Understanding the Difference Between Pay per Impression and Pay Per Click Advertising

Digital advertising allows you to market your online goods and services to the customers. The digital advertising platform allows you to funnel large number of online customers towards your site. Effective digital marketing strategies can greatly boost revenues of your online business. The trick is to use the right tools and target the right places in the digital super highway.

Many people new to online marketing are confused about the terms Pay per Impression (PPI) and Pay Per Click Advertising (PPC). Both are costing methods for displaying ads online. However, the way they charge for displaying the ads is different. Here we will provide you complete information about the two types of advertising medium and which one is better for online businesses.

PPI vs. PPC: The Basic Concept

The best way to learn about the difference between the two digital advertising costing methods is to know about the underlying concept behind them.

PPI or Pay Per Impression is a digital ad costing method that charges each time the ad displays on the users’ screen. This is similar to traditional video ads that are charged for the number of times they appear on the screen. Also, similar to traditional video ads that are charged based on popularity of the program where they are aired, the cost for PPI ad depends on popularity of the keywords for which they are optimized. The more people type the keyword when searching for the ad, the greater is the cost per impression of the ad.

PPC or pay per click advertising is also a digital ad costing method where instead of being charged for number times the ad appears on the screen you are charged for the number of times the ad is clicked by the user. This is an effective way of costing ads in the advertising media. The more the people click on the ads, greater is the overall cost of the pay per click advertising. The cost per click in PPC also depends on the demand of the keywords. The more popular the keywords, greater will be the cost per click of the keyword.

Making the Right Decision: Which is Better Digital Ad Costing Method?

A number of factors determine which digital ad costing method is better of the two. Some firms benefit more from PPI digital ads, while others benefit the most from PPC ads. The deciding factor that determines which type of digital ad is preferable depends on the budget and objective for digital marketing of products or services.

The cost per impression for PPI is generally less as compared to cost per click in PPC advertising. However, conversion rate of PPI advertising is also less in comparison to PPC advertising. Users that click on PPC ads are those that are generally interested in the companies advertised products.

The same is not the case with PPI advertising. The latter is preferable advertising media when the company sales food items and other products that are generally preferred by consumers. For specialty goods, PPC ads are more preferable as compared to PPI digital marketing ads.

Visit http://adlytica.com/ to find out more information about which digital marketing method is suitable for your online business.