Cost Per Impression
Encyclopedia
Cost per impression, often abbreviated to CPI or CPM for Cost per thousand impressions, is a phrase often used in online advertising
and marketing related to web traffic
. It is used for measuring the worth and cost of a specific e-marketing
campaign. This technique is applied with web banner
s, text links, email, and opt-in e-mail advertising. Although opt-in e-mail advertising is more commonly charged on a cost per action
(CPA) basis, sometimes CPM is used.
An online advertisement impression is a single appearance of an advertisement on a web page. Each time an advertisement loads onto a user's screen, the ad server may count that loading as one impression. However, the ad server may be programmed to exclude from the count certain nonqualifying activity such as a reload, internal user actions, and other events that the advertiser and ad serving company agreed to not count. For online advertising, the numbers of views can be a lot more precise. When a user requests a web page, the originating server
creates a log entry. Also, a third party tracker
can be placed in the web page to verify how many accesses that page had. There are other advertising pricing structures, which are generally referred to as Cost Per Action
(CPA) :
CPI and/or Flat rate advertising deals are sometimes preferred by the publisher/webmaster because they will receive a more consistent fee proportional to the amount of traffic.
Today, it is very common for large publishers to charge for most of their advertising inventory on a CPM or CPT basis. A related term, effective cost per mille (eCPM), is used to measure the effectiveness of advertising inventory sold (by the publisher) via a CPC, CPA
, or CPT basis.
This type of advertising arrangement closely resembles television
and print advertising methods for speculating the cost of an advertisement. Often, industry agreed approximates are used. With television, the Nielsen ratings
are used; print is based on the circulation
a publication has.
is frequently used in advertising to represent cost per thousand (the "M" comes from the Latin word "mille," which means thousand). When used in advertising it relates to the cost per thousand page impressions.
For sites earning revenue for advertising impressions, the related abbreviation RPM (revenue per thousand impressions) may be used.
It is important to remember that when someone says something like, "our CPM is $5," this means that the cost per impression is $0.005.
Online advertising
Online advertising is a form of promotion that uses the Internet and World Wide Web to deliver marketing messages to attract customers. Examples of online advertising include contextual ads on search engine results pages, banner ads, blogs, Rich Media Ads, Social network advertising, interstitial...
and marketing related to web traffic
Web traffic
Web traffic is the amount of data sent and received by visitors to a web site. It is a large portion of Internet traffic. This is determined by the number of visitors and the number of pages they visit...
. It is used for measuring the worth and cost of a specific e-marketing
Internet marketing
Internet marketing, also known as digital marketing, web marketing, online marketing, search marketing or e-marketing, is referred to as the marketing of products or services over the Internet...
campaign. This technique is applied with web banner
Web banner
A web banner or banner ad is a form of advertising on the World Wide Web delivered by an ad server. This form of online advertising entails embedding an advertisement into a web page. It is intended to attract traffic to a website by linking to the website of the advertiser...
s, text links, email, and opt-in e-mail advertising. Although opt-in e-mail advertising is more commonly charged on a cost per action
Cost Per Action
Cost Per Action or CPA is an online advertising pricing model, where the advertiser pays for each specified action linked to the advertisement....
(CPA) basis, sometimes CPM is used.
An online advertisement impression is a single appearance of an advertisement on a web page. Each time an advertisement loads onto a user's screen, the ad server may count that loading as one impression. However, the ad server may be programmed to exclude from the count certain nonqualifying activity such as a reload, internal user actions, and other events that the advertiser and ad serving company agreed to not count. For online advertising, the numbers of views can be a lot more precise. When a user requests a web page, the originating server
Server (computing)
In the context of client-server architecture, a server is a computer program running to serve the requests of other programs, the "clients". Thus, the "server" performs some computational task on behalf of "clients"...
creates a log entry. Also, a third party tracker
Web counter
A web counter or hit counter is a computer software program that indicates the number of visitors, or hits, a particular webpage has received...
can be placed in the web page to verify how many accesses that page had. There are other advertising pricing structures, which are generally referred to as Cost Per Action
Cost Per Action
Cost Per Action or CPA is an online advertising pricing model, where the advertiser pays for each specified action linked to the advertisement....
