Cost-per-impression (CPI) is a digital advertising model that measures the cost of each impression or view received by an advertisement. An impression refers to the number of times an ad is displayed to a user, regardless of whether the user clicks on it or not. CPI is commonly used in online advertising and is a key metric for measuring the success of a campaign. In this definition, we will delve deeper into what CPI is, why it is important, and who uses it.
What is CPI?
CPI is a pricing model where advertisers pay for the number of impressions their ad receives. It is often used in display ads, such as banner ads or video ads, and is calculated by dividing the total cost of the ad campaign by the number of impressions received. For example, if an advertiser pays $100 for 100,000 impressions, the CPI would be $0.001 per impression.
Why is it Important?
CPI is an important metric for advertisers as it helps them understand the effectiveness of their campaigns. By knowing how much they are paying for each impression, they can determine whether their campaign is cost-effective and make informed decisions about future advertising investments. In addition, CPI allows advertisers to compare the performance of different ad campaigns and make adjustments accordingly.
Who Uses CPI?
CPI is used by a variety of digital advertisers, including businesses, brands, and agencies. Businesses and brands use CPI to track the success of their digital marketing efforts and ensure they are reaching their target audience. Agencies, on the other hand, use CPI to show their clients the cost-effectiveness of their services and the impact of their campaigns.
Use Cases and Applicability
CPI is a popular pricing model used in various digital advertising channels, including social media, search engine marketing, and programmatic advertising. It is especially useful for display advertising, where the goal is to increase brand awareness and reach a large audience. CPI is also commonly used in influencer marketing, where advertisers pay for the number of views or impressions their sponsored content receives on social media platforms.
Synonyms for CPI
Other terms related to CPI include cost per mille (CPM), which measures the cost per thousand impressions, and cost per engagement (CPE), which measures the cost for each engagement with an ad, such as a click or a conversion. These terms are often used interchangeably, but it’s important to note that they measure different metrics within the digital advertising landscape.
In summary, cost-per-impression (CPI) is a pricing model used in digital advertising to measure the cost of each impression or view an ad receives. It is an important metric for advertisers to track the success of their campaigns and make informed decisions about their advertising investments. CPI is commonly used in display advertising, influencer marketing, and various other digital advertising channels, and is an essential tool for businesses, brands, and agencies in today’s digital world.