What is CPV?

Introduction

Online advertising is a dynamic part of the digital world. Advertising comes in many shapes and forms yet always has to be visually appealing. Whether you’re producing social media posts or developing a website, aesthetic appeal is always a factor that needs consideration.

When an ad gets created, its purpose is to convey a message to a target audience to elicit a response, such as making a purchase or subscription. Therefore, it is essential that the ad looks good and is easy to understand. The viewer must find it interesting, entertaining, and relatable.

Advertising images can be quite effective. However, even a good image has limitations. A video can surpass these limitations. Video advertising can be a highly compelling form of advertising and is measured by the Cost Per View (CPV).

CPV refers to a payment structure in which advertisers pay publishers every time a user views their video. A view is usually measured by a minimum duration of 30 seconds. CPV can be calculated by taking the total advertising expenditure and dividing it by the total number of video views. This is depicted in the formula below:

Cost-Per-View = (Total Advertising Expenditure / Total Number of Views)

Benefits of CPV Marketing

CPV Marketing can be considered a niche marketing strategy due to its precise nature and requirements. Not everyone can engage in effective CPV marketing since the minimum requirement involves having a video platform, which many websites don’t have. Those who can implement CPV marketing usually do since it’s a great way to get sponsors and increase your outreach.

CPV Marketing is most common on video platforms such as YouTube. Almost every video watched on YouTube is embedded with an advertisement that plays either at the beginning or middle of a video. As a publisher, you stand to gain from implementing CPV marketing in several different ways.

Efficiency

CPV ad systems such as YouTube Ads or Google AdSense have specific algorithms that automate a large number of processes, such as when and where to display your ad. They also include efficient monetization policies which help maximize the possible revenue gained from a specific ad.

Increased Traffic

As a publisher, one of your main goals will be to increase the traffic to your website. This can be done by having compelling and enticing ads that pique the viewer’s curiosity or fill their need somehow. CPV marketing algorithms analyze your business and determine the best target audience for you based on a large variety of metrics, such as demographics. The system then automatically displays the ads to the potential consumer group (those more likely to click on the ad), increasing traffic to your website.

Cost-effective

CPV models are usually highly cost-effective because the payment structure is designed such that the viewer must show a definitive interest in the content of the ad. This is why the standard measurement for payment is determined by whether or not the ad has been viewed for a minimum of 30 seconds. Publishers stand to gain high returns on investment here, as only those genuinely interested in the ad offering would consider the entire ad. This usually leads to an increased retention rate, making it highly cost-effective.

Outreach

CPV marketing helps publishers reach out to audiences well beyond their local area of operation. Statistics show that video content is a preferred and more effective medium of information exchange than images and text (Wyzowl, 2021). Videos are easy to understand, entertaining, and can be shared or exchanged effortlessly, making them more appealing than other forms of social media. Between the CPV algorithms targeting a carefully chosen audience and social media video sharing, publishers stand to increase their outreach by a significant margin, resulting in increased brand awareness and potential customers.

Publishers can become part of a CPV network, where they have the opportunity to obtain partners or support from other publishers and advertisers who can help redirect traffic towards their site. Being part of a CPV network also helps increase outreach through channels that were previously unavailable.

CPV Ad Networks

CPV Ad Networks are systems which bring together advertisers and publishers, managing supply and demand accordingly. Publishers require ads for their sites to drive up traffic and earn money from clicks and advertisers require space for their ads to increase their awareness and traffic as well.

Let’s take a look at some of the top Ad Networks today:

1. Propel Media

Propel Media, a long-standing advertising network, specializes in retaining a steady supply of exclusive advertisers to match with publishers. They prioritize search intent and ensure the highest valued ads are provided to publishers.

2. RTX Platform

RTX Platform operates with Push ads, Fullscreen, Native ads and Custom searches. This provides publishers with a wider range of options when structuring their website, while maintaining the goal of optimizing user experience. Unlike Propel Media, they don’t have an exclusive supply of premium advertisers, but they do cover a wider range of big and small brands, providing publishers with more options that might suit their content.

3. Zeropark

Zeropark isn’t the most popular ad network around, but by no means does that diminish its value. They pride themselves on providing publishers with ad choices such as push ads, parked domains, domain redirects etc. They’re well known for their security features as well as their large offerings for those who are not even members.

4. Google Ads

Google Ads is one of the most reliable platforms available for publishers to use. With a wide variety of tools, analytics and information at your disposal, you usually always have what you need to make adjustments to your site. Google Ads is user-friendly and popular, making it a very common choice, especially among publishers who are just starting out.

Conclusion

Cost Per View marketing is a practical yet specific marketing strategy that publishers can use to their significant advantage. While the strategy has proven very useful, with high retention rates and returns on investment, publishers must ensure that the videos created are of the highest content and quality. CPV models are only successful when the viewer responds positively to the ad, which requires the ad to be unique, exciting, and entertaining.