Definition & Explanation

Effective CPM (eCPM) is the revenue earned per 1,000 impressions, calculated across different buying models such as CPM, CPC, and CPA. It is computed by dividing total earnings by total impressions and multiplying by 1,000. Unlike CPM, which is an advertiser-side pricing metric, eCPM is a publisher-side measurement tool that accounts for every opportunity to serve an impression, making it essential for comparing inventory performance.