Revenue per Impression (RPI)

Revenue per impression is useful for assessing the overall efficiency of paid media spend since it includes both clickthrough rate and conversion rate. This measure is not used much compared to Return on Advertising spend (ROAS), but is a useful addition when testing ad effectiveness.

Revenue per impression is recommended by Google Ads specialist Brad Geddes in this article giving this example:

Brad explains:

“If we just want the most conversions possible; then ad 3 is our clear winner. It receives 15 conversions for every 10,000 impressions. If our goal is the most conversions – this is our winner. However, it has a lower ROAS and RPI than some other ads.

If our goal is ROAS (Return on Advertising spend); then ad 1 is our winner. It’s also our highest converting ad. However, it has a low CTR and thus is going to have a poorer quality score than some of the other ads. It has a lower RPI and makes less money than some other ads. This is why ROAS is a good metric for bid management, but rarely for ad testing.

If we want the most revenue possible, then ad 4 is our clear winner. It’s the highest revenue and highest RPI (because the impressions are equal among all the ads)”.

About

Welcome to my personal site where I blog about the latest developments in digital business to help students, professionals or lecturers using my books in their studies or careers.

Visit my main Smart Insights Digital Marketing Strategy site to download planning templates, strategy guides and daily updates on the latest developments.

I also write about assistive technology to help others teaching the visually impaired as part of my volunteering work for charity AbilityNet.

About Smart Insights

Dr Dave Chaffey is co-founder and Content Director of digital marketing advice site Smart Insights. We’re a publisher and learning platform that helps our 150,000 active members in over 100 countries plan, manage and optimize their digital marketing activities by applying the actionable advice in our planning templates, guides and interactive e-learning tools.

Free members can download our free templates and benchmark their digital capabilities.