eCPM (effectivecost per mille) is the effective revenue per thousand impressions, which is the advertising revenue that can be obtained for every thousand impressions. eCPM is directly related to the level and amount of monetized income, and is an important indicator for operational optimization to increase revenue. If you want to optimize and improve ecpm, you must first understand the influencing factors of ecpm and make targeted adjustments.
1. Ad unit price
Corresponding to the resources of the leading advertisers behind them, when there is strong market demand, each advertiser will increase their bids in order to seek more/better exposure/conversion effects. Therefore, the advertiser resources behind it will affect the level of ecpm.
2. Market conditions/holidays
Derivative influencing factors of advertising unit price. When an industry increases/decreases investment, or is affected by festivals, the ecpm before/during the festival is often half higher than usual. The average eCPM in Q4 is the highest in the whole year; ecpm shrinks after the festival. Such as Black Friday in the United States, Double Eleven in China, etc.
3. Click rate
Corresponds to the behavior behind the end user. Although many advertising platforms charge based on CPM, there are still conversion behaviors optimized by CPC/CPA, such as OCPC, etc. Because when end users have click/conversion behavior, the platform will also make a certain tilt when placing ads.
4. Display per capita
Derivative influencing factors of click-through rate. I believe many friends know that the relationship between ecpm and per capita impressions is not directly proportional. The more impressions per person, the lower the ecpm will be.
5. Proportion of new users
Derivative influencing factors of click-through rate. The higher the proportion of new users, the higher the ecpm. This is related to the conversion behavior of new users, mainly because new users have not developed stickiness to the product and are more willing to convert.
6. Penetration rate
That is, the proportion of people who display ads. Strictly speaking, this indicator will not directly affect ecpm, but it will affect the coverage of ad display and the overall advertising revenue.
The above content is compiled and released by the AdSet aggregated advertising platform for developers' reference. Developers are welcome to communicate with AdSet for win-win cooperation!