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Glossary of Mobile Advertising Terms

eCPM (Effective Cost Per Mile)

What is eCPM (Effective Cost Per Mile)?

eCPM (Effective Cost Per Mile) is similar to CPM (Cost Per Mile) and it’s used to measure the cost of every thousandth ad impression, regardless of the buying method. Basically, it’s ad revenue generated per 1,000 ad impressions.

Why is eCPM an important measurement?

Sometimes you can’t get the whole picture by just using CPM and that’s why eCPM plays an important role in mobile advertising (or in advertising in general).

With eCPM, advertisers can get more accurate results on their return on advertising investment, and as such can make more educated decisions.

How is eCPM calculated?

eCPM is calculated by dividing the total earnings with the total number of impressions and then multiplying that result with one thousand. eCPM is especially useful when different pricing methods are used since you can basically convert everything to a common metric, as you only need the total earnings and the total number of impressions to calculate eCPM.

eCPM is a good starting point for measuring the success and effectiveness of a campaign. High eCPM would mean that the ads served (in the app for example) are doing their job and converting users. Placement and use of different types of ads (banners, video, etc.) also play a role in increasing your eCPM.