Cost per impression

Cost per impression

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.[1] It is used for measuring the worth and cost of a specific e-marketing campaign. This technique is applied with web banners, 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) :

  • CPC - Cost per click Through
  • CPL - Cost per lead (lead usually meaning a free registration)
  • CPS - 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, 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.

Contents

Cost per Thousand

CPM 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.[2]

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

References

Further reading

  • Chaffey, Dave; et al. (2006). Internet Marketing: Strategy, Implementation and Practice (3rd ed.). Harlow, England: Prentice Hall. ISBN 0273694057. 

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Look at other dictionaries:

  • cost per impression — ˌcost per imˈpression abbreviation CPI noun [uncountable] MARKETING the cost of an advertisement, divided by the number of times that people see it : • Average cost per impression is less than one cent. * * * cost per impression UK US noun [U or… …   Financial and business terms

  • Cost Per Engagement — (CPE) is an online advertising pricing structure introduced into the market in 2008. [ [http://www.techcrunch.com/2008/07/09/videoegg launches new video ad units maybe youtube should pay attention TechCrunch] , TechCrunch (2008 7 9)] Differing… …   Wikipedia

  • Cost per click — (CPC) is the amount of money an advertiser pays search engines and other Internet publishers for a single click on its advertisement that brings one visitor to its website.ee also* Ad serving * Click through rate (CTR) * Compensation methods *… …   Wikipedia

  • Cost per engagement — The term Cost Per Engagement was originated in late 2006 by Highedge, Inc., the company that developed the Brickfish social media advertising network. Highedge, Inc. owns the Cost Per Engagement trademark. Cost Per Engagement is the online… …   Wikipedia

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  • Cost per mille — For CPM related to internet marketing, see Cost per impression ECPM redirects here. It is also short for European Christian Political Movement. Cost per mille (CPM), also called cost ‰ and cost per thousand (CPT) (in Latin mille means thousand),… …   Wikipedia

  • Cost per Activity — Internet marketing Display advertising Email marketing E mail marketing software Interactive advertising …   Wikipedia

  • Cost per Lead — Internet marketing Display advertising Email marketing E mail marketing software Interactive advertising …   Wikipedia

  • Cost Per Click - CPC — A website that uses CPCs would bill by the number of times a visitor clicks on a banner instead of by the number of impressions. Cost per click is often used when advertisers have a set daily budget. When the advertiser s budget is hit, the ad is …   Investment dictionary

  • impression — im‧pres‧ssion [ɪmˈpreʆn] noun [countable] MARKETING an occasion when a particular advertisement is seen by someone on the Internet: • A log of ad impressions is kept by the site server. * * * impression UK US /ɪmˈpreʃən/ noun [C] ► (also …   Financial and business terms

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