What is Cost Per Impression [CPI] and How to calculate it?

What is Cost Per Impression?

Cost Per Impression (CPI) is a measure of the cost of paying for the 1000 impressions their ad appears on. CPI helps identify other calculations for ads such as CPC (click-through price) and CTR (click-through rate).

A digital marketer bids at the price of one (thousand) impressions before the actual ad is shown. These bids help determine whether the ad should be shown before other ads or its overall ranking in placement.

What is the difference between Impression and page views?

Displaying an ad to a user while viewing a web page is an impression. A web page can have many ads. In such cases, a single pageview for each ad displayed can lead to an effect. In order to calculate the submitted effects as accurately as possible and to prevent fraud, unqualified activities such as ad-server page-refresh or other user actions may be excluded from being counted as seals. When ad rates are described as CPM or CPI, it is the amount paid for every thousand eligible stamps.

How to calculate Cost Per Impression [CPI] or [CPM]

To determine CPM, divide your total cost by the number of impressions.

CPM = Total Promotional Expenditure Number Impressions X 1,000

So, for example,

$ 2,000 Advertising Cost 750,000 Impressions X 1,000 = $ 02.66

Or to obtain other values ​​in the equation:

Total campaign cost = Total impressions 1000 x CPM
Total impressions = campaign cost CPM x 1,000

The cost per Impression is taken from the advertising costs and the number of stamps or simply impressions.

Cost ($) per Impression = advertising cost ($) / number of stamps

The price per impression is often expressed as the cost per thousand impressions (CPM) to facilitate the management of numbers.

Example of CPI or Cost Per Impression

Let’s look at one of the examples. An advertiser has a budget of $ 200 and wants to get 10,000 ad views on the top-ranking online media resource. The calculation is as follows:

CPM = $ 300 / 10,000 1,000

CPM = $ 30

That means it costs $ 30 to display a thousand ads.

The next example shows how digital marketing can calculate the total number of effects when the campaign cost and the CPM rate are constant. The seller will provide you genuine articles as he does not want to tarnish his own image. They are willing to pay $ 20 for a thousand stamps. The total number of ad views is as follows:

Total impressions = $ 300 / $ 20 1,000

That’s all about CPI. Hope You like d the content. Don’t forget to share and subscribe. Do leave your comment in the description Thank You.