.... or how much you earned for 1000 ad views, if you are looking at a specific ad.
Generally, it is a good way to measure how well you convert people viewing your site into money.
Examples, Explanations :
1) For instance, you might have an advertiser that will pay you 2$ for every 1000 views of his advertisement. A sponsor that pays specifically to advertise his brand on your site.
This grants you 2 eCPM, just from that ad.
2) Now, let's assume you add ads from a automated program, like Adsense, that pays based on CPC. With a CTR of 0.5%, for every 1000 impressions, you will have 5 clicks.
If every click pays 10 cents, you earned 5*10 cents, $0.5 for 1000 impressions.
So, now you have 2.5 eCPM total. $2 from your CPM advertiser, and 0.5 from CPC ads.
3) Lets add an affiliate link ! I classify it as CPA - you get paid for an action. You will sell something like a Golfing eBook, and earn a $40 commission per sale.
Lets assume you have 500 visitors per day, that view 2 pages each.
One in a 1000, clicks and buys the Ebook. So, for every 2000 page views, you get additional 40$, or $20 eCPM.
In total, $2(CPM)+$0.5(CPC)+$20(CPA) = $22.5 eCPM.
Remember, that eCPM is often referred in the context of views (no CPC or CPA), but it is a general tool that can measure the overall revenue stream of your site, based on page views.
Hope that helps
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