of different Ad units. The fact that eCPM includes the word “Impressions” can be confusing since the majority of eCPM calculations are based on CPC (Cost Per Click) ads.