If you are a publisher competing for more online income, then you have definitely heard about the term eCPM, i.e.EFFECTIVE COST PER MILLION IMPRESSIONS. Actually its a term used by most professional publishers and if you are not professional then I will teach you how to become professional, learning this small industry standard short-form.

eCPM – Google Adsense

Adsense, provides you about this information in their reports which gives us a clear description of about how much we are getting after a 1000 impressions by a particular referral site. Let me clarify you a bit…

But, let me first tell you that what’s the exact formula to calculate eCPM:

eCPM Calculation

In the above formulaTOTAL EARNINGS = ESTIMATED EARNINGS as per new changes.

So, if you have nice impressions and great earnings you can easily calculate the total eCPM of a particular ad-unit, which will give you clear statistical data of how much you will earn after 1000 impressions from that ad-unit.

For example:

Total Earnings = $6.19

Impressions = 340

Total Earnings / Impressions = 0.018

eCPM = 0.018 x 1000 = $18.20

This can be a great analysis tool which can give you clear impression that if you will get 1000 impressions from a particular ad-unit or channel with a particular referral, then you will definitely earn that much of amount, as shown in the example above.

So, I recommend our readers and Adsense publishers to always use Custom Channels and Analytics Reports to montenize your site in a better way. I also give a cool advice to integrate your Adsense with your Analytics account for better analysis.

Moreover, you have to remember that great income from eCPM depends on your Impressions and Clicks, and if you succeeded in increasing these two terms for your site, then you will definitely succeed.

Its an interesting news that Adsense has changed this term to RPM now, which means Revenue Per Million impressions and resembles the same formula as specified above.