Pay per impression (PPM) is a type of online advertising model in which an advertiser pays a set amount of money for each time their ad is displayed or “impressed” on a web page. This payment method stands in stark contrast to other online advertising models, such as cost-per-click (CPC) and cost-per-action (CPA), where advertisers are charged according to the number of clicks or actions their ad receives.
Compared to other types of digital advertising, PPM offers better targeting capabilities, since advertisers only pay when their ad is displayed. This makes it easier for them to reach the right audience with their ads, as well as track which ads are working best. Additionally, PPM also allows for more flexibility than CPC and CPA models; instead of paying for every click or action, advertisers can choose how much they want to spend per impression.
Another similar term associated with PPM is cost-per-thousand impressions (CPM). In this model, rather than charging per individual impression, advertisers are charged a set rate for every thousand impressions served. While this model is more commonly used by publishers than advertisers, it does offer some advantages over PPM; namely that it allows publishers to predict costs in advance and have greater control over budgeting.
Overall, while both PPM and CPM have their advantages and disadvantages depending on the context of use, they are both effective ways to monetize digital content – whether through advertisements or other forms of media – with relative ease and accuracy. Additionally, both models enable marketers to effectively target relevant audiences with relevant messages at scale while minimizing risk and maximizing ROI potential.
