Basic Formulas in online Advertising : eCPA CALCULATION

eCPA CALCULATION

eCPA is effective cost per Action which is calculated same as eCPC and eCPM , It is the total spend by the total number of actions(i.e conversions) acquired .

Example : The total spent on the campaign is $2000 and the total number of conversions made is 200 , what will be the eCPA ?

Formula of eCPA ,

eCPA = Total spent / number of conversions or actions

Using the above metrics ,

eCPA = 2000 / 200 = $ 10

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.

Basic Formulas in online Advertising : eCPM CALCULATION : (Effective cost per mile)

eCPM CALCULATION : (Effective cost per mile)

Effective CPM is the actual CPM that is being applied , If the CPM set is $2 and the eCPM is $1.5 , the net profit is $0.5 . eCPM helps you measure how well your ads are performing.It is calculated by dividing total earnings/total spend by total number of impressions in thousands.

eCPM = ( Total spent / Impressions delivered ) x 1000

Example : An ad size of 728 has delivered 213456 impressions and has also spent some $300 with CPM set as $1.5, what will be the eCPM ?

Using the formula ,

eCPM = ( 300 / 213456 ) x 1000 = $1.40

We can also calculate eCPM using eCPC , but for that we need to know the conversion rate. and than using the formaula as below :

eCPM = eCPC x conversion rate x 1000