“How can I increase eCPM?” is a popular question on app development forums. And the answer is pretty simple – you can increase eCPM if you completely understand what it is and how it works.
What is eCPM?
eCPM stands for “effective cost per mille” where “mille” is Latin for “thousand”. Basically, it’s effective cost for a thousand of ad impressions and it is something used by app developers when comparing how different ad networks and ad sizes perform. You can calculate your eCPM by using the following formula:
Total Earnings/Impressions * 1,000
Increasing your eCPM
To increase your eCPM, think that eCPM is your Click-Through Rate * Conversion Rate * Revenue per Conversion * 1,000. If you manage to increase any of these factors, even a single one, your eCPM will increase as well. The easiest factor to improve is your Click-Through Rate (CTR).
If you use banner ads in your mobile app, you can boost your CTR by experimenting with ad placement and ad sizes. Try placing the ad at the top of the screen and then compare the results with placing the ad at the bottom of the screen. Test how different ad designs perform for you and experiment with sizes. There is no universal recipe on which sizes and color schemes work because it all depends on your users and your app.
Remember that ad conversion depends on its relevance to the user, its optimization, and timing if you use full screen ads.
As you can see, eCPM is not all that hard to understand. And if you break it down into CTR and conversion rate, it becomes a lot easier to come up with ideas to increase eCPM.