PPI – Pay Per Impression
What does PPI mean and where can we include it?
The acronym PPI (pay-per-impression) along with PPV (pay-per-view) are business models for online advertising. These are actually the paid ways an advertiser uses to reach their potential customer.
Now let’s go back to PPI and explain it in more detail.
As I mentioned, it belongs to the business models on the Internet, the so-called to an online ad in which the advertiser pays for the number of times his ad is displayed on a website, unlike a PPC ad, where he pays for a customer’s click.
This type of advertising is used based on thousands of impressions for a predetermined amount of money.
How do we calculate PPI?
Impressions are calculated for all displayed advertising banners on 1 page as follows:
The price of an impression in the PPI model is expressed by the value of CPT (cost per thousand), as we mentioned above, i.e. the price per thousand impressions.
CPT is a unit in which the price for advertising on the Internet is always stated and displayed on the website. (we can also name CPM = cost per mile, because it means exactly the same thing)
CPT = Total cost / Number of impressions * 1000
How does it really work on the web?
So when it comes to websites, with PPI, your potential customers can be redirected to your site with just one click. The best way to advertise on a designated website without using the service is to agree on a good rate directly with its owner.
PPI is most often used when your purpose is to raise awareness of your site, for example, and you don’t care about clicks or conversions that interest us in PPC advertising.
Benefits of PPI?
One common benefit of all online advertising is that visitors are redirected to your site with just one click.
If you use a PPI pricing structure and your ads have a high clickthrough rate (CTR), you’ll be able to save a lot of money and time when compared to CPC (cost-per-click).
For example: If CPC = $5, and your average ad cost per 3 clicks per 1000 impressions is $15, then if your PPI rate is less than $15 per thousand impressions, PPI can save your money.