What is eCPM and how is it calculated?

The acronym eCPM means ‘effective cost per mille’. It is the outcome of a calculation of the ad revenue generated by a banner or campaign, divided by the number of ad impressions of that banner or campaign expressed in units of 1,000. The ‘M’ for mille in the name comes from the Latin meaning 1,000. The formula to calculate eCPM is not all that complicated, once you realize the components that go into the computation.

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