What is Effective Cost Per Mille (eCPM)? Complete Guide for 2026

eCPM is the revenue or cost per 1,000 impressions, whatever the ad was priced on. Learn the eCPM formula, how publishers use it, and how it differs from CPM.

How eCPM is calculated

Effective cost per mille converts any ad result to a per-1,000-impressions figure:

eCPM = (ad earnings / impressions) x 1,000

A worked example: a casual game shows 2,000,000 ad impressions in a day across banners, interstitials and rewarded video, and earns $5,600. eCPM is 5,600 / 2,000,000 x 1,000 = $2.80.

The "effective" part matters because many impressions are not sold on a CPM basis. A network paying per click or per install still produces a revenue per impression once you divide by impressions served. eCPM puts all of them on one scale so a publisher can compare them.

Who uses eCPM

eCPM is mainly a publisher metric. Apps that sell ad space to advertisers use it to decide which ad networks get which impressions, to compare formats, and to set floors in mediation. A rewarded video network paying $12 eCPM and a banner network paying $0.40 eCPM tell you very different things about where to put ad placements.

Advertisers sometimes use eCPM the other way, as an effective cost: spend divided by impressions times 1,000, even when they bought clicks or installs. That helps compare a CPC campaign with a CPM one.

eCPM and revenue per user

For an ad-supported app, daily ad revenue per user follows from eCPM and impressions per user:

ad ARPDAU = eCPM x impressions per DAU / 1,000

If eCPM is $2.80 and the average daily user sees 15 ads, ad revenue per daily active user is 2.80 x 15 / 1,000 = $0.042. Raising impressions per user too far can hurt retention, so teams track eCPM, impressions per user and retention together.

eCPM and measurement

eCPM data comes from your ad monetization stack: the mediation platform and the networks that buy your inventory. Linkrunner does not import ad monetization revenue today. It attributes installs, in-app events, in-app purchases and subscription revenue to the campaigns that acquired each user, so for ad-supported apps you would join ad revenue from your mediation reports with Linkrunner's install and cohort data, for example through a raw data export or the reporting API.

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