Impression

AAA

DEFINITION of 'Impression'

A metric used to quantify the display of an advertisement on a web page. Impressions are used in banner advertising, which often pays on a per impression basis. Frequently, these are measured by Cost Per Mille (CPM), where mille refers to 1,000 impressions.

INVESTOPEDIA EXPLAINS 'Impression'

For example, a banner ad might have a CPM (cost per thousand) of $5, meaning that the website owner receives $5 every time an ad on his website is displayed 1,000 times.

The owner of a website may be paid for each ad impression. Other advertising arrangements may only pay the website owner when a visitor clicks on the ad, or clicks on the ad and makes a purchase. Typically, advertisers pay less for an ad campaign based solely on impressions and more for campaigns based on click-throughs and conversions. The reason for this difference in pay rates is that an ad that causes its viewer to take action resulting in a sale, is more valuable to the advertiser than one that does not.

RELATED TERMS
  1. Tailored Advertising

    Marketing and advertising campaigns that place emphasis on the ...
  2. Advertising Budget

    An estimation of a company's promotional expenditures over a ...
  3. Marketing Campaign

    Specific activities designed to promote a product, service or ...
  4. Media Buy

    The purchase of advertising from a media company such as a television ...
  5. Cost Per Click - CPC

    A website that uses CPCs would bill by the number of times a ...
  6. Click-Through Rate (CTR)

    The percentage of individuals viewing a web page who click on ...
RELATED FAQS
  1. How do people make money on the videos they upload to YouTube?

    The most common ways that people make money on videos uploaded to YouTube is through advertising and paid product placement. The ... Read Full Answer >>
Related Articles
  1. Home & Auto

    Don't Be Misled By Investment Advertising

    Investment companies and brokers want to sell. Unfortunately, this can result in promotional material that is not entirely frank, or far worse, truly misleading.
  2. Investing Basics

    Stock Market Simulators: Play Your Way To Profits

    Online stock simulators make learning about stocks as fun and easy as playing a game.
  3. Professionals

    Advertising, Crocodiles And Moats

    Memorable advertising is a brick in the fortress that keeps competitors at bay.
  4. Professionals

    How To Target Ideal Customers

    Expand your definition of a lucrative client and uncover a new realm of possibilities.
  5. Professionals

    The Lucrative World Of Third-Party Marketing

    Hedge funds don't sell themselves. Marketing experts reel in the big fish.
  6. Forex Education

    10 Tips For Choosing An Online Broker

    Investing online is cheaper, safer and easier than ever before. Find out how to choose the broker that will help you get the most for your money.
  7. Investing

    Wizards Of Odd: A Trip To Tech Land

    I spent a couple of days in Silicon Valley, and here are some key lessons I learned after meeting with a number of tech CEOs and venture capitalist.
  8. Personal Finance

    How Youtube Ad Revenue Works

    Many people make money off of their YouTube videos through ad revenue, but just exactly how does Youtube Ad Revenue work? Quite simply, it turns out.
  9. Fundamental Analysis

    What is a Null Hypothesis?

    In statistics, a null hypothesis is assumed true until proven otherwise.
  10. Investing

    What are Preference Shares?

    Preference shares, also referred to as preferred shares, are equity shares that give the shareholders certain rights ahead of common shareholders. For instance, when the corporation declares ...

You May Also Like

Hot Definitions
  1. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  2. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  3. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  4. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  5. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  6. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
Trading Center