What are CPM & eCPM?

Cost-Per-Mille (CPM) is a payment model used in mobile app and game advertising that charges the buyer per mille (1000) impressions delivered within the publisher’s mobile app. 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

Learn more about eCPM and why it matters, whether you’re publisher or advertiser.