Impression

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.

BREAKING DOWN '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. Cost Per Thousand - CPM

    The price of 1,000 advertisement impressions on one webpage. ...
  2. Banner Advertising

    A rectangular graphic display that stretches across the top or ...
  3. Cost Per Click - CPC

    A website that uses CPCs would bill by the number of times a ...
  4. Media Buy

    The purchase of advertising from a media company such as a television ...
  5. Advertising Appropriation

    The portion of the total marketing budget that is allocated to ...
  6. Monetize

    To monetize is to convert an asset into or establish something ...
Related Articles
  1. Investing

    What Is Cost Per Thousand?

    Cost Per Thousand, or CPM, is a price Internet publishers will charge for every 1,000 advertisement impressions recorded on a webpage.
  2. Entrepreneurship & Small Business

    The (High) Cost of Advertising in Times Square

    Advertising on a Times Square billboard costs more per impression than similar forms of advertising, but that doesn't mean it's not worth it.
  3. Professionals

    Trends And Growth In The Digital Advertising Industry

    The rapidly expanding digital advertising industry is leading a shift towards content and demanding forced innovation.
  4. Professionals

    How The Internet Web Ad Industry Works

    Over the past 10 years, advertising strategies have evolved as a result of technological development as the internet has provided new channels for advertisers to reach a larger audience.
  5. Professionals

    Bye, Mad Men: How the Net Is Changing Advertising (FB, TWTR)

    The Internet and digital media are changing the way companies advertise and market themselves. More targeted, varied and faster advertising is possible.
  6. Entrepreneurship & Small Business

    How is Programmatic Advertising Changing Media?

    Understand what programmatic advertising is as well as the technology that drives it. Learn about the top four ways programmatic advertising is changing media.
  7. Markets

    Ad Blockers Could Spell A Boom For Publishers  

    In a free content world, largely subsidized by advertising, ad blockers can eat into publishing revenues. But, publishers can still stand to gain.
  8. Professionals

    Advertising From TV To Internet: An Industry History

    Changes in television consumption habits have forced advertising to target audiences through new means, namely Internet advertising.
  9. Insights

    How the TV Advertising Industry Works

    Things have definitely changed since the early days of “Mad Men,” when one TV ad could change the world—or at least change a company’s sales numbers.
  10. Professionals

    Digital Advertising Is The Future, But Why? (ZNGA, GOOG)

    Digital advertising has outgrown the internet.
RELATED FAQS
  1. What are the key differences between marketing and advertising?

    Understanding the role advertising plays in the marketing mix will help business owners define their promotional strategies ... Read Answer >>
  2. Why does an investor need to understand the click-through rate in the Internet sector?

    Understand what a click-through rate measures, and learn why an investor should be interested in the click-through rate of ... Read Answer >>
  3. How important is advertising revenue in the Internet sector?

    Learn about the importance of advertising revenue in the Internet industry. Find out how much Internet firms rely on advertising ... Read Answer >>
  4. How do people make money on the videos they upload to YouTube?

    Learn about the primary ways that people can generate income based on the videos they upload to YouTube, including advertising ... Read Answer >>
  5. What metrics are used to gauge the effectiveness of a marketing strategy?

    Understand why companies need sound marketing strategies and how they are able to accurately measure effectiveness of marketing ... Read Answer >>
  6. What is the "bait & switch" technique?

    The bait and switch is a advertising technique which can be considered illegal, but in most cases is merely looked upon as ... Read Answer >>
Hot Definitions
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  4. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  5. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  6. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
Trading Center