CPM, CPI, PPC, CPA, CTR and ECPM in AD serving logic

CPM, CPI, PPC, CPA, CTR and ECPM in AD serving logic

Many people wondering what is CPM, CPI, PPC, CPA, CTR and ECPM concepts. As I worked on ad serving projects so I created some points these concepts. I worked in to admedia domain for some years. I worked with openx adserver technology. I am going to give you very brief ieda about CPM, CPI, PPC, CPA, CTR and ECPM logics.

CPM, CPI, PPC, CPA, CTR and ECPM in AD serving logic

First I am going to give small description and brief about same.

CPM, CPI, PPC, CPA, CTR and ECPM in AD serving logic
CPM, CPI, PPC, CPA, CTR and ECPM in AD serving logic

CPM – Cost per thousand
CPI – Cost Per Impression
PPC – Pay per click
CPA – Cost Per Action
CTR – Click-through rate
ad serving
Click fraud
Cost Per Click
View-through rate
Clicktag

Breif description is helpful for common people as well as developers.

Impression – Per Page Views( per Page loads)
Click – Per ad click
CTR (Click through rate)
Click-through rate or CTR is a way of measuring the success of an online advertising campaign. A CTR is obtained by dividing the “number of users who clicked on an ad” on a web page by the “number of times the ad was delivered” (impressions).

Formulae:
CTR (%) = (Clicks/Impressions)*100

For example, if a banner ad was delivered 100 times (impressions delivered) and one person clicked on it (clicks recorded), then the resulting CTR would be 1 percent.
CTR (%) = (1/100)*100 = 1%

CPM (Cost Per Thousand Impressions)
The CPM model refers to advertising bought on the basis of impression.
The total price paid in a CPM deal is calculated by multiplying the CPM rate by the number of CPM units.

Formulae:
CPM unit = (Impressions/1000)
Total Price ($) = CPM unit * CPM rate ($)
Per Impression cost ($)= CPM rate ($) / 1000

For example, one million impressions at $10 CPM equals a $10,000 total price.
1,000,000 / 1,000 = 1,000 units
1,000 units X $10 CPM = $10,000 total price

The amount paid per impression is calculated by dividing the CPM by 1000. For example, a $10 CPM equals $.01 per impression.
$10 CPM / 1000 impressions = $0.01 per impression

ECPM (Effective Cost Per Thousand Impressions)
eCPM is calculated by dividing total earnings by total number of impressions in thousands.
It is a great performance measure for your various ad units, so when experimenting, you can use eCPM to compare your results.
Even for smaller sites, eCPM can be a useful statistic to track ad performance.

Formulae:
eCPM = (Total Earnings / Impressions) * 1000
Note : In openx total earnings refers to Rev (Revenue) in statistics

For example, eCPM for 370 page impressions and $1.48 total earnings will be :
eCPM = (Total Earnings / Impressions) * 1000
= ($1.48 / 370 ) * 1000
= $4.00

Reading this article, I think you will be able to catch the CPM, CPI, PPC, CPA, CTR and ECPM concepts

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Purab

I am Purab from India, Software development is my profession and teaching is my passion. Programmers blog dedicated to the JAVA, Python, PHP, DevOps and Opensource Frameworks. Purab's Github Repo Youtube Chanel Video Tutorials Connect to on LinkedIn

One thought on “CPM, CPI, PPC, CPA, CTR and ECPM in AD serving logic”

  1. i still don’t understand the difference from CPM and ECPM…. like if i gave you what the CPM rate was and the impressions delivered and impressions goal, what would be the ECPM, would it be any different?

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