Online Calculators since 2009
Electronic promotions and advertisements have become very popular due to growing social media presence and modernization of old systems in almost all the industries. Using online advertising is an effective way of reaching the common man now a days. Most of the big companies as well as small businesses use online advertising and effective CPM is a measure that is used for managing digital marketing functions.
Effective CPM stands for effective cost per mille (mille being roman symbol for thousand) that measures the effectiveness of a digital marketing campaign, also this is used to compare the profitability of campaigns that have different pricing models. Let's have a look at the definition of effective CPM and the way it is calculated.
Effective CPM of effective cost per thousand (ECPT) as the name suggests, is a method used by the publishers of the ad campaigns. This measures the performance of ad campaigns on the basis of revenue generated by them per thousand views. This is calculated by dividing the revenue generated by an ad campaign by the number of impressions generated and then multiplying it by a thousand.
This can be better understood by an example: Let's assume you had bought an ad campaign that have generated the revenue of $50 with the total ad impressions of 10,000. This will result in the effective CPM of $50 which means that $5 has been generated per thousand ad impressions. This is the ways to perform the calculations manually, however, just in case you want to use the easier method, you may use the online effective CPM calculator designed by iCalculator. Let's see how to use the calculator and its benefits.
The effective CPM calculator is easy to use that reduces your efforts of manual calculations to just a few inputs and clicks. The calculator has the following fields that you have to fill in order to get the results:
On the basis of above inputs the calculator will provide you with the effective CPM value, which denotes the revenue generated per thousand ad impressions.
It is not necessary to have the actual numbers in hand, the estimated numbers or the numbers that are offered by the advertiser can be entered.
The calculations become quite complex with huge projects, but the calculator will be able to perform these calculations for you.
The results can be used to compare the effectiveness of different ad campaigns, also, services from different service providers can be compared for profitability. However, effective CPM is not to be confused with CPM, both are calculated in a similar manner, but have different motives, let's see how they are different from each other.
The method of calculating CPM and effective CPM is similar but they both serve different purposes. Effective CPM is used to measure revenue per thousand impressions, whereas CPM is a measure of the cost of buying the advertising per thousand impressions.
Both CPM and effective CPM metrics are useful in their own essence. Effective CPM is the way to go in the web-world, also it helps businesses to better manage their marketing teams.
You may also find the following Finance calculators useful.