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.
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