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eCPM vs CPM (Comparisons between a CPM and CPC)

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

How does the system compare CPC and CPM in the Display Network? I know that there ieCPMs such thing called effective CPM or eCPM but how does the system estimate the potential clicks an ad would have in a thousand impressions?

2 Expert replyverified_user

Re: eCPM vs CPM (Comparisons between a CPM and CPC)

Top Contributor
# 2
Top Contributor

Hi there; 

To compare between CPM and CPC in an auction AdWords converts CPM to eCPM  (an "equivalent" to a CPC).

Google does not disclose the formula. (Probably because it prefers CPC bidding...Smiley Happy

 

I found you this article, that  show a calculation to find an "estimated" CPM;

http://webanalysis.blogspot.co.il/2012/01/cost-of-advertising-cpm-ecpm-and-cpc.html#axzz2KloteyNS

 

And here is the link to Google's tutorial about eCPC:

http://support.google.com/adwords/certification/bin/static.py?hl=en&page=guide.cs&guide=23293

 

-Moshe

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Re: eCPM vs CPM (Comparisons between a CPM and CPC)

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭
Hi Moshe TLV,

Thanks for the answer. When you say Google probably prefers, do you mind telling me what's necessarily the reason/reasons?

And the article you sent me is rad!

Much appreciated!

Re: eCPM vs CPM (Comparisons between a CPM and CPC)

Top Contributor
# 4
Top Contributor
Hello again;
This is my observation about CPM. no confirmation.
Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Re: eCPM vs CPM (Comparisons between a CPM and CPC)

Follower ✭ ☆ ☆
# 5
Follower ✭ ☆ ☆
Not sure if Adwords has changed since your reply, but this article
http://www.danielpinero.com/how-to-calculate-effective-cpm-adwords

Suggests that CPC is used to calculated eCPM, rather than CPM being used calculate eCPM?

Formula appears to be eCPM = CTR x CPC x 1000

ecpm????

Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭

Hi,

I want to know what exactly ECPM?

Re: eCPM vs CPM (Comparisons between a CPM and CPC)

Community Manager
# 7
Community Manager
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