Terms

Cost Per Impression

Cost Per Impression (CPI) is the price an advertiser pays each time their advertisement is displayed to a potential customer. Because the cost for a single view is often a fraction of a cent, this metric is more commonly expressed as Cost Per Mille (CPM), which represents the price for one thousand impressions.

Importance of Cost Per Impression in Advertising

Cost Per Impression is crucial for evaluating an ad campaign's reach and cost-effectiveness. It helps marketers determine if a campaign is reaching a large enough audience to justify the expense. This metric is valuable for comparing online advertising against traditional media like television or print.

The metric is vital for campaigns focused on boosting brand awareness over direct sales. For startups or new products, CPI helps build recognition and visibility in the market. It allows advertisers to gauge the efficiency of different channels and optimize their strategy accordingly.

Factors Influencing Cost Per Impression

The cost per impression isn't a fixed number; it's a dynamic metric influenced by a multitude of factors. These variables can range from the audience you're targeting to the time of year, causing rates to fluctuate significantly across different campaigns and platforms.

  • Audience: The specificity of your targeting, including demographics, location, and interests.
  • Quality: The creative appeal of your ad and its relevance to the viewer.
  • Placement: The platform, device, and specific ad location where the impression occurs.
  • Timing: The seasonality and time of day, as competition and user activity fluctuate.

Cost Per Impression vs. Cost Per Mille

While often used interchangeably, Cost Per Impression (CPI) and Cost Per Mille (CPM) differ primarily in their scale of measurement and practical application.

  • CPI: This is the cost for a single ad view. It offers a granular metric useful for comparing digital ads to traditional media. However, its fractional value is less practical for large-scale digital campaigns where enterprises and mid-market companies need standardized metrics for budgeting and reporting.
  • CPM: This metric represents the cost per one thousand impressions, making it the industry standard for digital advertising. It simplifies reporting for large brand awareness campaigns, allowing companies to easily compare costs across different channels, though it does not measure direct engagement.

Strategies to Optimize Cost Per Impression

Optimizing your Cost Per Impression is key to maximizing your advertising budget and campaign reach. By implementing strategic adjustments, you can lower costs while improving ad effectiveness. These strategies focus on enhancing ad quality, refining targeting, and paying only for valuable views.

  • Relevance: Tailor ads to your audience's interests and demographics to boost engagement and lower costs.
  • Creative: Use compelling visuals, copy, and clear calls-to-action to make ads more effective.
  • Targeting: Refine your audience, using broader segments for reach or lookalikes for efficiency.
  • Frequency: Cap how often a user sees your ad to prevent fatigue and wasted spend.
  • Viewability: Use viewable CPM standards to ensure you only pay for impressions that are actually seen.

Analyzing Cost Per Impression Metrics

Analyzing CPI metrics is essential for understanding campaign performance and making data-driven decisions. It allows marketers to evaluate the efficiency of their ad spend in terms of audience reach and exposure. This analysis provides a clear picture of how effectively a campaign is building brand awareness across different channels.

  • Efficiency: Compare costs across different channels to determine the most effective placements.
  • Budgeting: Inform spending decisions and justify budget allocation for campaigns.
  • Goal Alignment: Evaluate performance based on whether the primary goal is brand awareness or direct conversions.

Frequently Asked Questions about Cost Per Impression

Is a lower CPI always a good thing?

Not necessarily. While a low CPI indicates cost-efficient reach, it doesn't guarantee quality impressions. It's crucial to balance cost with audience quality and engagement metrics to ensure your campaign effectively meets its primary objectives, whether that's awareness or eventual conversion.

How does CPI relate to Return on Investment (ROI)?

CPI is an initial cost metric, not a direct measure of ROI. It quantifies the expense of getting your ad seen. To calculate ROI, you must connect these impressions to subsequent actions like clicks, leads, and sales, thereby linking the cost of visibility to actual revenue.

When should I prioritize CPI over Cost Per Action (CPA)?

Focus on CPI for top-of-funnel brand awareness campaigns where maximizing exposure is the goal. Prioritize CPA for bottom-of-funnel campaigns aimed at driving specific, measurable actions like sign-ups or purchases, as it directly ties ad spend to conversions and business outcomes.

Other terms

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Account-Based Marketing Software

Account-Based Marketing (ABM) software helps teams coordinate personalized marketing and sales efforts to land high-value customer accounts.

Account-Based Marketing Software

Sales Coach

A sales coach is a mentor who trains and guides sales reps to enhance their skills, boost performance, and ultimately close more deals effectively.

Sales Coach

Chatbots

Chatbots are AI-powered programs that simulate human conversation. They interact with users via text or voice, typically for customer support.

Chatbots

Internal signals

Internal signals are data points from your own systems, like website visits or product usage, that indicate a customer's buying intent.

