Cost Per View (CPV)
Cost Per View (CPV) is an online advertising payment model where the advertiser pays for each view of a video advertisement.
This model is most commonly used in video advertising, for example on video hosting platforms, streaming services, and social networks.
How the CPV Model Works
The principle works as follows:
- A user sees a video ad before, during, or after the main video content.
- If the user watches the ad for a certain amount of time or until the end, the system counts it as a view.
- The advertiser pays for each counted view.
In different advertising systems, a view may be counted differently — for example, after 30 seconds of viewing or after a short video is watched completely.
CPV Formula
The metric is calculated as follows:
[
CPV = \frac{\text{Advertising spend}}{\text{Number of views}}
]
Calculation Example
Suppose:
- The advertising campaign cost €500;
- The video ad received 25,000 views.
Then:
[
CPV = \frac{500}{25000} = 0.02
]
The cost per view would be €0.02.
Where CPV is Used
The CPV model is applied in:
- Video advertising on video platforms;
- Advertising campaigns on social networks;
- Mobile applications;
- Ad networks with video content.
When CPV is Used
This model is particularly effective when the goal of the advertising campaign is to increase brand awareness and audience reach.
CPV is often used for:
- New product launches;
- Brand promotion;
- Video campaigns aimed at wide reach.
Key Takeaways
Cost Per View (CPV) is a payment model for video advertising where the advertiser pays for each view of the ad.
It helps evaluate the effectiveness of video campaigns and control the cost of audience interaction with video content.
