Cost Per Impression Definition and Ways to Calculate Cost Per Impression

To delve into the world of digital marketing, we need to know some of the most important metrics. One of them is the Cost Per Impression (CPI) metric or cost per impression. Cost per impression is one of the advertising cost metrics that digital marketers need to know.

Cost per impression is also known to have other terms, namely cost per thousand impressions (CPI) or cost per mile (CPM).

In short, the purpose of cost per impression is to be able to analyze whether a digital campaign is successful, can be run, and needs to be calculated first.

One way to measure the success or failure of a campaign is to consider and take into account this cost per impression.

For that, let’s get to know the term cost per impression (CPM) in the world of digital marketing, starting from the definition of cost per impression, benefits, advantages and disadvantages and how to calculate it.


1 Definition of Cost Per Impression
2 Benefits of Cost Per Impression Are
3 Advantages and Disadvantages of Cost Per Impression
4 Ways to Calculate Cost Per Impression

Understanding Cost Per Impression

As explained above, CPI or cost per impression is one way to see the cost of advertising that has been run. Not only looking at advertising costs, but you can also pay attention to whether the impressions you get are maximum or not.

The impression itself is the number of times an ad is seen by the user. CPI can clearly show the fees that must be paid by marketers each time the ad is displayed to users.

Not only that, CPI is very useful to determine the cost of Return on Investment (ROI) from marketing campaigns that have been carried out. With this cost per impression, the results can be used to compare the ROI of online advertising with traditional advertising methods such as brochures, Videotron, flyers, and others.

When online ads want to be displayed, marketers must pay a fee per thousand impressions. For example, the cost of Rs. 1 million for every 1,000 impressions. With the cost, then the ad can be directly displayed.

It should also be underlined that ads based on cost per impression do not need to be clicked by users. Just by showing the ad, it is counted as an impression.

The Benefits of Cost Per Impression are

After understanding the meaning of Cost Per Impression, we need to understand why cost per impression is important and useful for marketers and businesses running marketing strategies.

The main reason is that by calculating the CPI, marketers can find out the ROI of a campaign.

Usually, marketers can calculate how much other costs are based on this CPI calculation. Such as cost per click, cost per lead, and others.

CPI was deliberately chosen for a campaign that focuses on increasing the level of brand awareness or brand awareness. In addition, CPI is considered more suitable when compared to the calculation of cost per purchase, cost per click, and click-through rate.

Cost per impression is indeed the right choice for you if you want your ad campaign to have a high chance of being clicked. Accurate click projections can save costs when compared to the cost per click.

Another advantage of cost per impression is that it is the best option to build brand recognition at a low cost.

In the end, at some point you are advised to use CPI if you really believe that the ad is capable of having the highest click-through rate. Not only that, CPI makes ads appear in good places.

Advantages and Disadvantages of Cost Per Impression

In general, cost per impression is a good choice if your marketing campaign has a high probability of getting a large number of clicks. According to Fresh Mail, accurate click projections can save costs over using CPC.

Another advantage of CPI is that it is a great option for building branding at a low cost. Conversely, if the traffic on the site is low, then the CPI is not the right alternative.

You can use cost per impression when you are sure that the ad will have a high CTR.

Then, according to Click Cease, click-per-impression makes your ad appear on the site better. One problem is that these sites are usually prone to fraud.

Usually, these sites make CPI calculations inaccurate and load ads thousands of times without actually being seen by many people. If you advertise using video as an advertising medium, this can be very detrimental because the costs are high.

How to Calculate Cost Per Impression

If you already understand the meaning and benefits and advantages of cost per impression, it’s time to go into the discussion on how to calculate it. How to calculate how much you have to pay for an ad campaign with cost per impression is actually easy.

The method of calculating cost per impression is to calculate the total campaign expenditure with the cost per impression or the cost per impression with a very precise overall impression.

As previously noted, cost per impression is a system for calculating ads per 1000 impressions ( impressions ). Then the formula in the calculation to calculate advertising costs is as follows:

CPI = Advertising Cost / (Number of impressions / 1000)

That’s an example of how to calculate cost per impression that you can carefully.

Leave a Comment