Posted in Marketing and Strategy Terms, Total Reads: 1447
Pay-per-Impression or Cost Per Impression (CPI) or Cost Per Thousand (CPM where M is the roman symbol for thousand) is used in online advertising. It defines how the payment will be done by the advertiser to the publisher.
Usually, this is done in various ways – Cost Per Click and Cost Per Impression. In the first method, the advertiser pays for the advertisements on the basis of clicks it gets or the leads generated. In the second method, the advertisers pay for the number of times the advertisement is displayed on the publisher’s website. It is a fixed amount and is normally measured in thousands. For example, suppose the CPI for a company X is $2. Then for every thousand times the advertisement is displayed on the publisher’s website, the advertiser pays the publisher $2.
Cost Per Impression has an advantage over the Cost Per Click method, it gives the advertiser an idea of how much it is spending on the advertisements. By deciding mutually how the advertisements will be displayed, the payable amount can be deduced.
Example: Banner ads on websites for $20 are an example of CPM where $20 is to be paid to the publisher for every 1000 times the page is loaded.