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 showing the ad as often as possible. The PPI model is particularly suitable for campaigns that aim to reach a wide audience and increase the awareness of a brand or product.

Billing is typically 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 shown 1,000 times. The price per 1,000 impressions varies depending on the platform, target audience, and ad placement.

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

Another important aspect of PPI is the importance of viewability. To ensure that paid impressions are actually seen by users, advertisers pay attention to ensuring their ads have high viewability. This means that the ads appear in a visible area of the website and not, for example, off-screen or in areas that users might easily overlook.

In summary, Pay per Impression (PPI) is a billing model where advertisers pay for the visibility of their ads. It is ideal for campaigns aiming to maximize reach and increase brand awareness. By paying per 1,000 impressions, companies can strategically control the spread of their advertising messages and efficiently manage their advertising expenses.