Internal signals

Salesforce Object Query Language

Salesforce Object Query Language (SOQL) is a query language used to search your organization's Salesforce data for specific information.

Salesforce Object Query Language

Warm Outreach

Warm outreach is contacting prospects with whom you have a pre-existing connection, like a mutual contact, making your message more personal and effective.

Warm Outreach

Branded Keywords

Learn about branded keywords, including identifying your branded keywords, & strategies for optimizing branded keywords.

Branded Keywords

Sales Cycle

A sales cycle is the series of steps a company takes to close a new customer. It starts with prospecting and ends with a signed deal.

Sales Cycle

SDK

A Software Development Kit (SDK) is a set of tools that allows developers to create applications for a specific software package or platform.

SDK

Buying Intent

Buying intent is the collection of online cues and behaviors that signal a prospect is actively researching and moving toward a purchase decision.

Buying Intent

Marketing Analytics

Marketing analytics involves measuring and analyzing marketing data to understand campaign performance and improve return on investment (ROI).

Marketing Analytics

OAuth

OAuth is an open standard for access delegation. It lets you grant apps access to your data on other services without sharing your password.

OAuth

DMP

A Data Management Platform (DMP) is a tech platform used to collect and manage data, mainly for digital marketing and advertising campaigns.

DMP

Customer Data Management (CDM)

Customer Data Management (CDM) is the process of collecting, organizing, and analyzing customer data to create a unified view of your audience.

Customer Data Management (CDM)

Content Syndication

Content syndication is the process of republishing your web content on third-party sites to reach a much wider audience.

Content Syndication

Content Rights Management

Content Rights Management involves controlling the use and distribution of copyrighted digital media to protect intellectual property.

Content Rights Management

GPCTBA/C&I

GPCTBA/C&I is a sales qualification framework for understanding a prospect's goals, plans, challenges, timeline, budget, and authority.

GPCTBA/C&I

Net Revenue Retention (NRR)

Net Revenue Retention (NRR) is the percentage of recurring revenue kept from existing customers, including upsells, downgrades, and churn.

Net Revenue Retention (NRR)

Competitive Analysis

Competitive analysis means identifying your rivals and assessing their strategies to pinpoint your own business's strengths and weaknesses.

Competitive Analysis

Demographic Segmentation in Marketing

Demographic segmentation divides a market into groups based on traits like age, gender, and income, allowing for more targeted marketing efforts.

Demographic Segmentation in Marketing

Video Hosting

Video hosting is a service that allows users to upload, store, and share video content online, making it accessible for playback anywhere.

Video Hosting

Inbound leads

Inbound leads are potential customers who proactively reach out after finding your business through content, social media, or search.

Inbound leads

Open Rate

The open rate is the percentage of recipients who opened an email. It's a primary indicator of a subject line's effectiveness.

Open Rate

Functional Testing

Functional testing verifies that software performs its intended functions as specified in the requirements, ensuring it works as users expect.

Functional Testing

SEO

SEO, or Search Engine Optimization, is increasing the quantity and quality of traffic to your website through organic search results.

SEO

Digital Advertising

Digital advertising is the practice of delivering promotional content to users through various online and digital channels like social media or search engines.

Digital Advertising

Responsive Design

Responsive design is an approach where a website's layout adapts to the user's screen size, providing an optimal experience on any device.

Responsive Design

Sales Calls

A sales call is a real-time conversation between a salesperson and a prospect, aiming to persuade them to purchase a product or service.

Sales Calls

Average Customer Life

Average Customer Life is the average time someone remains a customer. It's a key metric for predicting revenue and measuring customer loyalty.

Average Customer Life

Consumer Buying Behavior

Consumer buying behavior is the study of how individuals select, buy, and use products and services to satisfy their needs and desires.

Consumer Buying Behavior

Sales Sequence

A sales sequence is a series of automated touchpoints sent to prospects over time to guide them through the sales funnel.

Sales Sequence

Sales Funnel

A sales funnel is a model illustrating the customer's journey from initial awareness to the final purchase, narrowing down leads at each stage.

Sales Funnel

Account-Based Marketing

Account-Based Marketing (ABM) is a focused B2B strategy where marketing and sales collaborate to target and convert high-value accounts.

Account-Based Marketing

Account Development Representative

An Account Development Representative (ADR) identifies and qualifies new business opportunities, creating a pipeline for account executives.

Account Development Representative

Average Selling Price

Average Selling Price (ASP) is the average price at which a particular product or service is sold across different markets and channels.

Average Selling Price

System of Record

A System of Record (SoR) is the authoritative data source for a specific type of data. It acts as the single source of truth for an organization.

