What is Cost-per-impression ?
‘Cost-per-impression’ refers to the cost per view of an online advertisement. In such an advertisement model, money is paid based on the number of people who view the ad online.
In this context, the word ‘impression’ refers to an individual view of the ad. The cost per impression helps the advertiser understand whether the ROI of the ad has been profitable as the impressions are similar to the viewership or readership of traditional ad channels.
To calculate the cost per impression, one should divide the total cost of the advertising campaign by the total amount of impressions it received. However, in the case of websites where the traffic might be in millions, the cost per impression might also be given in ‘cost per 1000 impressions’, which is denoted as CPM.