CPV (Cost-Per-View)
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(Also known as Cost-Per-View)
CPV, or Cost-Per-View, is a video advertising model where advertisers pay only when a user watches a video ad for a minimum of 30 seconds or engages with it. This ensures that advertisers are only charged for actual engagement, making it popular for video campaigns on platforms like YouTube and Facebook.
How CPV Works
When an advertiser launches a CPV campaign, they bid on placements for their video ads across different digital platforms. The advertiser is charged only when a user meets specific engagement criteria, typically:
- Watching the ad for at least 30 seconds (or the entire ad if it’s shorter).
- Clicking on the ad or engaging with an interactive element (such as a call-to-action button).
For example, if a fitness brand runs a video campaign on YouTube using CPV, they will only pay for views when users watch at least 30 seconds of the ad or click on the «Sign Up Now» button. If a user skips the ad before the 30-second mark and does not interact with it, the advertiser isn’t charged.
CPV vs. Other Video Ad Pricing Models
| Pricing Model | How It Works | Best For |
| CPV (Cost-Per-View) | Advertisers pay only when users watch or interact | Engagement-focused video ads |
| CPM (Cost-Per-Mille) | Advertisers pay per 1,000 ad impressions | Brand awareness campaigns |
| CPC (Cost-Per-Click) | Advertisers pay when a user clicks the ad | Traffic-driven campaigns |
| CPA (Cost-Per-Acquisition) | Advertisers pay when users take a specific action (e.g., sign-up, purchase) | Performance-driven ads |
CPV is particularly useful for brands focused on video storytelling and engagement, rather than just impressions or clicks.
Benefits of CPV Advertising
CPV has gained popularity in video advertising due to its cost-efficiency and engagement-driven approach. Some of its key advantages include:
- Pay for Real Engagement: Unlike CPM, where advertisers pay for every impression (even if the user ignores the ad), CPV ensures that only genuinely interested viewers are counted.
- Better ROI for Video Ads: Since brands only pay when users engage, CPV can lead to a higher return on investment compared to other pricing models.
- Enhanced Audience Targeting: CPV campaigns can be optimized with targeting options like demographics, interests, and behaviors, ensuring the right users see the ads.
For advertisers focused on capturing audience attention rather than just generating views, CPV provides a way to measure success through real engagement.
Challenges of CPV Advertising
While CPV offers clear advantages, it also comes with some challenges:
- Higher Costs for Premium Placements: Since CPV ensures engaged views, advertisers often bid higher to secure premium placements.
- Viewability Limitations: Some users may watch 30 seconds of an ad without true interest, leading to wasted ad spend if the targeting isn’t refined.
- Limited Reach Compared to CPM: Since CPV focuses on engagement rather than just impressions, fewer users may see the ad compared to a standard CPM campaign.
Advertisers using CPV must carefully balance their bidding strategy and ensure they are targeting the right audience to maximize the effectiveness of their campaigns.
