When buying anything, people always ask the same questions: “How much does it cost?” followed by “Why so much?” The digital advertising ecosystem is no different. Advertisers want to evaluate how well resources are being used for their campaigns, and publishers just want to know if they can make more money. Find out more in THE YIELDBIRD BURGER INDEX REPORT. Spice up your eCPM rates!
The eCPM (effective cost per mille) is the primary benchmark for comparing the value of your ads across different campaigns, services, or countries. It is calculated according to this formula:
Ad request eCPM = Revenue / Ad requests
Purchasing Power Parity: eCPM and the value of burger
As with the price of a square meter in a city not telling us how much an apartment is really worth, eCPM should not be the only indicator that we take into account. The price of the apartment meter can be compared to the average earnings in a given agglomeration or to tourist traffic (depending on whether we buy it for long or short term rent).
To assess the potential development of programmatic advertising on a given market, the eCPM can be compared to GDP per capita, indices of the digitization of economy and society, or the value of the advertising market. We were inspired by the editors of “The Economist”, who, since 1986, have been determining the over- or under-valuation of local currencies based on the price of the cult Big Mac sandwich. Unfortunately, it turned out that we cannot apply their idea… because you can’t buy a Big Mac in every country we were interested in.
However, we didn’t give up and we created our own Yieldbird Burger, which anyone can make at home based on widely available indicators. So we came up with this home-made burger recipe.
Have it your way: four flavours to choose from
The price of the Yieldbird Burger provided the basis for calculating what portion you could have for one eCPM. This is what we’ve called the eCPM Yieldbird Index.
This metric allowed us to distinguish four groups of countries:
Hungry – Countries that are just getting to know the taste of digital advertising.
Tasting – Countries in which we expect a large increase in appetite for programmatic.
Greedy – Markets where there already is some saturation, which results in an increased
interest in more advanced programmatic solutions.
Gourmets – Five-star programmatic world leaders who set trends.
Hungry for more? Feel free to download the full report below and gain more insights on the potential development of programmatic advertising in the country you are most interested in.
Follow this link and enjoy your report! Or click the picture below.