Chances are that if you’re generating revenue from your website traffic, you’re familiar with CPM as an advertising revenue model. It stands for “Cost Per Mille” and translates to the price paid per 1,000 impressions on any particular ad. Note the term price paid, as this is a metric that advertisers are more inclined to take into consideration when compared to publishers.
What you may not be familiar with is eCPM, which is another metric by which ad profitability is measured. It stands for “Effective Cost Per Mille” and translates into an ad performance metric per 1,000 impressions, while CPM is used to reveal reach and pricing.
Plenty of online marketers will attest eCPM is the way to measure your website’s profitability, but there is yet another metric you should be taking into consideration: RPM.
Why RPM Is A Website Publishers’ Metric of Choice
RPM stands for “Revenue Per Mille” and translates to the revenue an ad generates per 1,000 impressions. It is most often used to describe revenue rates associated with display advertising campaigns. While CPM and eCPM are effective at measuring revenue, they are not from the publisher’s perspective. These two metrics don’t take into account page refreshes and fill rates, which can skew the overall results.
This is where RPM comes in; it is a performance metric specifically from the publisher’s point of view. RPM uses total revenue and page views to deliver an accurate account of a website’s a revenue. This is the best way for a website publisher to get an accurate assessment of their website’s profitability. It is effectively one of the most reliable metrics to consider when operating your online business.
RPM is calculated by dividing a website’s overall earnings by the number of page views received, then multiplying that number by 1,000.
The RPM formula looks like this:
RPM = ( page earnings / page views ) * 1,000
For example, if your page earns you $15.00 from 2,500 page views, then your RPM equals ( $15.00 / 2,500 ) * 1,000, or $6.00.
How AdMetricsPro Uses RPM To AMP Your Revenue
AdMetricsPro is a publisher-focused service dedicated to bringing your website’s revenue to its full potential. As publishers, we have direct experience in speaking to your needs. We can effectively optimize your monetization efforts, analyze your website’s current earnings using RPM and help you more efficiently utilize ads that will provide higher RPM rates and generate more revenue. Contact us today to schedule a free site audit and find out how we can AMP your revenue.