How is Effective Cost per Thousand (eCPM) calculated?

Effective Cost per Thousand (eCPM) is a crucial metric in digital advertising that helps advertisers and publishers assess the overall revenue generated per thousand impressions. The formula for calculating eCPM is based on the total revenue or cost and the number of impressions delivered.

The correct calculation involves dividing the total cost (or revenue) by the total number of impressions and then multiplying by 1000. This method allows you to understand how much revenue is generated for every 1,000 impressions served. By using this formula, you can make meaningful comparisons across different campaigns, ad formats, or platforms, regardless of the pricing model (CPM, CPC, CPA) used.

Other options do not accurately represent the correct calculation of eCPM. For instance, using total impressions in the numerator, as seen in some other choices, would offer misleading information, as it does not reflect the relationship between cost and impressions needed to derive eCPM appropriately. Thus, using total cost divided by total impressions, multiplied by 1000, provides a clear and precise understanding of the effective cost per thousand impressions served in the advertising context.