We compared eCPM and CPM in one of our previous articles. In this article, we will extend the discussion by comparing eCPM with rCPM (also known as RPM). You will learn about the differences between eCPM and rCPM, as well as the importance of fill rate.
Table of Contents:
If you haven’t read our previous article yet, here is a brief overview of eCPM.
¿Qué es el cCPM?
eCPM stands for effective cost-per-thousand. It is calculated to demonstrate the ad revenue generated from 1000 ad impressions. eCPM is the average number of multiple CPMs. In simpler terms, eCPM gives you the combined average of all advertiser bids on your ad impressions.
Fórmula para calcular el cCPM
Ejemplo de eCPM
What is rCPM?
rCPM or RPM es también conocido como coste por mil real. la diferencia es que el rCPM se calcula sobre todas las impresiones, las vendidas y las no vendidas. Esta métrica tiene en cuanta el porcentaje de fill rate. 1000 ad requests. La diferencia es que el rCPMN se calcula sobre las llamadas totales de impresiones, no solo sobre las vendidas.
It is vital to understand that ad impressions and ad requests differ completely. An ad request is whenever your website calls for an ad to be displayed on it. It doesn’t mean that the ad will automatically be visible on your site. On the other hand, ad impression, however, happens after the bid for the ad is approved and the ad is displayed on your website.
*Por ejemplo, si Google AdSense directamente en el código de tu pagina nunca podrás saber cuantas llamadas e impresiones servidas has tenido, a no ser que tengas un adserver. Google Ad ManagerSolo con un adservcer podrás ver y entender estas métricas.
Formula of rCPM
Fill rate is the percentage of ad impressions your ad received, divided by the total ad requests and multiplied by 100%. For example, if only 250 of 1000 ad requests you sent in total were transformed into ad impressions, your fill rate would be 25% (250 / 1 000 x 100% = 25%).
Fill rate is typically influenced by a lack of demand or set minimum floor price. In such a case publisher should use a passback or account unfilled impressions as lost.
Fill Rate Fórmula
To calculate the fill rate, you have to divide your total ad impressions by total ad requests received and multiply by 100 percent. In this way, you will learn that the fill rate is a percentage.
Example of rCPM with fill rate
Imagine that you have an eCPM of 2€ and your ad has been requested 1000 times in total, but your fill rate is only 25%. This means that your ad was displayed on the website 250 times. You sold 250 ad impressions of 1000 ad requests made. Your calculated rCPM is 0.50€.
(250 / 1 000 x 2€ = 0.50€)
¿Que métrica debo usar para comparar?
If you want to evaluate ad revenue from a specific monetization partner, always choose the rCPM metric for comparison. If your rCPM metric is higher, your ad revenue becomes higher as well. Since rCPM includes fill rate and ad requests, your calculation will be more precise than if you were to use eCPM. We suggest calculating eCPM if it is the only metric available (Google AdSense users); otherwise, always choose rCPM.
Keep in mind that a high eCPM with low fill rate equates to a lower rCPM and total revenue. Hence, you cannot only rely on the value of your eCPM, because there is a possibility that your fill rate is lower than desirable.
Let’s conclude with an example
Imagine that you have 10M ad impressions, which you sold for the rCPM of 0.50€. This gives you the ad revenue of 5000€.
(10 000 000 / 1000 x 0.50€ = 5 000€)
Now you know that by increasing rCPM, you will gain even more ad revenue. How is this possible? The answer is simple: you have to improve the monetization of those 10M ad impressions. With the help of Setupad, you can display an ad almost every time a website loads and triggers an ad request.
By using the header bidding solution, Setupad can manage your 10M ad impressions and sell them for the rCPM of 1€. Your total ad revenue doubles giving you 10 000€ instead of 5 000€.
(10 000 000 / 1000 x 1€ = 10 000€)
This example proves that by increasing your rCPM rate, you can boost your ad revenue significantly. Test it out yourself by signing up!