Advertising (© utah778 / Fotolia.com )
Advertising (© utah778 / Fotolia.com )

For those new to the marketing and advertising world, the term CPM can be somewhat confusing. But there is even a new term more new term that is confusing even marketing and advertising professionals. This is eCPM. In this article, we are going to Define eCPM and determine how it is calculated so that you can understand the term better and learn how to use it effectively.

What does eCPM stand for?

To understand what eCPM stands for, first you have to understand what CPM stands for. While this is not normally a confusing term for those involved in the marketing and advertising business, it is still important that we define it for those that are not familiar with it.

CPM stands for cost per million or more technically cost per mil. Mil is Latin for 1000, which is why ad impressions are measured in CPM. It is how much you will pay for every 1,000 impressions. So, for example, if your banner ad as shown on the website 1000 times and your CPM is $10, then you will pay $10 for those 1000 impressions.

But we're here to define eCPM. ECPM is a measurement that allows you to compare your actual cost to sort of a projected cost that can help you decide which method of advertising is best for you. For example, an eCPM with a worldwide organization helps to convert all of your different advertising methods into one single eCPM or estimated cost per impression so that you can see what you are actually spending across the board.

Another Definition for eCPM

However, with the advent of Smart Technologies that is allowing advertisers to get even more for their money, eCPM may refer to enhanced cost per million or enhanced cost per impression.

So, eCPM can stand for effective cost per mil, estimated cost per mil or enhanced cost per mil. The term doesn't really matter. The point is, you should understand exactly what these terms means so that you can better use it in your marketing and advertising professional.

Conclusion

There are so many new terms on the internet. However, eCPM is one of the most important if you do any sort of advertising through websites or through any of the search engine advertising programs. You want to find out what is going to cost you the least and give you the best results because that is what web advertising is all about.

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