For those of you who don’t know, eCPM stands for “effective cost per thousand impressions” and is calculated as your earnings divided by total impressions (in thousands) on your websites through which you made that money.

So for example, if you have made $40 out of 20,000 impressions, your eCPM will be 40/20 = 2.00, and supposed if you had made $80 out of 20,000 impressions than your eCPM would had been 80/20 = 4.00. eCPM is normally spoken with the currency name in which you have made money, so your effective CPM will be $2.00 or $4.00 in these cases.

Now I have seen websites with eCPM of $0.10 to $50 and it is very hard to say for anyone what is good eCPM. Lot of people ask this question that what is good eCPM in web forums and whether they are doing good or not.

The first thing you need to know is, eCPM is just a quick and dirty way of comparing websites earnings and just because a website has eCPM of $4.00 doesn’t means its makes more money then a site which has lesser eCPM but ya, higher eCPM do signifies higher earnings for fixed amount of impressions.

Normally people say eCPM of $5.00 is a good eCPM and you should maintain it. Anything above it means you are doing well, anything below it means you need improvement. If your eCPM is less than $2.00 then you seriously need to work on it, either find a better niche, or change your ad placement to get more clicks.

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