Cost Per View (CPV)

Have you ever wondered what if people skip your video ads and just do not watch them enough for the messaging to drive results? What about all the wasted advertisement expenditure as a result of these happenings?

If you are a marketer or digital marketing executive, good for you. The CPV (Cost Per View) metric and model can help keep such worries at bay and ensure that every dollar you spend on video ads comes back multiplied. Read along to know all about CPV, its calculation, advertising, and related best practices to maximize your ads spend ROI.  

 

First Up, What is CPV Exactly?

 

CPV is simply short for “Cost Per View.” It is a metric along the lines of the famous PPC model, where advertisers only pay for the number of times their advertised links to websites get a visit through those ads.

 

Much like that, when it comes to video ads, CPV is all about the cost of every view of your advertised video. Say ten people watch your video ad, interact with it, or at least don’t skip it 30 seconds into it. These will count as ten views, and advertisers have to pay for these views only rather than unwatched ads. 

That’s what makes CPV both a metric as well as a well-developed ad pricing model for advertisers looking to optimize their ad spend and get maximum returns. When you see it as a metric, it is simply the cost for each ad view for advertisers, while as a model, it revolves around this particular cost model. 

 

How to Calculate CPV?

Did you know that in the third quarter of 2020 alone, more than 10 million active advertisers were leveraging the Facebook app to advertise their video ads and target their consumer base? Now, the numbers have increased tenfold, with advertisers using many different platforms to target their audience and boost their sales conversion rate.

However, knowing if CPV advertising and pricing is ideal for you begins with how much it will weigh on your pocket. Many companies start with that when launching their first campaign supported by the CPV pricing model. If you want to know how you can calculate the cost of each view your video ad gets, it is simple. Here’s how:

 

Steps to Calculate Your Ads’ CPV 

  • Calculate Your Total Ad Spend 

Figure out what is the total amount of money that you have spent on your entire advertising campaign for video ads. 

  • Count Your Total Views 

Measure the total number of views that your video ad received. Factor in fully viewed ads as well as views that align with specific criteria and platform standards, as we discussed earlier, the 30-second watching duration that qualifies for a view count. 

  • Use the CPV Formula Below

Once you have both your total expenditure and view count in place, use this numerical information in a CPV formula. Next thing you know, you will know the cost of each view of your ad campaign. Here’s the simple formula you can use:

 

CPV formula (Cost Per View Calculator)

Divide the total amount spent on your advertising campaign by the total number of your ad views, as the formula highlights. For instance, consider this example calculation: 

Total ad spend: $500

Total views: 2500

CPV = $500/2500 = $0.20

In this case, your CPV will be $0.20, which means this is how much you will pay for each view your video ad gets. 

 

Some Additional Things to Consider while Calculating CPV

Here are some more things that you can consider to calculate CPV more accurately: 

Engagements

You can also include engagements with your ads as you factor in views like clicks, website visits, or interactions while calculating CPV for your video ads. This can help you gauge the effectiveness of your campaign and efforts better as well as have a more comprehensive analysis at your disposal. 

Platform Definitions

Remember, the platform you use for your video ads can impact your CPV. This is because different platforms have different definitions of what a view is, so it is important you understand and consider these particulars when calculating CPV. Here are some video view definitions across different platforms: 

  • Google’s TrueView ads: A view will be counted when 30 seconds of watch time is there or the full video if shorter.
  • Twitter: A view will be counted for  2 seconds of watch time with at least 50% of the video on screen
  • TikTok: a view will be counted with 6 seconds of watch time for videos over 30 seconds, full video for shorter ones, or an interaction, too. 

 

What is CPV Advertising?

You must have some idea by now about how CPV supports ad pricing and advertisers. This support is majorly why CPV has become more than just a metric. In the advertising world, CPV advertising has come forward as a whole new phenomenon and advertising pricing model with unparalleled cost-effectiveness. 

Wondering what CPV advertising is? It is a form of digital advertising that uses the CPV model of pricing wherein advertisers only have to pay for views and engagement from their consumers with their delivered video ads.  This pricing model allows advertisers to only incur costs when users engage with their video content. That makes it a cost-effective approach in comparison to traditional advertising pricing models that charge for clicks or impressions irrespective of viewer engagement. 

