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eCPM is an acronym meaning Effective Cost Per Thousand. This is used by Internet site owners and advertisers to measure which ads and sites perform the best and which ones need to be improved. Figuring out your eCPM will tell you how much you are earning from every 1,000 impressions or views of your ad or website. If you would like to know how to calculate eCPM, follow these steps.

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Steps

  1. Calculate Ecpm Step 1.jpg
    1
    Figure out how many impressions or views the ad or website had in the past year.
    • Research and download a program for tracking impressions online. Several websites provide software that enable you to track your ad or website traffic.
      Calculate Ecpm Step 1Bullet1.jpg
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  2. Calculate Ecpm Step 2.jpg
    2
    Add the earnings made from the advertisement or website for the past year. For example, over the past year, your ad or website generated $175 in revenue.
  3. 3
    Calculate your eCPM.
    • Divide your annual earnings by the impressions or views. For example, if your ad received 10,000 views over the course of a year, then divide the $175 revenue by 10,000 views. This will give you $0.0175.
      Calculate Ecpm Step 3Bullet1.jpg
    • Multiply the new revenue number by 1000. For example, multiply $0.0175 by 1000. This will give you $17.50, which is your effective cost per thousand or eCPM.
      Calculate Ecpm Step 3Bullet2.jpg
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Tips

  • eCPM doesn't have to be calculated with yearly amounts. It can be calculated with daily, weekly or monthly amounts. To calculate the money you've made and the number of hits you've had for a week, use the same formula as above for calculating eCPM.
  • There is no benchmark number that qualifies an eCPM reading as being good or bad. Rather, eCPM is used to determine decline or improvement of the effectiveness of an ad or traffic on a particular website over time.
  • The program you use for your ad or website may allow you to track hits. Determine whether your current website program has this feature before searching online for software that enables you to track your website traffic.

Warnings

  • Do not divide the amount of views by your revenue. This will give you the wrong eCPM. For example, using the numbers above, if you divided $175 into 10,000 views, your result would be $57.14. This number then multiplied by 1,000 would give you $571,400, which is an incorrect eCPM.

Things You'll Need

  • Calculator
  • Program or software to track views
  • Computer
  • Advertisement or website


Related wikiHows

How to
Calculate CPM

Sources and Citations

Article Info

Categories: Online and Home Businesses

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