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What is CPV?
CPV (cost per view) is a key metric used in video advertising. It determines the cost of one view of a video ad and serves as an important tool for evaluating its effectiveness. Advertising platforms use the CPV metric for calculations with advertisers, allowing brands to attract interested users who watched the video to the end or up to a certain point. This enables more precise targeting of advertising campaigns and optimization for better results.
CPV Calculation Formula
To determine the cost per view, you need to divide the total advertising expenses by the number of views of the video. The formula is as follows:
CPV = advertising expenses / number of views
For example, if a brand spent 50,000 rubles on a video campaign and received 5,000 views, the CPV would be:
50,000 ₽ / 5,000 views = 10 ₽
Data on expenses and views can be obtained through the statistics of advertising systems, and some platforms, such as "Yandex Direct," calculate CPV at the campaign setup stage.
What CPV figure is considered optimal?
Determining the optimal CPV for a company is quite challenging since the cost per view depends on many factors:
- The platform where the ad is placed;
- The specifics of the business;
- Competition in a specific field;
- The quality of the creative;
- Targeting settings and other parameters.
To find out the optimal value for your company, it is necessary to test various platforms and creatives based on the results obtained.
When is the CPV advertising model used?
The CPV advertising model is available for video advertising on systems like "Yandex Direct," Google Ads (YouTube), "Zen," and myTarget (including "VKontakte" and "Odnoklassniki"). This model is most effective at the top of the sales funnel, when the user is not yet aware of the product or service. The video can engage them and prompt them to visit the website, opening up opportunities for further interaction with the brand through remarketing and other tools.
How do advertising platforms count views?
Each platform has its own criteria for determining when a view is considered valid:
- On YouTube (Google Ads), payment is charged if the video ad plays for 30 seconds or to the end if the video is shorter;
- On "Zen," a video is considered viewed if it plays for at least 30 seconds (for long videos) or to the end (for short ones);
- On myTarget, payment is charged after 10 seconds of viewing;
- On Facebook* Ads, the advertiser can determine what counts as a view: watching to the end or continuous viewing for the first two seconds and longer.
CPV vs CPM: What’s the difference?
The CPV and CPM (cost per thousand impressions) models are often confused, but there are significant differences between them:
| Criterion | CPM | CPV |
|---|---|---|
| Model Principle | Payment for a thousand impressions, regardless of the user's interest in viewing. | Payment for each view; the user can turn off the ad at any moment. |
| Audience's Perception of Advertising | Often negative | Neutral or positive. |
| Outcome for the Advertiser | Large reach but low engagement. | Reach of interested users ready to interact. |
| Model Use | Suitable for increasing brand awareness. | Effective for boosting awareness and driving traffic to the site. |
Advantages and disadvantages of the CPV model
The CPV model has its advantages and disadvantages:
Advantages:
- Ads do not generate negativity, as users interact with them at their own discretion.
- Cost savings on attracting an interested audience.
- Potential for viral distribution of creative content.
Disadvantages:
- The need for significant expenses to create quality content.
- Oversaturation of the internet with content makes it difficult to attract attention.
- The model does not provide as wide a reach as CPM.