EPMV, which stands for "Earnings Per Thousand Visitors," is a key metric for understanding the revenue generated from website traffic. It is calculated by dividing total earnings by the number of visitors (per thousand). The formula is as follows:
EPMV = Total Earnings / (Visitors / 1,000)
For example, if a website earned $6,500 from 1,000,000 visits in March, the EPMV would be calculated as $6.50.
Several factors influence the revenue earned by a website, including:
- the number of visits
- the number of ads displayed per session
- the bounce rate of landing pages
- the number of pages viewed per visit
- upstream traffic sources
- time of day
- ad types (display, native, inline, etc.)
- RTB bidding parameters
- viewport size
- the connection speed of users
These factors and many more contribute to the overall revenue.
Unlike RPM (Revenue Per Thousand Page Views), which measures revenue per 1,000 page views, EPMV provides a more holistic view of monetization. RPM can be misleading because it doesn't account for the number of ads per page, which can distort the understanding of monetization success. For instance, increasing RPM by adding more ads per page might raise RPM but negatively impact user experience, bounce rates, and overall revenue.
In contrast, EPMV considers the direct impact ads have on user behavior, such as bounce rates and page views per visit. This makes EPMV a more accurate measure of the actual revenue earned from visitors, considering both the positive and negative effects of ads on user experience.
For example, a site with a higher RPM but fewer page views due to increased bounce rates might earn less overall than a site with a lower RPM but higher page views. EPMV reflects these dynamics more accurately.
It's also essential to monitor EPMV to account for seasonal changes in traffic. Daily traffic numbers alone can be misleading. Comparing two Sundays, where one generated $500 from 100,000 visits and another generated $380 from 60,000 visits, EPMV reveals that the latter was better monetized ($6.33 compared to $5.00), despite lower total earnings.
In summary, EPMV or 'Session earnings' is the most reliable metric for measuring revenue while accounting for external factors such as seasonality and UX changes. It provides a more accurate picture of the value created from each visitor compared to other metrics like RPM, CPM, or daily revenue, which can often give false positives and are less reliable indicators of monetization success.