Effective cost per mille

Effective cost per mille, or eCPM, is a fancy computer term used in advertising.

It's like playing a game with your friends and each of you has a different way of keeping score. In advertising, eCPM is the way advertisers keep score of how much money they make for every 1,000 times their ad is viewed by someone online.

Think of it like this: Imagine you have a lemonade stand and you sell a cup of lemonade for $1. Now let's say you have four customers who come and buy a cup of lemonade each. You just made $4. Simple, right?

Now if you had a thousand customers, how much money would you make? You'd probably make a lot more, but it might be harder to keep track of. So, instead, you would count how much money you made per 1,000 cups of lemonade sold.

In advertising, it's the same idea. Advertisers want to know how much money they make for every 1,000 times their ad is viewed. This is called eCPM.

Now, there's a bit of math involved to calculate eCPM, but it's not too hard. Remember that for advertisers, they want to know how much money they make for every 1,000 ad views.

So, they take the total revenue they earned from the ad and divide by the total number of ad views, then multiply by 1,000. This gives them their eCPM.

For example, let's say a website displays an ad and earns $2 for every 100 impressions (impression means when an ad is shown to someone). To calculate eCPM, you would do this math:

2/100 x 1000 = $20

So the eCPM in this case is $20, meaning the advertiser makes $20 for every 1,000 ad views.

And that's how eCPM works - it's a way for advertisers to keep score of how much money they make for every 1,000 times their ad is viewed online.