Marketing Essentials 2012

Chapter 25: Price Planning

eMarketing Feature

Cost Per Impression
Cost Per Impression (CPI) or Cost Per thousand impressions (CPM) is used to measure Web traffic in order to determine the cost of an e-marketing campaign. A flat rate is given to the advertiser for Web banners, text links, and e-mail advertising when CPI or CPM is used as the basis for pricing. In this method, when an ad is seen on a viewer' screen, you count that appearance as one impression. When using CPM an advertiser is quoted a rate of $10 it means that the cost per impression is actually $0.010 ($10 divided by 1,000 = $0.010).

Innovate and Create
Have students research and report on other terms used in conjunction with pricing for online advertising. Tell them to prepare a short, written summary of their findings and to note which method they would recommend for a big multinational company and for a small, local restaurant.

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