CPV

CPV (Cost Per View) is an advertising model where payment is generated for each view of an advertisement. It is commonly used in video formats such as YouTube, in-app videos, and pop/video networks. A view is counted when a user watches a video to the end or for at least a few seconds (for example, 30 seconds on YouTube) and interacts with the video (clicks a button or link). CPV is useful in arbitrage for evaluating the cost of engagement rather than display.

Where is CPV used: platforms and verticals

CPV applies across various video formats, including YouTube, TikTok, Facebook, Instagram, Adsterra, and Exoclick advertising networks. It is convenient to use in apps with rewarded video format, adult traffic, and teaser/pop platforms with autoplay. CPV is especially relevant in verticals where the user needs to be warmed up first: nutra, dating, crypto, and gambling. Video creatives are great at holding the user's attention, which encourages them to click on the offer.

CPV vs CPM — what's the difference?

With CPM (Cost Per Mille), the payment is based on 1,000 displays, regardless of whether the user viewed the advertisement or scrolled past it. With CPV, payment is only made if the user watches the video. The CPV payment model is more accurate and profitable if the video creative is engaging, while CPM is preferable if reach is more important than quality. With CPV, the payment is based on interest, which leads to engagement and, ultimately, lead generation. With CPM, the fee is based on the fact that the ad appeared on the screen, so it is recommended for reach, brand awareness, and remarketing.

How to reduce CPV and increase ROI?

To reduce CPV (Cost Per View) and simultaneously increase ROI (Return on Investment), it is essential to optimize the advertising campaign at all stages, from creative to targeting and post-click. Here are some specific tips that can help:

• Create short, catchy video creatives; the first 3 seconds are crucial.
• Use autoplay platforms with device and geo targeting.
• Optimize your audience by narrowing it down, testing different segments, and using look-alikes to increase engagement.
• Enable tracking to measure where attention drops off and adjust accordingly.
• Test formats by using vertical video, subtitles, and call-to-action.
• Choose sources with flexible rates and manual control, as this way it's easier to get the most out of them.
• Enhance the funnel and landing page by incorporating preheating and eliminating elements that impede conversion. The page should be fast and easy to understand.

CPV optimization is all about balance. The point is not to make views cheap if there are no clicks or actions after viewing, as such advertising is pointless. It makes more sense to pay a little more but get targeted actions. After all, the main thing is not the price per view, but the conversion after it.