What is the formula for finding eCPM?

The formula for finding effective Cost Per Mille (eCPM) is accurately expressed as (Total cost/served impressions) x 1000. This formula is critical because eCPM represents the estimated earnings an advertiser can expect per thousand ad impressions.

Total cost reflects the amount spent on the advertising campaign, while served impressions are the total number of times ads are displayed to users. By dividing the total cost by the number of served impressions, you obtain the cost per individual impression. Multiplying that figure by 1000 standardizes the metric, allowing for easy comparison across different campaigns and channels, as it translates the earnings into a standardized unit of thousand impressions.

This method of calculation helps marketers evaluate how effectively their advertising spend is translating into visibility over a large audience, making eCPM an essential metric in digital marketing performance analysis.