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Cost per impression, along with pay-per-click (PPC) and cost per order, is used to assess the cost-effectiveness and profitability of online advertising. [1] Cost per impression is the closest online advertising strategy to those offered in other media such as television, radio or print, which sell advertising based on estimated viewership, listenership, or readership.
Cost per impression (also called cost per mille) is a marketing strategy put in place by various advertising networks, where an advert is placed on a relevant website, usually targeted to the content sector of that site. The advertiser then pays for every time the advert is displayed to a user.
Pay-per-click (PPC) has an advantage over cost-per-impression in that it conveys information about how effective the advertising was. Clicks are a way to measure attention and interest. If the main purpose of an ad is to generate a click, or more specifically drive traffic to a destination, then pay-per-click is the preferred metric.
Advertisers and publishers use a wide range of payment calculation methods. In 2012, advertisers calculated 32% of online advertising transactions on a cost-per-impression basis, 66% on customer performance (e.g. cost per click or cost per acquisition), and 2% on hybrids of impression and performance methods. [30]: 17
CPM (cost-per-mille, or cost-per-thousand) Pricing models charge advertisers for impressions, i.e. the number of times people view an advertisement. Display advertising is commonly sold on a CPM pricing model. The problem with CPM advertising is that advertisers are charged even if the target audience does not click on the advertisement.
Pay-per-Sale Search Engine Marketing is a variant of pay-per-sale, whereby the traffic source is largely search engine traffic, such as that from Google's AdWords "pay-per-click" system. The business model means that merchants no longer bear the cost of "pay-per-click"; instead, the "pay-per-sale" provider takes on the risk of conversion.
Counting impressions is the method by which most Web advertising is accounted and paid for, and the cost is quoted in CPM (cost per thousand impressions) or CPI (cost per impression). (Contrast CPC, which is the cost per click and not impression-based).
Pay-per-click; Cost per impression; ... but can be used as a tool for business and market research ... common definition of impression is an instance of an ...