Here are the key components of CPV advertising:

Views

Understanding the definition of views across different platforms, including factors that qualify for view.  

Bidding system 

CPV works with a bidding system much like other pay-per-click (PPC) advertising models in which advertisers usually set a maximum CPV bid, which is the highest amount they are willing to pay for each view their video ad gets.

Cost calculation

This includes calculating overall costs and CPV value

Engagement focus

This focuses on the engagement of users, unlike other PPC models. 

Ad-Formats

CPV video ads can appear in different formats like:

  • In-stream ads: 

These are the kind of video ads that play before, during, or after other videos on platforms. You must have seen it on YouTube.

  • In-Display ads: 

These are clickable video ads that appear alongside search results or related videos when you type in certain words or search terms. 

 

What are the Cost Per View Model Best Practices?

Cost Per View (CPV) advertising model can be your go-to for video ads as it will allow you to pay only when your video content is viewed. To maximize the effectiveness of your CPV campaigns, here are some best practices you can follow:

  • Know Your Audience Well

Research your audience thoroughly, including exploring their demographics, interests, and online behavior, and watch time habits as it will help you tailor your video ad content greatly. 

  • Be Clear with Your Campaign Goals

Set some goals to make sure you achieve them rather than shooting in the dark. Set some specific and measurable goals, like increasing brand awareness, generating sales, or deriving traffic, to supercharge your CPV campaign. 

  • Create Compelling and Trending Video Content

Don’t give boring video ads. Make compelling and trending video content so users don’t feel the urge to skip the ad or lose interest. Additionally, make sure the first half of your ad has all the most necessary information and hooking content that can drive interaction and engagement. 

  • Optimize Your Video Ads for Mobile Viewing

As most people stream videos on mobile devices, make sure your ad content is mobile-friendly by adapting to different screen sizes and formats. 

  • Track Your Ad CPV with Other Metrics

Don’t just calculate and track CPV alone to know about the effectiveness of your CPV advertising campaign. Track CPV alongside other metrics like Cost Per Mile (CPM), Click-Through Rate (CTR), average cost, Cost Per Click (CPC), ad conversion rate, etc, so you can have more comprehensive results.  

  • Optimize Your Landing Pages

Make sure that your landing pages align with the content of your video ads so users don’t feel out of place and have a seamless experience. Include a clear and compelling CTA (Call to Action) to direct these users to the action you want them to take, like making a purchase or signing up for a newsletter.

 

Conclusion

CPV or Cost Per View, is inarguably the best video ad model, especially in today’s world where video streaming platforms like YouTube, Netflix, and the like have created quite a buzz. It cuts through on both the cost-efficiency ground as well as campaign effectiveness ground. 

No wonder it stands out as a powerful tool for marketers who want to leverage the engaging and captivating nature of video content to generate sales without it weighing heavy on their pockets. As video content becomes more prevalent in online marketing, adopting the CPV model can be the best bet for brands who want to reach their audience and actualize their marketing objectives in real-time. 

 

FAQs

1. What is CPV full form?

The full form of CPV is “Cost per View.” Generally, it refers to a pricing model employed in the digital advertising realm in which advertisers pay for each view their video ad gets. 

2. What is the cost of Google ads per view?

According to Google Ads help, the cost of Google ads per view for an in-stream ad is $0.25 US dollars max when a user watches 30 seconds of your ad video or the entire duration if your ad is shorter than 30 seconds. The average CPV rate on Google’s TrueView ads on YouTube is reportedly between $0.10 and $0.30.

3. What is the cost per view on YouTube?

The average Cost Per View on YouTube ranges from $0.10 to $0.30, whereas a good CPV usually ranges from $0.10 to $0.50 across most industries. 

4. Why choose CPV as a metric for advertising?

You should choose CPV as a metric for advertising because it is a beneficial metric for these reasons:

  • You, as an advertiser or marketer, will  only need to pay for actual engagement with your video ads
  • You will have a clear metric at your disposal to measure the performance of your video ads and the overall impact of your video advertisement campaigns
  • As an advertiser, you can do budgeting and make necessary adjustments based on actual viewer engagement and views. 
  • CPV levels the playing field for performance advertisers so you can compete with brand advertisers easily. 
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