Two advertising models use different metrics for payment. Can they be compared on an equal basis? Yes
CPM ads pay based on dollars per thousand views. CPC ads pay a dollar amount only when a user clicks. If CTR is the click-through-rate, then the formula for computing the equivalent CPM is:
CPC x CTR x 1000 = eCPM
This is the same as:
Earnings / Impressions x 1000 = eCPM
Earnings = CPC x CTR x Impressions
CPC x CTR x 1000 = eCPM
Let's look at a few examples.
If an advertiser pays 10 cents per click; and your CTR is 1% (i.e. 1 of 100 viewers click), the eCPM is $1. (e.g. 1,000 x 1% x $0.10 = $1.00) This is already high for most bloggers.
If an advertiser pays $1.00 per click; but only 0.1% (i.e. 1 of 1,000 viewers click), the eCPM is still $1.00.
Thus, your best result is a high CPC, usually from an advertiser selling a high-ticket service or product like mortgages and cars; and a CTR from your audience for this product that is higher than normal.
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