System of Record

Marketing Operations

Marketing Operations (MOps) is the engine of a marketing team, managing the technology, processes, and people to run campaigns effectively.

Marketing Operations

Cloud-based CRM

A cloud-based CRM is a customer relationship management tool hosted online, letting teams access and manage customer data from anywhere.

Cloud-based CRM

B2B Data Solutions

Learn about B2B data solutions, including unlocking the power of B2B data, & key components of effective B2B data solutions.

B2B Data Solutions

Application Programming Interface Security

API security is the practice of protecting application programming interfaces from attacks, preventing data breaches and unauthorized access.

Application Programming Interface Security

Email Marketing

Email marketing is a digital strategy where businesses send targeted emails to prospects and customers to build relationships and drive sales.

Email Marketing

Buyer Journey

The buyer journey maps the path a potential customer takes, from first learning about a product to the final decision to buy.

Buyer Journey

Platform as a Service

Platform as a Service (PaaS) is a cloud model where a provider delivers a platform for users to develop, run, and manage applications online.

Platform as a Service

AppExchange

AppExchange is Salesforce's cloud marketplace, offering a vast ecosystem of apps and expert services to extend Salesforce functionality.

AppExchange

Sales Presentation

A sales presentation is a formal pitch by a salesperson to a prospective customer, showcasing a product or service to secure a sale.

Sales Presentation

Value Statement

A value statement is a clear, concise declaration of the unique benefits a company provides to its customers, outlining its core purpose.

Value Statement

Social Selling

Social selling is the art of using social media to find, connect with, build relationships with, and nurture sales prospects.

Social Selling

Edge Locations

Edge locations are globally distributed data centers that cache content close to users, reducing latency and delivering web content much faster.

Edge Locations

Freemium

Freemium is a business model offering a product's basic features for free, while charging for advanced or supplemental features.

Freemium

Lead Generation Software

Lead generation software helps businesses automate finding and capturing potential customers' contact information to build sales pipelines.

Lead Generation Software

Sales Operations Analytics

Sales operations analytics is the practice of analyzing sales data to improve the efficiency and effectiveness of the entire sales process.

Sales Operations Analytics

On Target Earnings

On-Target Earnings (OTE) is a salesperson's total potential pay, combining base salary and commission for hitting their sales quota.

On Target Earnings

Order Management

Order management is the end-to-end process of tracking customer orders from placement to fulfillment, ensuring a seamless customer experience.

Order Management

Weighted Sales Pipeline

A weighted sales pipeline forecasts revenue by assigning a closing probability to each deal, giving a more accurate picture of potential income.

Weighted Sales Pipeline

Channel Partners

Channel partners are third-party firms that help market and sell a company's products or services, acting as an indirect sales force.

Channel Partners

On-premise CRM

An on-premise CRM is a system hosted on a company's own servers, offering complete control over data, security, and system maintenance.

On-premise CRM

Brand Awareness

Learn about brand awareness, including understanding its importance, building an effective strategy, key metrics to track, & examples in the real world.

Brand Awareness

Elevator Pitch

An elevator pitch is a short, memorable summary of what you do, designed to be delivered in the time it takes to ride an elevator.

Elevator Pitch

B2B Marketing KPIs

Learn about B2B marketing KPIs, including identifying key B2B marketing KPIs, setting achievable KPI targets, B2B vs B2C marketing KPIs: understanding the differences.

B2B Marketing KPIs

Lead Management

Lead management is the process of capturing, nurturing, and qualifying leads to guide them from initial interest to sales-ready.

Lead Management

Dynamic Pricing

Dynamic pricing is a strategy where businesses set flexible prices for products or services based on current market demands and other factors.

Dynamic Pricing

Outbound Sales

Outbound sales is when reps proactively contact potential customers through cold calls or emails to generate leads and build a sales pipeline.

Outbound Sales

Customer Relationship Management Hygiene

CRM hygiene involves regularly cleaning and updating your customer data to ensure your CRM system remains a powerful and reliable tool.

Customer Relationship Management Hygiene

Sales Pipeline Velocity Formula

The sales pipeline velocity formula is a key metric that measures how quickly deals move through your pipeline and turn into revenue.

Sales Pipeline Velocity Formula

Email Deliverability Rate

Your email deliverability rate is the percentage of sent emails that successfully land in a recipient's inbox, rather than bouncing or going to spam.

Email Deliverability Rate

Customer Churn Rate

Customer churn rate is the percentage of subscribers or customers who cancel their service with a company during a given time frame.

Customer Churn Rate

Generic Keywords

Generic keywords are broad search terms that lack specific details like brand or location. They attract a wide audience with less specific intent.

Generic Keywords

Custom Metadata Types

Custom Metadata Types store application configurations as metadata. This makes them easily deployable between different Salesforce environments.

