What is CPV Marketing?

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The CPV model is beneficial to advertisers, as they can be sure they’re only paying when video ads get watched.

As any good ad exec knows, video marketing is key in today’s mobile-first, high-tech environment. The rise of video advertisements has the industry moving away from a traditional CPM structure, in which ads are a set price, regardless of how many people interact with them. Instead, many advertising pros are turning to CPV marketing, which ensures that they only pay for ads people actually look at.

But what is CPV marketing, exactly? Why is it useful? Follow along as we take you through the ins and outs of CPV marketing.

What is CPV marketing?

CPV is short for “cost per view.” In other words, it’s a method of marketing in which advertisers only pay for videos that are actually watched, which is advantageous for them. It’s a good arrangement when making sure your advertising budget goes as far as possible.

Of course, what qualifies as a “view” varies depending on the source. For example, Google defines a view as 30 seconds (or the duration of the video, if the ad is shorter than half a minute). Twitter’s view duration is much shorter: about “two seconds of playtime with at least 50 percent of the video on the screen,” according to Ad Age. The reason for such variances is that users interact with different platforms in entirely different ways, and as a result they expect the time ads require to reflect this. This is important to keep in mind when crafting a video ad campaign.

Why is CPV marketing beneficial?

One reason CPV marketing is so beneficial to advertisers is that they know they’re getting their money’s worth out of a good video ad campaign. Measuring success (and price) by views provides an immediate metric into how ads are performing, what tactics are working, and what areas need attention. It’s not as risky as more traditional ad payment structures. If views aren’t actually being successfully delivered, the advertiser doesn’t end up paying for something that nobody is watching.

As Ad Age points out, with marketers duking it out for consumers’ ever-shortening attention spans, every view matters. As a result, the quality of ads and ad placement rises as well. “Performance advertisers are turning to CPV for a variety of factors… Performance advertisers are able to obtain high-quality users by paying for just a view in front of premium traffic, giving them a competitive advantage when battling for inventory.”

Now that you know more about CPV marketing, that knowledge should help fuel your next big ad campaign. Need more information about all things mobile advertising? The experts at Tapjoy are standing by and ready to help.

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