Monday, May 10, 2010

Cost Per Impression

Internet marketing is not just a strategy that deploys tricks and techniques for making a website famous on the world wide web and attract huge amount of traffic to it. It has now evolved into a multi-million business with internet marketers flooding the internet with advertisements of their own expertise and services.

Since big money is now involved in internet marketing business, there are various ways in which cost or revenue is calculated, especially for the online advertisements. Cost Per Impression (CPI) and Cost Per Thousand Impression (CPM) are the two most popular ways in which cost for the advertisements is adjudged. In the case of Cost Per Impression, the advertised company is charged every time the online ad for its brand or company or banner is visited by a user. When a webpage consisting the ad loads for the first time, a log entry is made by the server.

customer is charged for the number of times the ad has loaded or an impression has been made.
No log entry is made for reloading due to internal errors or on any such grounds that have been mutually agreed upon by the customer and the advertising company. There are other pricing mechanisms such as Cost Per Action , Cost Per Click , PPC,SMO. In Cost Per Click through, the customer is charged each time the advertisement is clicked.

Cost per thousand impression or revenue per thousand impression is used to measure cost for per thousand page impressions and is another popular method to adjudge advertising cost.

Previous Post :Contextual Advertising

Contextual Advertising

This is automated advertising at its best. In contextual advertising, what exactly happens is that the ads relevant to the things a target user is checking out on a site or is searching for on a search engine are put up on the webpage he is viewing or put across his way as a pop up window. This is done automatically by the system and requires least human intervention except for the designing of the algorithm and keyword monitoring through SEO and PPC .

Google AdSense made a major breakthrough in the field of contextual advertising and till remains to be one of the best tools for contextual advertising. AdSense works by providing the websites with a java script code that they can integrate in their HTML code and on every page upload, based on the relevancy on the page content and user query, advertisements can be uploaded from the server and placed on the page for the user to notice.

After the success of Google AdSence, Yahoo! Publisher Network and Microsoft adCentre also forayed into the world of contextual advertising and are one of the top companies in this field. Contextual advertising PPC services have been very beneficial for the advertisers. Because they are more targeted in nature, therefore the success rate is on the higher side and thus revenue through pay per click advertising is on the higher side. For the companies whose ad is being promoted contextual advertising means less wastage as the ad will be seen by only those who may be interested in the products. This way they will not have to pay huge sums of money to the advertisers.