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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Use Case

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Lead Scoring Models

Lead scoring models rank prospects by assigning points for their behaviors and demographics, helping sales teams prioritize their outreach.

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Challenger Sales Model

The Challenger Sales Model is a sales approach where reps challenge a customer's thinking by teaching, tailoring, and taking control of the sale.

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Service Level Agreement

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Service Level Agreement

Sales Cycle

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Sales Cycle

Lead Generation Tactics

Lead generation tactics are the strategies and methods used to attract potential customers and convert them into leads for your sales team.

Lead Generation Tactics

Outbound Sales

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

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Sales Dialer

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Business Intelligence

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Sales Performance Management (SPM)

Sales Performance Management (SPM) is a suite of tools and processes that help businesses monitor, analyze, and boost sales team performance.

Sales Performance Management (SPM)

Statement of Work

A Statement of Work (SoW) is a document that outlines a project's scope, deliverables, and timeline. It acts as a contract between parties.

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Forward Revenue

Forward revenue is the total value of all active, committed contracts that are expected to be recognized as revenue in the future.

Forward Revenue

Load Balancing

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Supply Chain Management

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Supply Chain Management

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

Application Performance Management

Application Performance Management (APM) monitors and manages an application's performance, availability, and the experience of its end-users.

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Marketing Automation Platform

A marketing automation platform is software that automates marketing actions. It helps manage tasks like email campaigns and lead nurturing.

Marketing Automation Platform

Sales Prospecting Techniques

Sales prospecting techniques are methods used by sales teams to identify, contact, and qualify potential customers, also known as prospects.

Sales Prospecting Techniques

Account-Based Advertising

Account-based advertising is a hyper-focused B2B strategy that targets key accounts with personalized ads across multiple channels.

Account-Based Advertising

Guided Selling

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Product Recommendations

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Edge Locations

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Clustering

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Sales Sequence

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Business Continuity

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After-Sales Service

After-sales service is the support provided to customers after they've purchased a product. It includes things like warranties, training, or repairs.

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User Interaction

User interaction is any action a user takes within a digital interface, like clicking a button, scrolling a page, or filling out a form.

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Email Deliverability

Email deliverability is the ability for your emails to successfully land in your recipients' inboxes instead of their spam folders.

Email Deliverability

B2B Sales

Learn about B2B sales, including key strategies for B2B success, types of B2B sales models, & B2B vs. B2C sales: understanding the differences.

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SEM

Search Engine Marketing (SEM) is a digital marketing strategy that uses paid tactics to increase a website's visibility in search engine results.

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Git

Git is a distributed version control system that tracks changes in code, allowing developers to collaborate and manage project history effectively.

Git

Load Testing

Load testing is a type of performance testing that determines how a system behaves under both normal and anticipated peak load conditions.

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Docker

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Funnel Optimization

Funnel optimization is the process of improving each stage of the customer journey to maximize conversions and drive revenue growth.

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Field Sales Rep

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Customer Segmentation

Customer segmentation is dividing customers into groups based on shared traits. This allows for more targeted and effective marketing efforts.

Customer Segmentation

Platform as a Service

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Sales Qualified Lead

A Sales Qualified Lead (SQL) is a prospect vetted by marketing and sales, deemed ready for a direct sales pitch after showing intent to buy.

Sales Qualified Lead

Regression Analysis

Regression analysis is a statistical method for estimating the relationships between a dependent variable and one or more independent variables.

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Account Match Rate

Account match rate is the percentage of target accounts successfully identified and matched against a specific database or data provider.

Account Match Rate

User Experience

User Experience (UX) refers to a person's overall feelings and perceptions while interacting with a product, system, or service.

User Experience

Revenue Operations KPIs

Revenue Operations KPIs are quantifiable metrics that track the performance, efficiency, and health of a company's revenue-generating engine.

Revenue Operations KPIs

Accounts Payable

Accounts Payable (AP) is the money a company owes its suppliers for goods or services bought on credit. It's listed as a current liability.

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Marketing Qualified Lead (MQL)

A Marketing Qualified Lead (MQL) is a prospect who has shown interest based on marketing efforts but isn't yet ready for a sales conversation.

Marketing Qualified Lead (MQL)

SPIN Selling

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Hard Sell

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Messaging Strategy

A messaging strategy defines what your brand says, how it says it, and where it says it to connect effectively with your target audience.

Messaging Strategy

GPCTBA/C&I

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

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Buyer’s Remorse

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Demand Forecasting

Demand forecasting is the process of predicting future customer demand for a product or service based on historical data and market trends.

Demand Forecasting

Discount Strategies

Discount strategies are pricing tactics used to attract customers and boost sales by temporarily reducing the price of products or services.

