Pay per Impression (PPI)

Pay per Impression (PPI), also known as Cost per Thousand Impressions (CPM), is a billing model in online advertising where advertisers pay for the number of times their ad is displayed, regardless of whether the ad is clicked or not. An impression is counted each time an ad is loaded and made visible on a webpage.

A central aspect of PPI is the measurement of reach. Unlike Pay per Click (PPC), where advertisers only pay for actual clicks, PPI aims to increase visibility and brand awareness by having the ad shown as often as possible. The PPI model is particularly well-suited for campaigns aimed at reaching a broad audience and increasing brand or product awareness.

Billing is usually based on 1,000 impressions, which is referred to as CPM (Cost per Mille). The advertiser pays a set amount when their ad has been displayed 1,000 times. The price per 1,000 impressions varies depending on the platform, target audience, and ad placement.

Example: A company places a banner ad on a website and agrees to a CPM of 5 euros. If the ad is displayed 10,000 times, the cost will amount to 50 euros (5 euros x 10).

Another important aspect of PPI is the concept of viewability. To ensure that the paid impressions are actually seen by users, advertisers focus on achieving high viewability for their ads. This means that the ads appear in a visible area of the webpage, rather than outside the screen or in areas easily overlooked by users.

In summary, Pay per Impression (PPI) is a billing model where advertisers pay for the visibility of their ads. It is ideal for campaigns aimed at maximizing reach and increasing brand awareness. By paying per 1,000 impressions, companies can strategically manage the dissemination of their advertising messages and efficiently control their ad spending.