What are eCPC and eCPM?
eCPC and eCPM are two common terms in digital marketing and online advertising.
eCPC stands for "effective cost per click" and is the average cost per click for an ad. This is calculated by dividing the total cost of an ad campaign by the number of clicks the ad generated. For example, if an ad campaign cost 1000 SEK and generated 100 clicks, the eCPC is 10 SEK.
eCPM stands for "effective cost per mille" and measures the average cost to show an ad one thousand times. This is a common performance type for ad networks and is measured as the cost per thousand views (CPM) multiplied by the conversion rate. For example, if an ad campaign cost 500 SEK and was shown 10,000 times, the CPM is 50 SEK, and if the conversion rate is 1%, the eCPM is 0.50 SEK.
Both eCPC and eCPM are used to evaluate the performance and efficiency of an ad campaign. eCPC focuses on click performance, while eCPM measures how much it costs to show an ad to a specific audience.