7 ways to increase eCPM
Publishers typically glance at their sales in two forms: direct and indirect.
Direct: When inventory is directly sold to an advertiser or agency by the salesperson. Indirect concerns with an inventory sold via third-party partners. In general, a publisher takes account which is not fulfilled by the direct channels and sends off the left-over inventory to a third party. This can be an exchange, a network, or a Sell Side Platform (SSP- technology for publishers).
In case of indirect sales, the publisher is required to view the eCPM generated on that placement from each demand source they have permitted. Thus, the eCPM calculation will be entire inventory divided by 1,000, divided by the total income.
On the other hand, several publishers try to track eCPM by the seller, even after the left-over inventory is passed on to a new vendor to generate revenue, which is an unfair demonstration of value (e.g., total impressions, divided by 1,000, divided by one vendor’s claim). This is often termed as daisy chaining.
What needs to be assessed is the paid inventory which the demand partner brings to the association, thereby altering the computation to paid impressions divided by 1,000, divided by vendor revenue. This will obviously result in a high CPM as the number of impressions is reduced.
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What exactly is eCPM?
Before we plunge into discussing the strategies and ways to increase eCPM in detail, let’s first shed light on some very basic terms. eCPM stands for “effective cost/earnings per mille”. “Mille” is a Latin word that represents one thousand and “effective” indicate actual instead of face (projected) value. Thus, eCPM is the exact cost to the advertiser for thousand hits. The more the eCPM the more profits a publisher make.
Let’s understand this. If you’re working, with a CPA network you may have a high click-through-rate but since the visitors are not turning up for you from third-party platform, you are likely to have a low eCPM.
We can say that eCPM = click through rate*conversion rate*profit per conversion*1000
Based on this, we can define and address the useful tools and elements that need to be optimized for increased eCPM .
● Click-through rate: This is in all probability the simplest metric to optimize as it allows the publishers to manage and control a bundle of the variables. You can also test different advertising placements, time when an ad is shown and formats. Having said this, the network you choose and targeted campaigns plays an important role.
● Conversion rate: Ad conversion relies on how relevant an ad is for the user, whether optimised or not and timing of the full-screen ads
● Revenue per conversion: The revenue will maximize if you can increase the per click amount being paid for a click or paid per conversion.
The motive behind placing the ad-units on websites is to get more revenue from the online business. The more the eCPMs the more profits it generates. But how do you increase the eCPM?
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