What is effective cost per mille in SAP CRM-ANA-MKT - Marketing Analytics?

SAP Term: effective cost per mille

• Component: CRM-ANA-MKT

• Component Name: Marketing Analytics

• Description: A metric used to calculate the effectiveness of a campaign when the ratemodel used is CPM. Effective cost per mille is calculated by dividing the budget spend by the total number of impressions in thousands.

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• Key Concepts: 
  Effective cost per mille (ECPM) is a metric used in marketing analytics to measure the cost effectiveness of an advertisement campaign. It is calculated by dividing the total cost of the campaign by the number of impressions (or views) it received. ECPM is used to compare the cost effectiveness of different campaigns and to determine which campaigns are most cost-effective.
  
  How to use it: 
  To calculate ECPM, divide the total cost of a campaign by the number of impressions it received. For example, if a campaign costs $1000 and receives 10,000 impressions, its ECPM would be $0.10. This means that each impression costs $0.10. ECPM can then be used to compare the cost effectiveness of different campaigns and to determine which campaigns are most cost-effective.
  
  Tips & Tricks: 
  When calculating ECPM, it is important to consider other factors such as click-through rate (CTR) and conversion rate (CR). These metrics can help you determine which campaigns are more likely to result in conversions and sales. Additionally, it is important to consider the quality of the impressions when calculating ECPM. Low-quality impressions may not be as effective as high-quality impressions, so it is important to factor this into your calculations.
  
  Related Information: 
  ECPM is closely related to other metrics such as Cost Per Click (CPC) and Cost Per Acquisition (CPA). CPC measures the cost of each click on an advertisement, while CPA measures the cost of each acquisition or sale resulting from an advertisement campaign. Additionally, ECPM can be used in conjunction with other metrics such as Return on Investment (ROI) and Lifetime Value (LTV) to measure the overall success of an advertisement campaign.