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You may have learned about CPM, but then you got confused when you found out about eCPM. That’s the case with a lot of publishers. eCPM or Effective CPM is another key metric used to measure the ad revenue. But before getting to it, let’s recap the basics first.

Understanding CPM
CPM or Cost Per Thousand Impressions is the amount advertisers are willing to pay for every thousand impressions they receive. It’s an advertisers’ side metric that help them decide the budget of their campaigns.

CPM is calculated using this formula:



CPM Formula
For example, if an advertiser has a budget of $100 and wants to reach 100,000 users, then his/her CPM would be $1, i.e., ($100/100,000)*1000.

How is eCPM Different?
eCPM or effective CPM is the revenue earned by a publishers for every thousand impressions. You need to pay special attention to the term ‘effective’. Here, effective CPM means the revenue earned by the publishers, effectively.

Confused? Let’s try again. eCPM is the cumulative revenue generated by publisher per thousand impressions, some of which also get clicked, then converted into leads, and become customers for the advertisers. Hence, eCPM is not just calculated using CPM campaigns but also CPC, CPL, and other such campaigns running via publisher’s inventory.

eCPM is predicted by the ad network of the publisher using this eCPM formula:


eCPM Formula
But, it sounds a lot like RPM (revenue per thousand impressions)

Google AdSense used to predict publishers’ earnings using eCPM in their previous models. However, newer AdSense versions show RPM instead of eCPM. Meaning, eCPM and RPM refer to the same thing, according to AdSense. However, if you are partnered with different ad networks, it’s better to clarify with them the metrics they use to predict your earnings.

Simply put, CPM is the money advertisers spend on a campaign. And eCPM is the amount earned by the publisher.

Why eCPM is Important
eCPM helps predict the earnings of the publishers. A target earning number can work as a motivation for publishers to work accordingly. If you are performing ad testing to find the best performing ads for your website, then eCPM achieved for different ad tests can help you choose the winner ad.

Are you looking to increase your revenue by advertising with The ELU Group? Fill out the form below and start the process.



Hemp Industries Association

The Hemp Industries Association has existed since 1994 as a non-profit trade association that advocates for the “fair and equal treatment of industrial hemp and its opportunities in agriculture and the marketplace.” is proud to count ourselves among the more than 1,500 supporting members of the Hemp Industries Association, given the association’s exacting standards of sustainability, commitment to continuing education, and high bar for ethical hemp farming practices.


National Hemp Association

The National Hemp Association is a non-profit corporation that exists to directly support the continued growth of the hemp industry at large, with a particular eye towards bio-sustainability. As a major player that works closely with farmers, government officials, and industry leaders, the National Hemp Association is uniquely positioned to have a significant positive impact on hemp infrastructure, policy, and the economy at large. As a member of the National Hemp Association, is committed to furthering these goals and providing the NHA with our resources and insight to support their mission.


U.S. Hemp Roundtable

The U.S. Hemp Roundtable’s primary mission has always been the passage of federal law that deregulates, and eventually fully legalizes, the hemp plant. is a proud member of this energized coalition of leading hemp companies that works to de-stigmatize hemp by providing information to federal and state agencies, law enforcement personnel, and the public at large. looks forward to continued cooperation with the Roundtable’s important efforts to leverage hemp’s possibilities to the benefit of all Americans.