What is eCPM for mobile apps?

Definition

eCPM (effective cost per mille) is the ad revenue an app earns per 1,000 ad impressions — the standard way to compare ad networks, formats and countries.

Formula

eCPM = ad revenue ÷ ad impressions × 1,000

“Mille” is Latin for thousand. eCPM is “effective” because it converts any pricing model — per click, per install, per view — into one comparable number: revenue per 1,000 impressions.

Example

A puzzle game shows 150,000 interstitial ads in a week and earns $450.

eCPM = $450 ÷ 150,000 × 1,000 = $3.00

The same week, 60,000 rewarded video impressions earn $720: eCPM $12.00. Rewarded videos usually earn much more per impression because users choose to watch them.

What affects eCPM

eCPM isn’t the goal

A higher eCPM from more aggressive ads can cost you users. Look at ad revenue per daily active user (ARPDAU) and retention together, and read reviews after changing ad placements — “too many ads” is one of the most common complaints in app reviews and a common reason for churn.

For apps with purchases, compare with ARPU and ARPPU, and see how much a user is worth over time with lifetime value.

FAQ

How do you calculate eCPM?

Divide total ad revenue by the number of impressions and multiply by 1,000. $450 from 150,000 impressions is an eCPM of $3.00.

What is the difference between CPM and eCPM?

CPM is the price an advertiser pays per 1,000 impressions. eCPM is what a publisher (your app) actually earns per 1,000 impressions, whatever the pricing model behind it.

Why is my eCPM lower in some countries?

Advertisers pay more to reach users in markets with higher purchasing power, so eCPMs in the US, UK or Germany are usually much higher than in emerging markets.