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(Article) What are CPM, eCPM and RPM ? Read This to Understand Those

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Firstly, i would like to brief explain about what is the Traffic term in online marketing industry. Imagine THE INTERNET is like roads, streets, etc, while houses, stores, malls, etc just like websites. Than, the traffic term is to determine how much visitors (you could say how popular) that reading, watching or even only viewing, that’s why the term is Traffic. Then, let’s read below about CPM, eCPM and RPM. May this beneficials for us.


WHAT IS CPM

The term of CPM is abbreviation of Cost Per Mile (Thousand). The term of CPM is for advertisers. In Online Marketing Industry there are plenty ads networks companies. They accept people (Advertisers) to pay them then they (Ads Networks) pay us (website owners) with some few formulas.
Look below image the formula :

This the examples to calculate it, let’s say you pay $1000 to an ads network for an ad campaign, then after sometime you got 1000000 impressions to your ad campaign brought by a publisher. Then, the CPM = ($1000/1000000) x 1000 = $1. The $1 is how much you pay the publisher.

WHAT IS eCPM

The term of eCPM is abbreviation of effectiveCost Per Mile (Thousand). The term of eCPM is for advertisers. Some people consider it as formula to calculate your avg. for 1000 impressions brought by multiple publishers when you pay to multiple ads networks. Look below image for eCPM :

I think above image is clear enough. While there is another formula : (($1/1000)+($0.5/1000)/2)x1000= $0.75. If you as an advertiser the $0.75 is the avg. cost per 1000 impressions that you pay to multiple ad networks.

This eCPM formula could be use to you if you as publisher when you have a website or blog then place multiple codes from multiple ads networks. Then, the $0.75 is the avg. earnings for you from multiple ads networks if you as a publisher.
Okay, the last is RPM.

WHAT IS RPM

The term of eCPM is abbreviation of Revenue Per Mile (Thousand). The term of eCPM is for publishers. It’s the ratio of how much your revenue as a publisher. The difference is word Cost (alphabet C) replaced with “R”.
Look below image for eCPM :

Let’s say you earns $1000 and you brought 1000000 impressions. Then, the calculation : RPM =($1000/1000000)x1000=$1.The $1 is your earnings from 1000 impressions you brought.
Okay, that’s about RPM.

THE CLOSING

…Okay, i think that’s all this article…
…May this article beneficials for you and me…
…Thank you for read…

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