Glossary

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Effective Cost per Mile

What is Effective Cost per Mile ?

An ad revenue that’s generated for every 1,000 impressions. When calculating the cost per thousand ad impressions, the effective cost per mile is identical to CPM (Cost Per Mile). Ad income generated per 1,000 ad impressions, then, is what we call Effective Cost per Mile. ECPM can play a significant role in advertising because CPM alone does not always provide a whole picture. eCPM's return on advertising investment data is more precise. The effective cost per mille (eCPM) metric shows the value of inventory based on realized earnings and usage after a period. eCPM is a method of determining the “actual” value of a publisher's advertising inventory instead of the contracted value or “sticker” pricing.

This single statistic helps publishers keep track of the efficacy of their advertising inventory regardless of the format or conversion meter they choose. You can use eCPM to find out which ad unit is the best performer and bring in the most money if your app supports full-screen interstitial and MREC placements. This information helps publishers improve their revenue strategy by optimizing the app's arrangements and making other enhancements.eCPM can be a reliable statistic for estimating the value of future impressions and analyzing the efficiency of ad placement. App bidding, for example, uses eCPM to establish the initial bid amount. Many ad networks need advertisers to agree to a minimum CPM price before an ad can be deployed.

Even nevertheless, waterfalls are becoming increasingly rare in today's computer-controlled world. Because it represents the effective value of an impression, advertisers use eCPM to measure user acquisition programs. Advertisers compute eCPM from app installations rather than revenue in these circumstances. It follows that increasing your eCPM will increase your app's earnings. While the methods for doing this may differ, the overall goal is to persuade marketers to spend more money on each impression and conversion. The publisher should use various techniques for the growth of eCPM. They should choose the right mobile and placements. They should also select the right advertising partner. Moreover, they must consider programmatic mediation.

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