Understanding Contoso's Pricing Model for Display Ad Impressions

What pricing model is Contoso choosing for their display ad impressions?

Contoso is choosing the B) Cost per Mille (CPM) pricing model.

In the scenario provided, Contoso has committed to buying 20 million display ad impressions to be delivered between specific dates at a specific price. This indicates that Contoso is opting for the Cost per Mille (CPM) pricing model.

The CPM model charges the advertiser for every 1,000 ad impressions their ad receives, regardless of user actions. This means that Contoso will be paying based on the number of impressions their ad generates, rather than on clicks, acquisitions, or views.

Choosing the CPM pricing model allows Contoso to focus on reaching a broad audience and maximizing exposure through a large number of impressions.

It is important to understand the different pricing models available in digital advertising to make informed decisions about budget allocation and campaign objectives. By selecting the CPM model, Contoso is prioritizing visibility and brand awareness through a high volume of ad impressions.