Why is eCPM lower than my Min CPM? (2024)

FAQs

Why is eCPM lower than my Min CPM? ›

Common reasons eCPM might be lower than your Min CPM

The main difference is that eCPM is the average of multiple CPMs. Because many advertisers are bidding on each ad impression with different CPMs, the price isn't fixed. eCPM gives you the combined average of all advertiser bids for your ad impressions.

For instance, the average eCPM might be based on the location of the ad audience and the specific type of audience. Generally, the average eCPM tends to fall around $2 to $10.

The 2022 eCPM drop is indicative of the ever-evolving nature of ad monetization, and understanding this can help developers stay ahead of the curve. It's important to be aware of current trends so developers and ad monetization managers can be prepared to adjust their strategies accordingly.

Determining whether a CPM is good or bad will depend heavily on individual business objectives. For example, higher CPMs could lead to unfilled impressions, while lower CPMs could be the result of poor quality traffic.

Publishers use eCPM to assess how well ads are performing. This works on two levels: monetization and user acquisition (UA). On the monetization side, publishers use eCPM to assess the earning power of their ad real estate. A high eCPM shows the ads they're serving are performing well and converting users.

Four reasons why your CPM can be low:

The ad viability and size: larger ones have always have higher CPM and the viability of an ad is very important because a publisher with a bad viewability score will have truly low CPM.

What is the difference between CPM and eCPM? CPM is the rate that advertisers pay per 1000 impressions. eCPM is the ad revenue of a publisher per 1000 impressions.

There are many different aspects that affect eCPMs, including ad placement, location, seasonality, site speed, user engagement, advertising format, etc.

What is an acceptable CPM? ›

Recent research shows that the average CPM for Google Display Ads is $3.12, Google Search Ads is $38.40, and Facebook Ads is $8.60. If your CPM is below industry averages, then you can assume that your ads are performing well.

eCPM is calculated by dividing the ad revenue by the number of ad impressions and then multiplying the quotient by 1000. Most ad platforms will calculate eCPM automatically for publishers.

In-app rewarded ads eCPM for Android in selected countries 2023. Between January and March 2023, the effective cost-per-mille (eCPM) for in-app rewarded ads for Android in the United States experienced a constant increase, rising to 18.40 U.S. dollars in the last measured month.

In digital marketing, on the other hand, an impression in CPM is the number of views/engagements an ad receives. Because impressions are such little units of measurement in marketing, they're counted by the 1,000. The lesser your CPM, the lower your ad cost, and the more revenue you generate.

The ad viability and size: larger ones have always have higher CPM and the viability of an ad is very important because a publisher with a bad viewability score will have truly low CPM.

High CPM: If your CPM is high, it means you're paying more to reach a thousand people. This could happen for various reasons, like if there's a lot of competition for ad space, if you're targeting a very specific group of people, if your ad is in a prime location, or if your audience is unique and harder to reach.

The difference in values between RPM and CPM can occur due to various factors. Here are a few possible reasons for your RPM being lower than your CPM: 1. Ad fill rate: The RPM is calculated based on the actual revenue generated from ad impressions, while CPM represents the cost advertisers pay for 1,000 ad impressions.