Custom Metadata Types

Smile and Dial

"Smile and dial" is a high-volume sales tactic where reps make numerous cold calls from a list, often with little to no prior research.

Smile and Dial

Weighted Pipeline

A weighted pipeline forecasts sales revenue by assigning a closing probability to each deal based on its stage in the sales funnel.

Weighted Pipeline

Unit Economics

Unit economics are the direct revenues and costs of a business calculated on a per-unit basis, revealing its fundamental profitability.

Unit Economics

Trigger Marketing

Trigger marketing uses customer actions or events to automatically send highly relevant, personalized messages at the perfect moment.

Trigger Marketing

Closed Won

Closed Won is a CRM status for a sales deal that has been successfully concluded, resulting in a signed contract and a new customer.

Closed Won

Customer Retention Rate

Customer Retention Rate (CRR) is the metric that measures the percentage of customers a company has kept over a specific period of time.

Customer Retention Rate

Email Engagement

Email engagement measures how your audience interacts with your emails. It includes key actions like opens, clicks, replies, and forwards.

Email Engagement

Reverse Logistics

Reverse logistics is the process for goods moving from the customer back to the seller, covering returns, repairs, recycling, and disposal.

Reverse Logistics

Event Tracking

Event tracking is the method of collecting data on specific user actions, or 'events,' on a website or app, such as clicks or downloads.

Event Tracking

Tire-Kicker

A tire-kicker is a prospect who shows interest in a product but has no intention of buying, wasting a salesperson's time and resources.

Tire-Kicker

Dark Social

Dark social is the sharing of content through private channels like messaging apps or email. This traffic is hard to track as it lacks referral data.

Dark Social

Behavioral Analytics

Learn about behavioral analytics, including implementing behavioral analytics successfully, & key metrics in behavioral analytics.

Behavioral Analytics

Sales Territory

A sales territory is a specific group of customers or a geographic area that a salesperson or sales team is responsible for managing.

Sales Territory

Predictive Lead Scoring

Predictive lead scoring uses AI to analyze data and rank leads by their likelihood to convert, helping sales teams prioritize their efforts.

Predictive Lead Scoring

Network Monitoring

Network monitoring is the continuous process of tracking a computer network's performance and health to detect and resolve issues proactively.

Network Monitoring

Sales Forecast Accuracy

Sales forecast accuracy is a key metric that compares your predicted sales revenue against the actual sales revenue you ultimately achieve.

Sales Forecast Accuracy

Data Management Platform

A Data Management Platform (DMP) is a software that collects and organizes audience data from various sources for targeted marketing efforts.

Data Management Platform

Enrichment

Enrichment is the process of adding third-party data to your existing customer profiles to get a more complete picture of your leads.

Enrichment

Serviceable Obtainable Market

Serviceable Obtainable Market (SOM) is the portion of the market you can realistically capture with your current resources, sales, and marketing.

Serviceable Obtainable Market

Total Addressable Market (TAM)

Total Addressable Market (TAM) represents the maximum revenue a company can earn by selling its product or service in a specific market.

Total Addressable Market (TAM)

Content Curation

Content curation involves gathering, organizing, and sharing the most relevant online content on a specific topic for a particular audience.

Content Curation

Request for Quotation

A Request for Quotation (RFQ) is a document that a company sends to one or more suppliers to get a quote for specific products or services.

Request for Quotation

SQL

SQL (Structured Query Language) is the standard language for managing and querying data within relational databases.

SQL

Territory Management

Territory management is the process of segmenting customers into groups by geography or other factors to optimize sales efforts and resources.

Territory Management

Marketing Mix

The marketing mix is the set of marketing tools a company uses to sell products, defined by the 4Ps: Product, Price, Place, and Promotion.

Marketing Mix

Sales Partnerships

Sales partnerships are strategic alliances where two companies co-sell products to expand their reach, generate new leads, and increase revenue.

Sales Partnerships

Revenue Forecasting

Revenue forecasting is the process of estimating a company's future revenue, using historical data and market trends to guide strategic planning.

Revenue Forecasting

Virtual Selling

Virtual selling is the process of selling to customers remotely using technology like video calls, rather than meeting them in person.

Virtual Selling

Sales Manager

A Sales Manager leads a sales team, setting goals, analyzing performance, and developing strategies to drive revenue and meet targets.

Sales Manager

Letter of Intent

A Letter of Intent (LOI) is a document declaring the preliminary commitment of one party to do business with another, outlining the chief terms.

Letter of Intent

Email Personalization

Email personalization uses subscriber data—like their name, interests, or past behavior—to create highly relevant and targeted email campaigns.

Email Personalization

Fault Tolerance

Fault tolerance is a system's ability to continue operating without interruption when one or more of its components fail.

Fault Tolerance