CPV, or Cost Per View, is a metric used in digital advertising to measure the cost an advertiser pays each time their video ad is viewed by a user. In other words, it’s the amount an advertiser is willing to pay for each view of their video ad.
How does CPV work?
CPV is most commonly used in video advertising, where an advertiser pays each time their video ad is viewed. When a user views a video ad, the advertiser is charged a certain amount, which is determined by the ad network or platform on which the ad is displayed. The amount charged can vary based on factors such as the ad format, targeting options, and the audience.
How to calculate the CPV
To calculate the CPV for an advertising campaign, the advertiser must know the total cost of the campaign and the total number of views or clicks generated by the campaign. The formula for CPV is:
CPV = Total campaign cost / Total number of views or clicks
For example, if an advertiser spends $1,000 on a video advertising campaign that generates 10,000 views, the CPV would be:
CPV = $1,000 / 10,000 views = $0.10 per view
This means that the advertiser paid an average of 10 cents for each view of their video ad.
It’s important to note that CPV can vary depending on the advertising platform and the targeting options selected. Advertisers can also optimize their campaigns to improve their CPV by adjusting their targeting, ad creative, and bidding strategies.
CPV vs. CPM
CPV and CPM (Cost Per Mille) are both metrics used in digital advertising, but they measure different things. While CPV measures the cost per view of a video ad, CPM measures the cost per thousand impressions of an ad. Impressions refer to the number of times an ad is displayed on a webpage or app, while views refer to the number of times a video ad is watched by a user.
Advantages of CPV
CPV has some advantages over other metrics used in digital advertising, such as:
- Cost-effective: CPV can be more cost-effective than other metrics like CPC or CPM, as advertisers only pay for views of their video ads.
- Engagement: As users are required to view the entire video ad for it to count as a view, CPV can be a good metric for measuring user engagement.
- Brand awareness: Video ads can be a powerful tool for building brand awareness, and CPV can be an effective way to measure the impact of video ads on brand awareness.