What does eCPM stand for?

eCPM stands for Effective Cost-per-Mille, which refers to the effective cost that an advertiser pays per one thousand impressions of their ad. This metric is crucial for digital advertisers because it provides a standardized way to evaluate the performance of various advertising campaigns and ad formats across different platforms.

By calculating eCPM, advertisers can compare the profitability and effectiveness of their advertising efforts regardless of the billing methods (e.g., cost-per-click or cost-per-impression) used in different campaigns. A higher eCPM indicates better revenue generation for the publisher and effective ad performance for the advertiser, making it a key metric in assessing and optimizing digital advertising strategies. Understanding eCPM allows marketers to make informed decisions about where to allocate their ad spend for maximum return on investment.