And here is another acronym tackled by our real-time writing team. CPI.
WHAT IS CPI?
CPI is (another) digital marketing acronym that stands for “Cost per Impression.” Like
CPC , CPI is a pricing model for digital ads. Unlike CPC, however, which is based on the
number of potential customers’ clicks on your ad (so you only pay for the clicks), CPI is
based on the number of impressions made on potential customers. No clicking required.
WHAT’S AN IMPRESSION?
An impression is when an ad shows up on someone’s screen. This could be in a banner
along the top of a website or a box on the sidebar, or among one’s “feed” on a social
media platform. Similar to the way in which TV or radio ads are priced based on
audience, CPI is usually priced per thousand impressions (it’s also called CPM
sometimes – M being the roman numeral for thousand). That’s 1,000 people surfing or
scrolling and seeing your ad somewhere on the screen.
WHY USE CPI?
CPC might seem a better use of advertising budget – after all, you’re only paying for the
really interested viewers, not the ones who might be ignoring your ad completely – but
CPI is of course far cheaper, and is more appropriate for certain ad campaigns. Building
brand awareness and delivering a specific message don’t require click-throughs to have
great value. The coffee shop offering extended business hours or the return of a
seasonal beverage doesn’t need customers to click on their ad to get their message
across. Similarly, a banner ad for a car dealership at the top of your local news website
helps establish their presence in the area – and in buyers’ minds.
Now, if an advertiser is targeting more of a niche market, then CPC may be a better
choice. Motorcycle gear and basketweaving classes are not high interest to the general
public, but if that’s your business, it’s certainly worth more to reach those who are
IS CPI RIGHT FOR YOU?
Using CPI ads can be an important part of your digital marketing strategy. If your
business is trying to establish a solid presence or increase brand recognition, CPI can
be a great way to build that.