|
Cost Per Impression - Definition and Overview |
| Related Words: Xerox, Affect, Affection, Alveolus, Angle, Aquatint, Archetype, Aroma, Aspect, Assumption, Attitude, Attribute, Backlash, Backwash, Badge |
|
|
|
Cost Per Impression (CPM) is a technique for measuring the worth and cost of a specific e-marketing Campaign. Generally the term Impression in this manner equals One Thousand views by a user. This technique is applied with web banners, text links, and e-mail spam.
This type of advertising arrangement closely resembles Television and Print Advertising Methods for speculating the cost of an Advertisement. With Television the Nielsen Ratings are used and Print is based on how many subscriptions a publication has. For a Website the numbers are a bit more exact due to the TCP/IP nature of the Internet.
CPM and/or Flat rate advertising deals are preferred by the Publisher/Webmaster because they will get paid regardless of any action taken.
For Advertisers a Performance Based system is preferred. There are two methods for Paying for Performance: 1) CPA - Cost per Action/Acquisition and 2) CPC - Cost per Click Through
One of the Main reasons CPM remains popular is because Advertisers coming from the TV and Print worlds expect this. For ROI purposes CPA and CPC are much better as the Advertiser can actually track what is and is not producing for them.
Further Reading:
Webopedia Definition (http://www.webopedia.com/TERM/C/cost_per_thousand.html)
CPM and Flat Fee Irrationality (http://www.desertstandard.com/2004/07/flat-fee-and-cpm-irrationality.php)
|
|
|
