Cost Per Impression
by: clearpath on Sat, 30 Jan 2010 at: 11:37 AM Go to: Previous Article Next Article
Another type of online advertising that doesn’t have much to do with keywords or search engines, but should be noted is cost per impression (CPI) advertising. In CPI, websites that wish to increase their visibility can choose to advertise on various websites. In a CPI relationship, the advertising website agrees to pay the hosting site for ads placed on the site. They will usually pay for this advertising based on the number of times visitors to that site will see the ad. Think of CPI this way: newspapers have advertising in them. The more popular the newspaper, the more expensive the ad. The company that places the ad in the newspaper will pay a specific amount for each placement of the ad, depending on the number of readers who read that newspaper.
CPI is similar. The website that’s advertising will pay the hosting site where the advertising appears, a certain amount for a certain number of impressions. For example, if SoldGoldWidgets.com wants to advertise their site on another website that uses CPI advertising, SoldGoldWidgets.com will pay the hosting site a certain amount of money, and in exchange, the hosting site will agree to post that ad on their site a certain number of times.
CPI is a good way to gain visibility, though there are no guarantees as to this method’s effectiveness. Since companies are paying for these ads regardless of whether someone clicks on them, an ad could be wildly successful or a total flop. On the plus side, this type of advertising can be cheaper than pay per click, and may be the only way to advertise on certain websites.
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