Covid-19 and the resulting recession have significantly impacted publisher revenue. As businesses have been forced to close or limit operations, advertising budgets have been cut, resulting in a decrease in revenue. Additionally, the unpredictability of the economy has made it difficult for publishers to anticipate their income, as advertising campaigns can be canceled or postponed at a moment's notice. This has made it challenging to plan for the future and has led to a more uncertain revenue stream.
In this post, we break down the factors that can impact eCPM and how you can use this information to maximize your earning potential as a publisher. We have pulled together data from the previous two years to create a calendar of eCPM rate predictions for 2023, which we have made available as a download. These insights will give you a better sense of how eCPM fluctuates throughout the year. By understanding the trends in seasonal advertising spend and budget timing, you'll be able to make data-informed decisions about when to publish and promote your content.
What Is eCPM?
eCPM, or effective cost per thousand impressions, is a metric advertisers and publishers can use to measure the revenue generated from an ad campaign. It is important for publishers because it allows them to understand the probable earning potential of a specific date or time. By understanding eCPM, publishers can make educated decisions about when to publish and promote their content to maximize their ad revenue.
How Is eCPM Calculated?
eCPM is calculated by dividing the total revenue generated from an ad campaign by the number of impressions in thousands. The formula to calculate eCPM is:
eCPM = (total revenue / number of impressions) x 1000
It is important to note that eCPM considers both fill rate and CPM (cost per thousand impressions). Fill rate is the percentage of ad impressions that are actually filled and shown to users. CPM is the cost of showing an ad to a thousand people. The combination of these two metrics gives a more accurate picture of the revenue generated from an ad campaign.
For example, if you are running an ad campaign with a revenue of $100, and it was shown to 10,000 people, the eCPM would be calculated as:
eCPM = ($100 / 10,000) x 1000 = $10
In this example, the eCPM is $10, which means that the campaign generated $10 for every thousand impressions. Take a look at our eCPM vs CPM guide for a detailed explanation of the different metrics.
2023 eCPM Calender - Publisher Revenue Predictions
You can find a downloadable version of Snigel's 2023 eCPM Calendar here.
What Is Seasonal Advertising Spend?
Seasonal advertising spend refers to the times of the year when consumer activity fluctuates cyclically, and companies are more or less likely to deploy their advertising budgets. This can significantly impact eCPM, as companies are more likely to invest in advertising during times of high consumer activity, such as the holiday season.
How Budget Timing Impacts Publisher Revenue
Advertising budgets are often planned and allocated for specific periods, such as the end of a month, quarter, or fiscal year. As a result, we often see a spike in spending at the end of these periods and a decrease at the start of them.
How Increased Consumer Activity During Holidays Affects eCPM
Increased consumer activity during holidays can also significantly affect advertising budgets. As more consumers are in the market for gifts and other holiday-related items, retailers and other businesses are more likely to invest in advertising to reach these consumers. This increased competition for ad space can lead to higher eCPM, which can benefit publishers and other businesses that provide ad space. A prime example that reflects this seasonal activity is visible on the high and low eCPM days before and after Christmas.
The Importance Of Strategic Timing In Advertising
As a publisher, it's essential to understand the impact seasonal advertising spend and budget timing can have on eCPM and ad revenue. By understanding these trends, you can make informed decisions about when to publish and promote your content to maximize your earning potential.
How To Use This Data: Tips For Maximizing Earning Potential
- Align your content with major holidays and events: Take advantage of increased consumer activity during holidays and events by publishing content that aligns with these times. For example, publish holiday-themed content or content that relates to a major product launch.
- Promote content during key time periods: Take advantage of increased competition for ad space and higher eCPM during the end of months and quarters by promoting your content during these times.
- Monitor eCPM trends: Keep an eye on eCPM trends throughout the year, and adjust your content and promotion strategy accordingly.
- Use data to optimize ad placements: Use data to optimize the placement of ads on your website or blog to maximize publisher revenue.
- Work with a reliable ad tech partner: Your ad tech partner should be proactive about your setup and monitor your performance at all times to ensure you're getting the most out of it. Snigel's ad ops experts ensure powerful revenue growth and enhanced user experiences, allowing publishers to concentrate on producing high-quality content. Get in touch to learn how we can help you.
Past Performance Does Not Guarantee Future Results
It's important to remember that past performance does not guarantee future results regarding advertising trends and eCPM. While data we collected from previous years can provide valuable insights into the earning potential of specific dates in 2023, it's essential to remember that the broader economy and advertising trends can be unpredictable and change.
This is particularly true in light of recent events such as the COVID-19 pandemic, which significantly impacted the economy and advertising trends. Therefore, it's essential to use previous years' data as a guide and be aware of differences due to future trends.
Understanding the impact of seasonal advertising spend on eCPM is crucial for maximizing your earning potential as a publisher. By being aware of trends in consumer activity, budget timing, and eCPM fluctuations, you can make informed decisions about when to publish and promote your content. The calendar of eCPM predictions for 2023 that we've provided can serve as a helpful guide for understanding the likely trends throughout the year.
Additionally, by following the tips provided in this guide, such as aligning your content with major holidays, promoting content during key time periods, monitoring eCPM trends, and optimizing ad placements, you can ensure that you are making the most of . Remember, making data-informed decisions is the key to maximizing your earning potential as a publisher.
Snigel's programmatic advertising solution, AdEngine, and expert guidance have helped publishers achieve an average 57% increase in ad revenue since 2012. Contact us today to learn how we can help drive growth for your website.