Is your eCPM at an all-time low? Find out three ways to get it to the top.
If you’re losing money as a publisher, you should look at your ads’ Effective Cost per Thousand Impressions (eCPM) to figure out how to get out of the hole. Do you need more assistance? As a result, we suggest three strategies for elevating this key performance indicator (KPI) to the top.
You will be able to optimize your ad formats and comprehend the significance of eCPM for the expansion of your plans for monetization using these strategies.
What is eCPM?
Taking into account the revenue you receive per thousand impressions, this KPI measures the effectiveness of the advertisements. It is essential to determine whether a campaign contributes to publishers’ goals.
When you ask a digital marketing specialist about an eCPM, they will tell you that it is the most accurate way to measure how well your plans for monetization are working. You can estimate future earnings by comparing ad unit performance.
Simply put, when we talk about the meaning of eCPM, we are referring to an indicator that looks at the conditions for monetization. You can evaluate two important aspects to project and increase your earnings using this variable:
1. Your ads’ monetization performance: The more likely it is that users of your app will become leads or customers of a brand, the higher your eCPM.
2. A specific campaign’s scope: In advertising networks, a higher eCPM means greater advantages. Your impressions will rise as a result of ads appearing first and most frequently.
What does eCPM entail?
Using this indicator, you can take into account things like your audience’s reach, user engagement, your application’s type of advertisement, and your geographic location.
Additionally, you can compare ad unit performance and user gain and set conditions for ad networks. But what exactly is an eCPM? It would be necessary to break down its most common uses among publishers in order to better comprehend it. Consider the following three points:
1. Establish a bare minimum for advertising networks.
If you are curious about what an eCPM is, you should know that this key performance indicator enables you to establish a baseline for an ad network to advertise in your app if you participate in cascading bids. The minimum eCPM is this number.
2. Compare how ads perform.
You should think of it as a tool for evaluating the performance of advertising units in various regions, ad networks, and locations, among other things. Understanding the meaning of eCPM is made easier by analyzing these variables.
3. Earnings from project monetization
This KPI lets you predict how much money you’ll get and determine which ads perform best when testing them for your app. Additionally, it enables you to target strategies to enhance ad interaction.
What makes CPM and eCPM different from one another?
We need to distinguish it from Cost Per Thousand Impressions (CPM) in order to comprehend the meaning of eCPM. Advertisers use this final indicator to decide where to publish their ads and how much they are willing to pay per thousand impressions.
The total expected impressions are divided by the campaign’s cost to arrive at the figure. This operation yields a number multiplied by 1,000.
Instead, eCPM focuses on figuring out how much publishers make from seeing ads in their apps. In a way, it’s a combination of several CPM calculations.
How can eCPM be calculated?
Now that you know what an eCPM is, you’ll see that all it takes to figure it out is a simple calculation. This is how it works:
| eCPM = total revenue / impressions * 1,000 Let’s say an advertisement with 70,000 impressions brought in $500. The calculation would then be as follows:
500 divided by 70,000 is 0.0071 times 1,000, or 7.14. You received $7.14 for each 1,000 impressions of that advertisement. You will be able to determine which advertisement is performing the best for you if you obtain the eCMP of several of them.
The meaning of eCPM is more than just a number; there are three ways to boost it to the top. Consider these three ways to increase it because it is an effective indicator for improving your performance as a publisher.
1. Increase your ads’ visibility.
Consider this in order to combat the phenomenon of blindness through online advertisements. How can you proceed? Optimize your ads for mobile devices, review their size, position, and format, and speed up your application’s loading time.
2. Make use of various ad formats.
Because of this, your application will be more dynamic, which will give you an advantage over users and advertisers. Be first with the most engaging creatives and collaborate with your team to incorporate new ideas.
A/B tests can also be used to determine which one performs best.
3. Make use of Header Bidding systems to sell your ads.
You can advertise your ad inventory in real time and sell it to the advertiser who offers you the best price using header bidding. It is a well-known programmatic bidding technology that is known for being transparent and effective.
In conclusion, this is the most critical information you need to know in order to increase your eCPM. This KPI is one of the fundamental methods for determining whether or not your ads are earning you money. It helps you determine how well your ads are monetizing and how far a particular campaign has spread.
_What is an eCPM? Set a minimum eCPM for ad networks and compare the performance of ad units to help increase your earnings rather than asking the same question over and over again.
_Would you like to increase your eCPM? Therefore, use various formats, increase your ads’ visibility, and offer them through Header Bidding systems.