CPM & eCPM
What are CPM & eCPM?
Cost-Per-Mille (CPM) is a payment model used in mobile game advertising that charges the buyer per mille (1000) impressions delivered within publisher’s mobile games. This is the most commonly used online advertising payment model.
Effective Cost Per Mille (eCPM), is a closely related metric that calculates how much revenue a publisher earns per 1000 impressions.
Why are CPM & eCPM important?
CPM is an important KPI for both game developers and advertisers, providing a monetary value for ad inventory. This allows developers to identify what they will get paid per 1000 impressions, and advertisers to determine what they will pay per 1000 impressions.
eCPM, or effective cost per mille, allows publishers to identify whether the ads served within their app are effective and are generating installs.
How to calculate CPM
Cost / impressions *1000
How to calculate eCPM
Total ad revenue / total ad impressions *1000
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