Measuring Ad Performance

When you start dealing with different types of ads, things get a little more complicated. It doesn’t give you great insight to just ask “how much money did I make this month?” because there are so many factors affecting how much money you’re making from your impressions. It’s important to measure your ad performance. Keeping track of this performance will help you know exactly how your ads are working right now and what things you could do to earn more revenue.

Topics Covered

This section will cover 3 main topics around measuring your ad performance.

  • CPM
  • eCPM
  • RPM

Ad Performance Factors

CPM

The most well known measure of ad performance is CPM. This means the “cost per one thousand impressions.” However, CPM can be confusing because various ad networks will define it differently. Some networks interchange the terms CPM and eCPM, when they are actually very different.

eCPM

CPM is the cost per thousand impressions, while eCPM is the effective cost per thousand impressions. When a network is measuring eCPM, that means the network is looking at the impressions that are sold or filled. You calculate eCPM by dividing your total earnings by the number of impressions in thousands:

       eCPM =  Total earnings/Impressions  x 1000

Another measurement frequently used when measuring ad performance is RPM. This is also known as “ad revenue per thousand impressions.” Looking at RPM can often give a more accurate measurement of ad performance because it shows how much money you earn for every thousand pageviews. You can calculate RPM with the following formula:

RPM

Another measurement frequently used when measuring ad performance is RPM. This is also known as “ad revenue per thousand impressions.” Looking at RPM can often give a more accurate measurement of ad performance because it shows how much money you earn for every thousand pageviews. You can calculate RPM with the following formula:

RPM = Total revenue/(page views/1000)

Each of these metrics give you a glimpse into how your ads are performing. In our experience, using all three will give you the best picture of your ad performance. We suggest focusing on your RPM to determine your overall performance. Then, keep an eye on your eCPM and CPM for greater detail on your specific ad performance.

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