CPM Online Advertising
CPM online advertising (cost per thousand impressions or CPI) is an expression used in Internet advertising as it relates to the site traffic. It simple terms, CPM is utilized to determine the cost and worth of a marketing or ad campaign.
Usage
This method is used in various internet services, including opt-in e-mail advertising, e-mail spam, text links and web banners. It should be stated that most opt-in e-mail advertising is conducted via CP or cost per action. However, cost per thousand impressions is also now being applied.
Definition and Application
A web page ad impression refers to one appearance or loading of the ad onto the web page. Every time the ad is loaded on a user’s monitor, the ad server will count it as a single impression. This is not always the case however.
In some forms of CPM online advertising, the server is instructed to discard from the count certain actions. These may include internal user actions and reloading. The ad serving company and advertiser may also agree on other stipulations to define the impression count.
When it comes to web advertising, the number of views can be very accurate. For example, when an individual asks for the web page, the server will make a log entry. In addition, a 3rd party tracking software may be used to evaluate the page accesses.
Benefits of CPI
Other types of ad pricing include CPL – cost per lead (lead usually suggesting a free registration), dCPM – dynamic CPM, CPS – cost per sale and CPC – cost per click through. However, CPI is often preferred by webmasters and publishers. The reason is that it generates a consistent fee relative to the traffic.
It is for this reason that the major publishers charge the ad inventory via CPM. eCPM (effective cost per mile) is utilized to gauge the efficiency of the advertising inventory sold by way of CPT, CPC or CPA basis.
The advertising configuration is similar to print and TV advertising methods. The objective is the same: to determine the cost of advertising. In the case of TV, ratings are utilized, while for the print media it is circulation.
When sites are making money with these ad impressions, the phrase RPM (revenue per thousand impressions) is sometimes used.
Because of the rapid growth of the Internet, more and more advertisers are seeking ways to get their products noticed. By using CPM online advertising, the costs and effectiveness may be determined precisely.
