Cost-Per-Impression (CPI) Definition:
Cost-Per-Impression (CPI) is a digital advertising metric that measures the cost of an advertisement based on how many times it is viewed by users. CPI is commonly used in online advertising, where advertisers pay for every time their ad is displayed, regardless of whether the user clicks on it.
Key Features of Cost-Per-Impression:
- Impression-Based Pricing:
Advertisers are charged based on the number of times their ad is shown, rather than the number of clicks or actions taken by users. - Brand Awareness:
CPI is often used for campaigns focused on brand awareness, where the goal is to get the ad seen by as many people as possible. - Cost Efficiency:
CPI can be a cost-effective way to reach a large audience, especially in display advertising, where ads are shown across a network of websites.
How Does Cost-Per-Impression Work?
In a CPI model, advertisers bid on ad placements based on the cost per 1,000 impressions (often referred to as CPM, or Cost-Per-Mille). The ad is then displayed on websites, apps, or other digital platforms within the advertiser’s target audience. Advertisers are charged based on the number of impressions their ad receives, regardless of whether users interact with the ad. CPI is commonly used in display advertising, social media campaigns, and other forms of digital marketing aimed at increasing brand visibility.
Best Practices for Using Cost-Per-Impression
- Target Your Audience:
Use precise targeting options to ensure that your ads are shown to the right audience, maximizing the effectiveness of each impression. - Optimize Creative:
Ensure that your ad creative is engaging and visually appealing to capture users’ attention and make the most of each impression. - Monitor Performance:
Regularly monitor the performance of your CPI campaigns, adjusting your targeting, bidding, and creative as needed to improve results. - Combine with Other Metrics:
Use CPI in conjunction with other metrics, such as click-through rate (CTR) and conversion rate, to get a more complete picture of your campaign’s effectiveness.
