Effective Cost Per Mile, also known as eCPM is an affiliate marketing term that measures the overall revenue, which is generated from various marketing channels. In other words, it estimates the ad efficiency regardless of the format used. As a rule, it helps marketers to better understand the most valuable ad placement, track the monetization campaigns and evaluate the ad monetization performance in general.
The formula for calculating the effective cost per mile is easy as an A: divide the ad revenue earnings by the total number of impressions provided and multiply the result obtained by 1000 (that’s the number of the ad impressions served).
Unlike the traditional CPM that is basically focused on estimating for advertisers the costs of serving 1000 ad impressions, eCPM also covers measuring the inventory efficiency, no matter which performance metrics are used (impression or any other more suitable for a specific campaign).
There are numerous effective ways of how the eCPM can be boosted:
- Select the best ad placement to find the one that works best for your ad campaign. To check this, marketers say that a perfect option to use is the A/B testing.
- Find the right ads partner with high-quality and more creative advertising.
- Experiment with the ad formats to figure out which ones are the most effective for your audience.
