Effective cost per mille
Also known as: eCPM
Effective cost per mille (eCPM) refers to the effective average cost per 1,000 impressions of an online ad. If ad placement is paid for based on the number of clicks(CPC) or conversion(CPA) then these costs are often converted to a result per 1,000 views of the banner or text link.
The eCPM can be calculated by dividing the total cost to the advertiser by the number of impressions divided by 1,000. The result of the same arithmetic on the publisher's revenue side is also called RPM.
