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.
