CPV or cost per view is a marketing model in which the marketer pays for the actual visual leads generated by requesting advertising media on the publisher's platform. Now we tell you more.
how does CPV work?
CPV, or cost per view, allows companies to see how much they pay per ad view.
Typically, an advertising platform, such as a video streaming service, social media platform or TV network, allows companies to pay a certain amount to promote their ads. Once that platform promotes an ad, the company can measure the number of views the ad receives, which can help them accurately calculate their CPV.
how to calculate CPV?
- choose a specific time period. To calculate your CPV, you need to choose a specific time period from which you want to extract the information for your calculations. You can choose a shorter time period, such as a week or a month, or you can choose a longer time period, such as several years, depending on your needs.
- calculate your total advertising costs. Calculate your total number of advertising costs paid to an advertising agency or platform during the time period you have chosen. To calculate your total advertising costs, add up all the expenses your company has paid to promote an ad on a platform. Make sure to take into account any recurring bills, such as monthly payments.
- measure the total number of views. Next, measure the total number of views your ad received during the specific time period. To measure the number of views accurately, be sure to include only the times a user viewed more than 50% of the ad, which can help you determine which users actually viewed the ad.
- divide the cost of the ad. Once you have the value of your total ad cost and the total number of views, it's time to make the appropriate division to find the CPV. To do this, divide the cost of an ad by the total number of views, which gives you the CPV.
- interpreting the results: An important part of calculating CPV is to properly interpret the results afterwards.
Top tips for calculating CPV
- Check your numbers. After you have completed your CPV calculations, it is useful to double-check your numbers to make sure your calculations are correct. CPV can sometimes involve large numbers or complex decimals, so it is important to pay attention to detail when checking your calculations. A good way to check your CPV calculations is to run them several times to make sure you get the same answer every time. For example, you can use online software that has CPV calculators to make sure your calculations are correct and accurate.
- Perform calculations on a routine basis - it can be beneficial for businesses to periodically calculate their CPV, as the number of views an ad receives can fluctuate based on a number of factors, such as increasing brand popularity and/or growing social media followers. To make sure your CPV calculations are up to date, try to perform them several times a year or during a sales period.
- Compare CPV with other advertising platforms. Once you haveyour CPV calculations, you can assess how much your current CPV costs compared to other advertising platforms. Most advertising platforms can provide businesses with an estimate of how many views their ads are likely to receive and the average cost of advertising. Take that estimate and compare it to your current CPV to see which is the lowest value.
Cost per view and video marketing
CPV is one of the most widely used marketing metrics in video marketing campaigns, especially within companies such as YouTube, Google and Facebook, which offer this billing model among their different options.
Its growing popularity is due to its transparency and, above all, the data and information that can be collected on the interests of users. In addition, through the Cost per View you can make a much more accurate budget. Best of all, the company only pays for videos that have been played by the same user request, so there is already initially an interest from the user towards that content. For all these reasons, within video marketing campaigns, the Cost per View or Cost per View is used more and more frequently.
We hope you have learned what CPV is, how it works and how to calculate it, and that following our tips will make the whole process much easier for you. Thanks for reading!
