Information flow advertising billing model and display mechanism

Information flow advertising display mechanism

eCPM refers to the estimated revenue of an advertising platform per thousand impressions. It is also the fundamental factor that affects the amount of advertising displayed.

Next, let’s look at the formulas corresponding to eCPM under different billing modes:

CPC exposure is free, click-through billing:

eCPM = Consumption/Impression * 1000

= bid * clicks / impressions * 1000

= bid price * click-through rate CTR * 1000

Example:

Ad A Bid 1 Click rate 1%

So eCPM = 1 * 1% * 1000 = 10

Ad B bid 0.5 click rate 3%

So eCPM = 0.5 * 3% * 1000 = 15

Although B's bid is lower than A's, it has a higher chance of being displayed because of its higher click-through rate (CTR) and higher eCPM value.

oCPC second stage, click billing

oCPC is an intelligent delivery model aimed at obtaining more conversions. When entering the second stage, we need to set the target conversion bid in the background. At this time, eCPM is closely related to the conversion rate.

eCPM = estimated click-through rate * estimated conversion rate * target conversion bid * 1000

Author: Aiqi SEM

Source: Aichi SEM