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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.
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.
CPP is the cost of an advertising campaign, relative to the rating points delivered. In a manner similar to CPM, cost per point measures the cost per rating point for an advertising campaign by dividing the cost of the advertising by the rating points delivered. [4] The American Marketing Association defines cost-per-rating-point (CPR or CPRP) as:
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.
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.
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