Cost per Impression (CPM) is a pricing model used in online advertising where the advertiser pays a fee for every 1,000 impressions, or views, of their ad. Impression-based advertising is a common approach for brands that want to increase brand awareness and reach a large audience, as it allows them to get their message in front of many people, regardless of whether the ad is clicked.
The cost per impression can vary widely depending on several factors, including the advertising platform, the target audience, the ad format, and the market’s competitiveness. Some advertising platforms, such as Facebook and Instagram, may have a higher Cost Per Impression (CPM) than others. In comparison, some industries and target audiences may also have a higher CPM due to high competition.
Advertisers need to track their Cost Per Impression (CPM) and return on investment (ROI) to ensure they get the best value for their advertising spend. While a high CPM may result in a large audience reaches, it may not necessarily result in a high return on investment if the ad is ineffective in generating conversions or desired actions. Advertisers should regularly monitor and optimize their campaigns to ensure that they deliver the desired results and generate a positive investment return.
Also, See: Cost Per Acquisition (CPA)