Let’s all just admit it, the ad ecosystem is overflowing with complicated terms, processes, and buzzwords, and we have serious beef with it. Our “What is?” blog posts will explain, as simply as possible, some of the digital advertising tools and processes that are notorious for being just plain confusing.
Today, we’ll outline the difference between CPM and eCPM.
Simply put: eCPM stands for effective cost per thousand and applies regardless of what buying method is being used.
You might be wondering: how’s this any different from CPM? With CPM, you’re only calculating the cost per impression, whereas eCPM is painting a more revenue-centric picture and can be applied to any buying method such as cost per acquisition, cost per click, cost per lead, etc. If this is the first time you’re hearing about it, that may be because it mainly applies to app developers and publishers.
How is it calculated?
Okay, so why don’t I see it as a metric in Choozle?
As mentioned above, eCPM is applied to the revenue per thousand impressions on the app developer and publisher side, helping to determine which type of ad inventory is earning more money.
However, even if you’re not a publisher, it never hurts to be in the loop about supply-side metrics. (Hence, this post)! If you’re interested in learning more, ironSource has a stock market-esque eCPM tracker that helps app publishers stay on top of industry numbers.