PPI, otherwise known as Pay Per Impression, is another digital advertising stratagey that is very popular. But what is PPI? And how can you use it effectively to get your product/service out there?
What Is PPI?
Pay-per-impression is another form of digital advertising used by many succesful companies. Quite simply, it defines how the company will pay for their advertising being shown. With PPI, you tend to pay every time your ad makes an impression on/is shown to a potential customer. Often, this is done for every 1 thousand people. This is why PPI is sometimes referred to as CPM, or Cost-Per-Mille (Mille being latin for one thousand). The cost can often be calculated by the formula Total Impressions divided by 1000 and then multiplied by the cost.
Advantages of PPI
PPI has many advantages, such as:
- It is used by many ad networks, so it is not hard to find a good quality ad network to serve your ad!Examples of good quality ad networks are Google Ads, Adsterra, and Propeller Ads.
- It is easy to keep track of your analytics, as most factors (like average web traffic) can be measured!
- It is consistent – Provided your ads get served on quality websites with decent amount of traffic, you can be sure that your exposure is measurable and predictable, allowing you to calculate profits/effectiveness to a higher degree of accuracy!
- It is a great way to cheaply test your perfect demographic – This can be done by measuring Click-Through Rates on multiple targeted websites!
- They are a great way to increase brand awareness! Even if the potential customer does not click on your ad, they now know your company exists, and may come to you in the future by remembering your ad!
Disadvantages of PPI
As always, there are a couple of downsides:
- If your ad is not performing well, you will have a very low engagement rate, and may be wasting your money (although it is cheap). Always get a professional to help you perfect your ad!
- It can be difficult to know just how many people have actually seen the ad – served does not always mean seen!
- The average CPM in Q2, 2020 was $4.33!
- For every $1.60 spent on Google AdWords, a business is likely to make $3!
- Impressions are improving by roughly 20% each year!
- Click-Through Rates are decreasing yearly 🙁 But not by much!
- Average CTR n social media is 1.3%!
Hopefully this information helps you come to the right conclusion about pay-per-impression! We love it, and we hope you learn to as well! And remember – One SC Media are always here to help if you need help with your marketing solutions!
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