What is Ecpm
Ecpm is the effective cost per thousand impressions and basically what it refers to is the amount of revenue you earn from AdSence for every 1000 impressions you show on your site.
What influences eCPM
Ecpm is influenced by two different factors. One is CTR (CLİCK THROUGH RATE), which is how often users click on ads. The other is CPC (COST per click) which is how much an advertiser is willing to pay for any given click. Of these two, CTR is something publishers can influence because the more prominent position you give your ads, the more likely you are to generate a click, which means you will earn revenue for that click. CPC is determined by who much advertisers are willing to pay for that click and that really varies based on content. For example, if you have 2 different types of content- gold watches and cat food. It’s more likely that an advertiser will value the gold watch over the cat food and will be willing to pay a little bit more.
How does web traffic impact eCPM
eCPM is likely to be impacted by traffic because when you compare eCPM from today from eCPM two years from now, you aren’t comparing the same thing because the makeup of your traffic will be different for these two periods of time. I have seen cases where a web site has seen a lot of international growth, and that international traffic might not monetize as well as domestic. For example, If I a am working with one publisher who had seen a slight decrease in her eCPM over the past 2 years, despite her revenue had increased substantially. What we saw was that a lot of her traffic was coming from countries outside of the US such as Latin America and Asia and generally cost per click is driven by purchasing of the user in any given country. As a result, even though she was making more revenue, her eCPM had decreased slightly but that was mostly because of the makeup of her traffic.