January 24, 2008
Posted by quicklearner
What is the difference between CPM (cost per thousand), eCPM (effective cost per thousand) and RPM (revenue per thousand)?
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January 25, 2008
Posted by Jr2inla
( 1 rating )
eCPM - is used more often, when your site is the one that displays the ads, Google Adsense, for example, uses this as a way for you to do comparisons between different types of ads that you test on your site. It's calculated like so:
" eCPM is calculated by dividing total earnings by total number of impressions in thousands. It is a great performance measure for your various ad units, so when experimenting, you can use eCPM to compare your results." (from the Inside Adsense Blog) http://adsense.blogspot.com/2006/02/ecpm-what-exactly-is-that.html
RPM - is purely - how much money is being generated for every thousand times an Ad is shown.
Comments
- LifesaPretzel: What does the M stand for? I always thought million but if we are talking 1000 (thousand) that doesn't add up.
- quicklearner: The M stands for the roman numeral of 1000. its confusing cause now a days its also used for million!
- quicklearner: Thanks Jrinla......so essentially eCPM and RPC should have the same calculation right (earnings/impresssion*1000)??
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