How can I increase my eCPM?
We hear this question a lot from our developers, and similar questions pop up on developer forums all of the time. The first step in increasing your eCPM is to understand what eCPM really means.
What is eCPM?
eCPM stands for “effective cost per mille” (‘mille’ is the Latin word for thousand, so eCPM really means “the effective cost per thousand”). In its full definition, eCPM is the effective cost per thousand ad impressions.
eCPM is used as a tool by app developers when they are comparing ad networks or evaluating the success of an ad-based monetization strategy. Calculating eCPM is very simple. The formula for eCPM is:
Total Earnings/Impressions * 1000
(Total earnings divided by the number of impressions, multiplied by 1000)
Still not sure how eCPM is used? Check out this quick example:
Imagine that you are running two ad types in your app called “Banner 1” and “Banner 2”.
After a month or so of running the ads, you decide that it is time to evaluate the effectiveness of each ad. After reviewing the data, you see that “Banner 1” generated 345 impressions and $1.00 in earnings. “Banner 2” generated 740 impressions with $0.60 in earnings.
Based on these numbers alone, it can be difficult to determine which ad type was the most effective. This is where eCPM comes in.
After evaluating the eCPM formula for each ad type, “Banner 1” has an eCPM of $2.89 and “Banner 2” has an eCPM of $0.81. “Banner 1” wins!
Raising Your eCPM:
Here is another way of thinking about the eCPM formula:
eCPM = Click-Through Rate * Conversion Rate * Revenue per Conversion * 1000
If you can increase just one of these above factors, you will raise your overall eCPM.
To calculate the Click-Through Rate (CTR), divide the number of ad clicks by the number of ad impressions
To calculate the Conversion Rate, divide the number of calls-to-action completed by the number of ad clicks.
If you want to increase the CTR, there are a few things you can do as a developer. First, if you are using banner ads to advertise, experiment with the placement of the banner. In-app banners will have a different CTR than a mobile web banner, even if their size is the same.
Second, you can try out different ad sizes. Bigger ads usually see a higher CTR than smaller banner ads. You can also experiment with different banner designs, like, for example, our 3D Offer Wall. Original, eye-catching graphics will catch the user’s attention more easily. We offer our StartApp developers a wide variety of ad types, ad sizes, banner designs, and banner options to choose from! You can see a few examples below:
Some more tips:
- Keep in mind that apps with the lowest content ratings attract more advertisers and better advertisements because they can reach a wider audience. The same is also true of apps that are small in size!
- Make sure to optimize your app for a variety of the most popular OS software versions. If you are only optimized for the most recent version, you are alienating a very large potential audience who are using older phones.
The conversion rate for an ad depends on user interest and ad optimization. Collecting basic demographic information about your users is a start, but ad optimization can be hard, though not impossible, for a developer on their own.
This is where we come in! We lend a hand to developers by optimizing advertisements behind the scenes. At StartApp, we review apps on the back-end so ads are targeted to the interests of your users. If a user already has a specific app downloaded on their device, we make sure that this user will no longer see advertisements for that app.
We are also negotiating and building relationships with advertisers so that our developers can earn as much as possible.
In addition, we check if advertisements are optimized for mobile viewing, and we also make sure that any landing pages are optimized for mobile as well so users can complete a call-to-action quickly and easily.
eCPM is not as complicated or as mythical as it seems. When you break eCPM down into CTR and conversion rate, it’s easier to come up with strategies that will help you increase it! Don’t be afraid to experiment until you find a strategy that works best for you, your app, and your users!