The eCPM (effective CPM) is used to compare the yield of campaigns that pay in different ways.
Everything is converted to CPM in order to make comparisons. In other words, the eCPM is the way to express, in monetary values, the relationship that exists between the actions that a campaign carried out (e.g.: between impressions and clicks). This permits us to compare it with the yield of other campaigns with the same priority that pay in different ways, in order to arrange and visualize campaigns depending on their eCPM value.
For example:
Let’s suppose we have a campaign that pays 0.10 cents per click. After a week, it registered 100,000 impressions and 2,000 clicks.
Therefore, it generated $200 (0.10 x 2,000).
As 100,000 impressions were necessary to generate that amount, the eCPM is $200 /100,000 impressions = $200 / 100 CPM = $2.
(100 CPM is the result of dividing 100,000 / 1000 CPM = 100. All is expressed in CPM).
Therefore, the eCPM is $2.
Implementation
1- In “Global Preferences”, select the option “Optimize by eCPM campaigns with priority 1, 2, 3, 4 etc.”.
2- Then, indicate the “Percentage of impressions used for research in eCPM optimization”.
There is a percentage range that varies from 0% to 60%. This is also carried out through the “Global Preferences”. The research percentage is 1% by default, but it can be modified at any time.
IMPORTANT NOTE: The percentage change is applied instantly.
3- The campaign can be created under CPM, CPC, Sponsor or CPA.
IMPORTANT NOTE: The type of campaign does not influence at all in the eCPM or payments calculations. The only influence it has is determining when the campaign ends.
4- When assigning the Priority, you should choose the same priority that was selected in the “Global Preferences”.
5- Complete the information about the campaign’s price (obligatory).
In this way, the system will calculate the eCPM of each campaign and it will show the campaign that has the greatest eCPM more frequently.
The eCPM is calculated by Campaign and Space and Campaign, Banner and Space, for any campaign that has a specified price.
All campaigns are tested continuously. This adapts better to the eCPM changes related to the campaigns and it achieves better earnings.
The system allows the division of all the impressions between research and generation of income. The research takes place with the testing of new campaigns or old ones that due to their past eCPM are not being showed, but that may be profitable at the present moment. This allows a substantial improvement in the optimization functioning.
Once the eCPM of all uploaded campaigns is known, e-planning can easily arrange them by showing those that pay more first, and then the ones that pay less.
When there are several campaigns loaded in a space, e-planning arranges them according to the eCPM in a downward manner (those that pay more appear first). The system controls them one by one, and shows the first one that complies with all the filters and targeting variables. That is, if a space has 2 campaigns, A and B, with the eCPMs of $0.89 and $0.88 respectively, and no one has filters nor targeting and both have the same priority, e-planning will always show campaign A while the eCPMs are maintained.