Cost per impression (CPM) is a pricing model used in online advertising, where advertisers are charged based on the number of times their ad is shown, regardless of whether it is clicked on or not. CPM is usually expressed in terms of cost per thousand impressions, so if an ad has a CPM of $2, it means that the advertiser will pay $2 for every thousand times their ad is shown. This pricing model is often used for brand awareness campaigns, where the goal is to get as many people to see the ad as possible, rather than to generate clicks or conversions.
Cost per impression is calculated by dividing the cost of the ad campaign by the number of impressions. For example, if an ad campaign costs $200 and generates 2 million impressions, the CPM would be $2.00.
The main benefit of cost per impression is that it allows advertisers to reach a large number of people with their message. CPM is a good option for brand awareness campaigns, where the goal is to get as many people to see the ad as possible. It is also a good option for reach-based campaigns, where the goal is to reach a specific number of people. CPM is a good option for advertisers who want to control their costs, as they only pay when their ad is shown.
The main drawback of cost per impression is that it can be expensive, especially if the advertiser wants to reach a large number of people. CPM is also less effective for campaigns that are focused on clicks or conversions, as the advertiser will pay even if no one clicks on their ad.
There are a few things you can do to improve your cost per impression. First, you can target your ad to a specific audience. This will help to ensure that your ad is shown to people who are more likely to be interested in it. Second, you can use creative and relevant ad copy. This will help to ensure that people who see your ad are more likely to remember it. Finally, you can use a strong call to action. This will encourage people who see your ad to take the desired action, such as clicking on your ad or visiting your website.