(CPA) :
- CPC - Cost per click Through
- CPL - Cost per lead (lead usually meaning a free registration)
- CPSPay Per SalePay-per-sale or PPS is an online advertisement pricing system where the publisher or website owner is paid on the basis of the number of sales that are directly generated by an advertisement...
- Cost per sale - dCPM - Dynamic CPM
- CTR - Clickthrough rate (the number of clicks on an ad divided by the number of impressions)
CPI and/or Flat rate advertising deals are sometimes preferred by the publisher/webmaster because they will receive a more consistent fee proportional to the amount of traffic.
Today, it is very common for large publishers to charge for most of their advertising inventory on a CPM or CPT basis. A related term, effective cost per mille (eCPM), is used to measure the effectiveness of advertising inventory sold (by the publisher) via a CPC, CPA
Cost Per Action
Cost Per Action or CPA is an online advertising pricing model, where the advertiser pays for each specified action linked to the advertisement....
, or CPT basis.
This type of advertising arrangement closely resembles television
Television
Television is a telecommunication medium for transmitting and receiving moving images that can be monochrome or colored, with accompanying sound...
and print advertising methods for speculating the cost of an advertisement. Often, industry agreed approximates are used. With television, the Nielsen ratings
Nielsen Ratings
Nielsen ratings are the audience measurement systems developed by Nielsen Media Research, in an effort to determine the audience size and composition of television programming in the United States...
are used; print is based on the circulation
Newspaper circulation
A newspaper's circulation is the number of copies it distributes on an average day. Circulation is one of the principal factors used to set advertising rates. Circulation is not always the same as copies sold, often called paid circulation, since some newspapers are distributed without cost to the...
a publication has.
Cost per Thousand
CPMCost Per Mille
Cost per mille , also called cost ‰ and cost per thousand , is a commonly used measurement in advertising. Radio, television, newspaper, magazine, out-of-home advertising, and online advertising can be purchased on the basis of what it costs to show the ad to one thousand viewers...
is frequently used in advertising to represent cost per thousand (the "M" comes from the Latin word "mille," which means thousand). When used in advertising it relates to the cost per thousand page impressions.
For sites earning revenue for advertising impressions, the related abbreviation RPM (revenue per thousand impressions) may be used.
It is important to remember that when someone says something like, "our CPM is $5," this means that the cost per impression is $0.005.
See also
- Internet marketingInternet marketingInternet marketing, also known as digital marketing, web marketing, online marketing, search marketing or e-marketing, is referred to as the marketing of products or services over the Internet...
- Click-through rateClick-through rateClickthrough rate is a way of measuring the success of an online advertising campaign. The clickthrough rate of an advertisement is defined as the number of clicks on an ad divided by the number of times the ad is shown , expressed as a percentage. For example, if a banner ad is delivered 100...
- Cost per milleCost Per MilleCost per mille , also called cost ‰ and cost per thousand , is a commonly used measurement in advertising. Radio, television, newspaper, magazine, out-of-home advertising, and online advertising can be purchased on the basis of what it costs to show the ad to one thousand viewers...
- Effective cost per mille
- Cost per thousand
- Pay per clickPay per clickPay per click is an Internet advertising model used to direct traffic to websites, where advertisers pay the publisher when the ad is clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market...
- Cost per actionCost Per ActionCost Per Action or CPA is an online advertising pricing model, where the advertiser pays for each specified action linked to the advertisement....
- Cost per click
- Effective cost per action
- Cost per time
- CPM#Marketing
- Compensation methodsCompensation methodsCompensation methods , Pricing models and business models used for the different types of internet marketing, including affiliate marketing, contextual advertising, search engine marketing and display advertising.-Predominant compensation methods in affiliate marketing:The following models...
- Performance-based advertisingPerformance-based advertisingWith performance-based advertising, the advertiser pays only for measurable results.With other forms of advertising they pay regardless of results....