eCPM

CPM = cost per mile = cost per thousand impression = CPC *CTR/100 *1000, for instance if we have a campaign with CPC of Rs 10 which is giving a CTR of 0.2 then the CPM for that campaign would be 20. This is the cost for every K impression served for that campaign. And this should include the cost of serving the ad, Agency commission, the network commission and the publisher share.
If the campaign is coming all the way through these channel then the eCPM for the publisher would be 20 X 0.85 (assuming 15 % for agency) X 0.70 (30 % for network, including ad serving) = 11.90. Next step would be to find the entire inventory in this price range, do we have or no?

To increase the revenue for the ad networks we have to increase the CPM, and we can do so by understanding some basic questions.

• How do we fix a price to buy the inventory?
• How do we decide on the % commissions for the network?
• How can we add value to every click? (to sell the inventory to the advertisers)
• How do we increase the CTR?

To fix the price of inventory, there is a need to find the Quality of Inventory (QoI), QoI is a Function of QoC (quality of content),QoS (quality of Ad space), QoU (quality of users on the content) ,QoA (quality of advertisers, which can run a campaign with a high CTR).

Next would be a chapter on Quality of Content.