We explain the difference between CPM and CPI with. CPM and CPI are the two ways the advertising industry works. CPM stands for cost per mile; CPI stands for cost per installation. There are other ways to charge advertisers, such as CPA and CPC campaigns. In this article we will see what is the difference between CPM and CPI.
The main difference between CPM and CPI is that the advertiser is charged when multiple Impressions are delivered for their ad in the case of CPM. But in the case of CPI, the advertiser pays based on various installs of their ad. Both are used in the context of how an advertiser will pay to run their ad campaign. CPI and CPM
Both methods of campaign execution send objectives to be met for the advertiser. When an advertiser wants to show their business or product in front of the audience, the CPM method is used. When the advertiser wants to install a software or a mobile application, the CPI method is used.
Comparison table between CPM and CPI (in tabular form)
CPM CPI comparison parameter
| Sense | CPM campaigns are run to show an ad to a user at a cost of X amount per 1000 impressions. | CPI campaigns are run to obtain installations for the software. |
| Level | These campaigns are entry-level and generally supported by advertising brokers by default. | These are advanced level campaigns and are supported by limited ad brokers. |
| cost | CPM campaigns are less expensive. | CPI campaigns are more expensive. CPI and CPM |
| objective | They are used to create brand awareness or product awareness. | They are used specifically to obtain installations for the desktop, tablet or mobile application. |
| Types | There are no types of campaigns based on CPM. | They can be incentivized or not incentive-based. Incentive-based campaigns will reward the user with some benefit, such as a recharge coupon code, etc. |
What is CPM?
Cost per mile or CPM is a way that the advertiser will run their campaign and show their ad in front of a maximum number of people. CPM-based campaigns that have been around since the inception of the online advertising industry.
The process of setting up a CPM-based campaign includes creating a copy of AD and then deciding on a budget to be spent when displaying to 1000 people.
Therefore, CPM is a metric that can be used to decide which ad campaign performs better than the other. The campaign that costs the least money per 1000 impressions will have a lower CPM. CPI and CPM
Companies would let their ad campaigns run for a week and then choose the best performing ad campaign.
The main point to remember about CPM is that it is the amount of money that will be spent to show the additional 1000 audience.
Most of the time, the average cost of running a CPM campaign will be a few cents per thousand ad impressions.
What is the CPI?
CPI stands for cost per installation. Whenever an advertiser has the goal of installing software or an application on the customer’s device, they will use CPI-based campaigns.
Unlike CPM-based campaigns here, the cost is per install and not per 1000 installs. CPI and CPM
CPI campaigns are used for desktop applications such as Windows or Mac software, as well as for mobile applications.
Since the rise of the smartphone industry, Google has also enabled the best special campaigns for advertisers.
Advertisers who want more installs for their mobile app or mobile game will choose Universal App Campaigns when creating a campaign for their mobile app. Even Facebook, Snapchat, and Pinterest also have the option to create and install based campaigns. The average cost of running a CPI campaign would be anywhere from 20 cents to $ 5.
Main differences between CPM and CPI
- CPM-based campaigns are used when the advertiser wants to show their ad to a maximum number of people. CPI-based campaigns are used when the advertiser wants more installs for their software.
- Advertisers typically start their first campaign with the CPM-based campaign, and after gaining more data about their audience, they will launch a CPI-based campaign.
- The most common goal for running a CPM-based campaign is to build brand awareness. The most common goal for running a CPI-based campaign is for more people to use the software product.
- Campaigns based on CPM are usually cheaper than campaigns based on CPI. This is because, in the case of CPI campaigns, the user has to install something on their device.
- CPM-based campaigns were the first campaigns that became available to advertisers when the online advertising industry started. Over time, CPI-based campaigns also became available to advertisers.
Final Thought
Both CPM-based and CPI-based campaigns have pros and cons. It is not the case that one is more superior than the other.
The objective of the campaign in the case of CPM is very different from the objective in the case of the CPI campaign. The CPM campaign runs for brand awareness or product awareness, while the CPI campaign runs for more users of the software.
Both CPM and CPI campaigns have their price points. The usual trend for high-cost campaigns in Tier 1 countries applies to both types of campaigns. CPI and CPM
While CPI campaigns will be available from various advertising brokers such as Google and Facebook, CPM-based campaigns are available from almost all advertising brokers.
For beginners, it is always recommended to run a CPM-based campaign first to find out more about your target audience. Once the advertiser knows their target audience, they can run a CPI campaign.
