Thursday, 16 January 2014

CPI (Cost Per Impression) Advertising

CPI (Cost Per Impression) Advertising

CPI is an advertising term that stands for Cost Per Impressions. Website owners who have CPI advertising programs sell banner advertising at a cost per impressions rate. An example would be a Website that charges $100.00 for 50,000 banner impressions. The vendor's banner is displayed on the Website until it has been shown 50,000 times (i.e. 50,000 page views by users). 

CPI programs often rotate banners. If you sign-up for a CPI program on a popular Website then your banner will likely rotate with other banners. Thus, your banner is not always shown. Each time a page loads a different banner is displayed. This is actually a good thing as it stretches out your advertising plan. A very popular Website could generate 50,000 banner impressions in just a few days if you were the only advertiser. 

Prices for CPI advertising vary widely. It all depends on the popularity of the Website. The more traffic they have the more their CPI programs are worth. CPI programs usually come with statistics. You will have an administrative section that you can login to where you can see your impressions and click through rate. Other companies email statistics daily or weekly. 

CPI advertising does have a few drawbacks that have made CPC Advertising more desirable in recent years:

  • Web users do not respond to banner ads as well as they do text ads
  • The way a Website is designed can have a profound effect on banner clicks
  • Websites offering CPI advertising have the freedom to put your banner anywhere they like
  • CPI can get used up quickly if you are one of just a few advertisers on a Website
  • Some Websites produce more clicks than others while both may have the same number of traffic
  • Your banner will be charged impressions for return visitors who may view many pages per day
Some have wonderful success with CPI while others not so much. It varies per industry and per Website. Companies pondering banner-advertising campaigns need to stick to those Websites that have a proven track record of it working. Of course, those Websites will likely want hundreds of dollars for banner campaigns in most industries. 

Take these things in to consideration when seeking CPI advertising:

  • Make sure that you seek out Websites that have thousands of visitors per day that are closely related to your industry. If they are niche markets within then even better.
  • Make sure they have solid content
  • You may want to take an in-depth look at the demographic make-up of their statistics. If you sell clothing that caters to women in the age group of 18-25 then it may not do you a lot of good to advertise on a Website with low numbers of women in this age group.
  • Websites that show that they have a loyal following with many return users are the best ones to advertise on. Loyal users are attracted to what is new on their favorite Website. That includes advertisements.
  • Talk to the Website owner or advertising department. Do you get the impression that they are just going to slap your banner on their Website and say, "See ya"? Or are they going to work hard to get you traffic? Many companies throw in perks such as mentioning you on the home page or posting an announcement about you on their message board.
  • Make sure you find out where your banner is going to appear, if it will rotate, and how the rotation process works. Verify that you are going to get the same positioning as other advertisers.
  • CPI advertising is only going to work for Websites that have thousands of page views per day. It is easy to look at a number like 100,000 and think that will keep your ad on their Website for a few months. It may only keep it there for a few weeks. Find out how long it usually takes for that campaign to expire.
  • As stated, Websites with loyal followings are best. At the same time, you will eventually reach a point when the majority of that loyal following has seen your banner. It is not uncommon for clicks to start out strong and then taper off after a couple weeks. Be wary of running banner-advertising campaigns for long periods of time. It is often best to hit these Website in short spurts a couple of times per year as opposed to running multi-month campaigns.
  • Contradicting what we said above, some Website owners want to make strong alliances with their advertisers and make the experience personalized. If you find a Website that goes the extra mile for you then a long-term relationship may work out well over the long haul.
It is trial and error at a price. Take the above things in to consideration before signing up for a banner campaign in haste
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Source : tconsult.com

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