Discount Strategies

Day Sales Outstanding

Day Sales Outstanding (DSO) is a financial ratio that shows the average number of days it takes for a company to receive payment for a sale.

Day Sales Outstanding

Video Prospecting

Video prospecting is the sales technique of sending personalized videos to potential customers to grab their attention and secure more meetings.

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Predictive Lead Generation

Predictive lead generation uses data and AI to find prospects most likely to buy, helping teams focus their efforts on high-value leads.

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Customer Loyalty

Customer loyalty is a customer’s devotion to a brand, shown by their repeat purchases and engagement, driven by positive experiences and trust.

Customer Loyalty

Lead Response Time

Lead response time is the duration between a potential customer showing interest and your team's first point of contact with them.

Lead Response Time

Escalations

Escalations are the process of moving a customer issue or sales opportunity to a more senior or specialized team member for resolution.

Escalations

Scalability

Scalability is a company's ability to handle increased workloads or market demands without a drop in performance or a spike in costs.

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Stress Testing

Stress testing is a type of software testing that determines a system's robustness by pushing it beyond its normal operational capacity.

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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.

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Private Labeling

Private labeling is when a company rebrands a product made by a third-party manufacturer and sells it as their own.

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Sales Prospecting Software

Sales prospecting software automates the process of finding, contacting, and tracking potential customers to help sales teams build their pipeline.

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Product Qualified Lead

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Product Qualified Lead

Google Analytics

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Economic Order Quantity

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Economic Order Quantity

Purchase Buying Stage

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Purchase Buying Stage

CI/CD

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CI/CD

Buying Cycle

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MEDDICC

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MEDDICC

Lookalike Audiences

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Lookalike Audiences

Lead Enrichment Software

Lead enrichment software adds crucial data to your leads, like contact info and firmographics, to help you better understand and engage them.

Lead Enrichment Software

Mobile Compatibility

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Mobile Compatibility

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

Hot Leads

Hot leads are prospective customers who have shown significant interest and are ready to buy, making them a top priority for sales teams.

Hot Leads

Reverse Logistics

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Reverse Logistics

Sales Manager

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

Sales Manager

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

X-Sell

X-Sell, or cross-selling, is a sales strategy of selling additional, related products or services to an existing customer base.

X-Sell

AI-Powered Marketing

AI marketing uses artificial intelligence to analyze data, automate decisions, and deliver personalized customer experiences at scale.

AI-Powered Marketing

Call Analytics

Call analytics is the practice of analyzing phone call data to extract insights, track key metrics, and improve overall business performance.

Call Analytics

Segmentation Analysis

Segmentation analysis is the process of dividing a broad market into smaller, distinct groups of consumers with similar needs or characteristics.

Segmentation Analysis

Marketing Budget Breakdown

A marketing budget breakdown is a detailed plan that allocates your total marketing funds across various channels, campaigns, and activities.

Marketing Budget Breakdown

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

Drip Campaign

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Drip Campaign

Compounded Annual Growth Rate

Compounded Annual Growth Rate (CAGR) measures the mean annual growth of an investment over a specified period of time longer than one year.

Compounded Annual Growth Rate

Firewall

A firewall is a digital barrier that protects a network by monitoring and controlling traffic, blocking unauthorized access and malicious content.

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Champion/Challenger Test

A Champion/Challenger test pits a new 'challenger' against the current best-performing 'champion' to see which one performs better.

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Market Intelligence

Market intelligence is the process of collecting and analyzing data about your target market, competitors, and industry to guide business strategy.

Market Intelligence

Email Verification

Email verification is the process of confirming that an email address is valid and deliverable, which helps improve campaign performance.

Email Verification

Multi-touch Attribution

Multi-touch attribution is a marketing analytics method that credits multiple touchpoints on the customer journey for a conversion.

Multi-touch Attribution

Personalization in Sales

Personalization in sales means tailoring outreach to a prospect's specific needs, interests, and context to make communication more relevant.

Personalization in Sales

D2C

Direct-to-consumer (D2C) is a sales strategy where a brand sells its products directly to end customers, bypassing any third-party retailers.

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Triggers

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Warm Calling

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Warm Calling

Ransomware

Ransomware is a type of malicious software that encrypts a victim's files, holding them hostage until a ransom is paid for the decryption key.

Ransomware

Custom Metadata Types

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

Custom Metadata Types

Drupal

Drupal is a free, open-source content management system (CMS) for building websites and applications. It's known for its robust flexibility.

Drupal

SFDC

SFDC stands for Salesforce Dot Com, a popular cloud-based CRM platform that helps companies manage their customer interactions and data.

SFDC

Data Warehousing

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Data Warehousing

Target Account List

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Target Account List