Pay Per Impression is also called ‘cost per thousand impression’ (CPM – the letter “M” in the abbreviation is the Roman numeral for one thousand). It is one of the cost effective online marketing campaign, where you need to pay for the number of times your ad is viewed by the customers while viewing other websites, regardless whether the customer has clicked the ad or not.
Here you can easily track the number of impressions on your ads and you can also track the results of your PPM campaign. Pay per impression is similar to other marketing methods like newspaper or magazine, where the advertiser has to pay only when the advertisement has appeared for a specific number of times.
How is CPM calculated: CPM is derived from advertising cost and the number of impressions.
- Cost per impression ($) = Advertising cost ($) ÷ Number of Impressions (#)
- Google Ad-words: This allows you to place your text ads in Google Display Network and image ads in your website.
- Facebook Ad: These ads generally appear on the right hand side of Facebook page.
- LinkedIn Ads: These ads appear on the right hand side of the LinkedIn page under the “Ads by LinkedIn Members”
Benefits of CPM:
- It is one of the fastest and effective method of advertising your business in the online world.
- Your ad gets a large number of viewers or impression.
- It is cost-effective when compared to other online advertising campaigns.
- Your ad gets more exposure.
- It generates organic listing in the search results.
- It increases your brand awareness.
Drawbacks of CPM:
- You cannot measure the results accurately because you may not consider all the impressions as useful.
- Your ad may be often exposed to the user which may be not relevant to the users search.
CPM bidding: In CPM advertising, you have to pay to the publisher for every thousand impressions i.e. on every appearance of your ad in front of the user it is taken as a impression. Here you have to bid with the publisher based on how much you would like to spend on thousand impressions. The maximum you bid, the greater the chances of your ad visibility to larger audience. Therefore, plan your budget and bid on those places where your site can get relevant impression for your business.