eCPM (Effective Cost Per Mille) is a key metric in mobile app monetization that reflects the revenue earned per thousand ad impressions.
Why per thousand? The cost of a single ad impression is significantly lower than one dollar, especially for banner formats in Tier 3/4 countries, where the cost can be less than one cent. Therefore, using a thousand impressions makes comparison and analysis more convenient.
This metric governs two potential developments for your app:
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Main factors influencing eCPM:
- Type of advertisement
- User's geographic location (geo)
- Mobile device operating system
- Type of app or game genre
Additional factors:
- Seasonal changes in eCPM
- Advertising in mobile apps is subject to the same seasonal fluctuations as TV, internet, or billboard advertising.
- During periods of active product promotion, advertisers are willing to pay more for ad placements in mobile apps.
- For example, during Christmas and New Year holidays, companies spend more on advertising, which increases eCPM.
- Local events
- The launch of a new product or game can affect ad costs in a specific niche.
- On average, a person sees about 10,000 ads a day, so local events can impact the cost of ad impressions for a targeted audience.
- Quarterly cycles
- Advertising budgets are often planned quarterly, and companies strive to use their allocated funds by the end of each quarter.
- eCPM drops are expected at the beginning of each business quarter: January, April, July, and October. The third quarter is usually characterized by a plateau, as many people are on vacation and traveling.
- July and January (the beginning of Q1 and Q3) are historically the start of eCPM declines due to seasonality—Christmas/New Year and summer vacation periods.
Specific factors
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