What is Cost Per Impression Advertising Model

Cost Per Impression:

CPM stands for cost per impression and used as an advertising and online internet marketing model. Recently we covered &  learned another interesting advertising model name is PPC (Pay Per Click). Cost per impression model is most widely used on internet marketing. Similar like PPC model. In CPM advertisers pay to publishers, when an advertisement show each time. In simple words, When each visitors see advertisement so, this would be considered an impression. Advertisers is eligible to pay publisher for each impression.

Cost Per Impression

Utilization of CPM (Cost Per Impression) model inside internet industry is now rising day by day. Almost sites, who have a lot of visitor per day then they adopt CPM model for revenue because much visitors can made much revenue with ease. I already said that, Advertising companies are now prevent fraud persons due to spamming and invalid activities.

Another fascinating thing is that, Advertising companies would exclude your own impression and then determine the active sections of visitors. Keep remember that, Google analytic would also count your own traffic on site so, it is good web-owner’s responsibility to exclude your own traffic through analytic blocker.

Here is important and highlighted point is that, Mostly web-owners and blogger insert more than one ads on single page. So, that’ means, When a visitor came on site page then all ads will be load with page at once and each would be considered an each impression. The entire mechanism of CPM is automatically handled by advertising companies like (Google Adsense, media.net, Chitika). Advertising companies pay the selected part of amount of ads to publishers, When as per thousand impressions will be done on advertisement. So there is no chance to win spammers because spamming word is like a redundant stuff.

Cost Per Impression formula:

Cost Per impression formula similar like PPC but the tiny differ is that, we can acquire formula by divided advertising cost with total number of impression on site.

Cost Per Impression

In the Above shown acquired formula, can be used to find out the CPM. I suggest you to seek/adopt this model for your site, if your site have tons of traffic on daily basis. Let us know , Whats is your opinion and can share experience about advertising models and marketing strategies. 🙂

Pay Per Click Advertising Model

When we talked about advertising models then PPC & CTR are come in major categorize. In the earlier article, We discussed and deal with CPC (Click Through Rate) Now further advertising model continue with PPC. PPC Stands for Pay Per Click, It is also known as another name cost per click. This model is beneficial for advertisers and publishers, They utilize it for direct traffic on website. Internet marketers use this model to several places to maximize his traffic through clicks.

PPC Advertising Model

Actually advertisers utilize this PPC model for publishers or website owners. Advertisers pay the particular selected amount to the publishers, When someone clicks on that advertisement/ads, Which publishers put these ads on his website front-end and user area. Publishers are eligible for that amount, when click is made. Advertisers target his audience through keywords, which is pertinent and relevance with his target market. This usage of keywords is taken implements in his advertisement or campaign.

Publishers also understand and utilize relevant ads on his sites for user-friendly purpose. For example, If we have a blog relevant to information technology then we insert only technology ads on own site neither other because other kinds of ads create disturbance for user to understand the site criteria. Both advertising companies and publishers  collaborate with each other. So, it is essential to match keywords queries with your site criteria.

Spammers are also trying to do fake and invalid clicks. But in this era, Adverting companies are became smart and have automatically system to defend anti fake clicks by dishonest web owners and sharp-witted competitors. Therefore, Now PPC model is protected by advertising companies. They analyze the valid clicks and determine the way of click like, traffic source, IP addresses, ISP (Internet Service Provider) and timing etc then will give you selected part of money.

Pay Per Click Formula:

Sometimes we must need to find the PPC then, To accomplish our need , We can calculate the PPC by divided the advertisement cost with the total number of clicks on advertisement.

Pay Per Click

PPC based on further two primary models, First is flat rate and second is bid based. Advertiser must provide the maximum price of each click on his ads. There are so many other strategies for advertisers that, how much he can investment on his advertisement or campaigns and what he taking benefit from these ads like traffic and revenue etc.

We conclude that, PPC model are for direct traffic and advertiser is eligible to pay publishers for single click. Finally PPC model is now under protection with fraud and invalid clicks. For further queries regarding advertising models, You can concern with us.