## Tuesday, December 31, 2013

### Basic Formulas in Online Advertising : eCPC CALCULATION

eCPC CALCULATION :
eCPC, is a metric used by Internet marketers to calculate the effectiveness of their online campaigns when the rate model used is CPC . eCPC can also be termed as ” profitable per click” so if the actual CPC is \$2 and the eCPC is coming as \$1 per click , than \$1 is the profit on each clicks .

Net profit = CPC – eCPC

eCPC = (Total spent or revenue / clicks)

Example : If eCPC needs to be calculated for a single Ad size say 300×250 , we just need to figure out how much the Ad size has spent and how much clicks it has generated , so if it is like \$200 has been spent and the clicks generated are 100 with actual CPC set to \$3 .

using the formula ,

eCPC = ( 200 / 100 ) = \$ 2

So , net profit = ( 3 – 2 ) = \$1.

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