What are the different meanings of CPM

eCPM

The English abbreviation eCPM stands for in online marketing effective cost per mille impressions and translated into German means effective costs per thousand impressions. An alternative name is effective cost per thousand impressions. The eCPM describes the amount of advertising income for 1000 page or advertising material views and is used as a key figure in performance marketing. The key figure that is also used in online advertising for planned advertising measures is incorrectly used effective price for thousands of contacts (eTKP) or Cost per mille (CPM) is often considered a synonym for eCPM. However, CPM is the amount of money to be used so that 1000 people view the respective advertising measure or call up a specific page.

Table of Contents

Working principle

The eCPM is used to convert the display or campaign resulting Sales to calculate using the impressions (visual contacts). So when a user visits a website that has online advertising, the AdServer receives a request at that moment. Then a suitable Advertising Materials sent back and visually presented to the user as an image. Which ad is shown, however, depends on settings, such as for contextual targeting or behavioral targeting. As soon as the user sees the ad, this counts as an impression and is taken into account in the respective billing model.

For a reliable and efficient measurement of the Ad performance Thousands of impressions are examined from large websites. This procedure helps advertisers to check the success or failure of their implemented advertising measures. The display of the eCPM is flexible in that it can include other billing models. On clicks (Cost per click) or actions (Cost per action) -based billing is carried over in impressions and ultimately appears as an integrated value. However, some configurations require ecommerce tracking and linking of various Google products. Basically, it can be said that the eCPM in marketing is not only for Comparison of revenue levels is used through various forms of remuneration, but also to calculate the effectiveness of different advertising media. In this way, marketing-relevant statements can be made about the Use of advertising measures do.

Calculation from the eCPM

The eCPM enables a comparison of the effectiveness between advertising media. Used as a control figure in performance marketing, it is used to compare the ad performance of different positions. If a company wants to get an idea of ​​the current ad performance, however, based on the Page ImpressionsNumber does not have a large sample, so it still makes sense to use the eCPM formula analyze your own ad performance. The results obtained in this way are generally considered useful in order to be able to make reliable statements about the performance.

The eCPM is calculated as follows:

 

Calculation example

The website of a fictional company scores with two advertisements in Google Ads within one month the following number of Page views or impressions:

Advertising banners eins achieved 50,000 page views and a total of 50 euros in revenue. This corresponds to an eCPM of 1 € in total.
Advertising banner two achieved 75,000 page views and a total of 100 euros in revenue. This corresponds to a total eCPM of € 1.33.

On the basis of the present values ​​it can be determined that the second advertising banner achieves better results because it is pro Page impression earns more revenue than the first banner ad. As a result, the second advertising banner is more effective and should, for example, preferably be used on the company's website to ensure an increase in sales.

Importance of eCPM in online marketing

Due to the numerous billing models that exist in online marketing, a comparison between ads, channels and campaigns is extremely complicated. In the meantime, a version of the eCPM value based on impressions or a thousand impressions supports. In this way, the various billing models are made comparable and their performance can be assessed. The complexity of each individual system is initially an obstacle, by which is meant that the eCPM values do not always work consistently. For this reason, the determination of this value requires a meticulous assessment of its calculation. The rule here is that capturing the most relevant key figures and optimizing them are all the more complicated, the more complex it is Advertising network is. No general statements can be made about which specific advertising network is undoubtedly the most suitable for which website. The scored sales In this context, a website can be of assistance in deciding on a suitable network. So the effort associated with a complex advertising network would only be reduced Margins worth several hundred to a thousand euros in sales.

Other important KPIs:

swell