Definition of Cost Per Impression (CPI)
The cost incurred for every thousand impressions an advertisement receives.
Explanation of Cost Per Impression (CPI)
Cost Per Impression (CPI) is a digital advertising metric that measures the cost of displaying an ad one thousand times. It is often used in display advertising, where the focus is on brand awareness rather than direct conversions. For example, if an advertiser spends $100 and the ad is shown 50,000 times, the CPI is $2. CPI helps advertisers understand the reach and cost-effectiveness of their campaigns. It is a valuable metric for comparing the performance of different ads and identifying opportunities for optimization. By tracking CPI, advertisers can ensure they are getting the most value for their advertising spend and make data-driven decisions to improve campaign performance. CPI is particularly useful for campaigns aimed at increasing visibility and brand recognition.