Glossary

AdTech industry is vast and ever-changing. It might be hard to keep up with all the new slang, but worry not - our glossary will keep you properly updated!

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Cost per View

What is Cost per View ?

A price the advertiser pays every time their ad is displayed. Traditional brand awareness marketing is used to employ it, but currently, mobile user acquisition campaigns also use it. In the world of online advertising, it's one of the most often used payment schemes. CPV differs significantly from other forms of advertising. It only targets viewers who consciously choose to pay attention (the advertiser will pay only if and when the user has watched their video intentionally).CPM is designed as an alternative to traditional impression-based digital advertising models such as Cost Per Completed View (CPCV). Considering that video advertising is meant to last longer than the standard one- or two-second impression period, cost per view has been hailed as an efficient approach to price video commercials while also better measuring viewer interest. In 2011, the Interactive Advertising Bureau (IAB) received the first endorsement of the cost-per-view model from Google and TubeMogul. Since then, the use of CPV in the video advertising sector has grown steadily.

Despite the IAB's and other organizations’ efforts to standardize terminology, several crucial notions like "views" remain ambiguous. Video advertising metrics, such as cost-per-view models, have long been plagued by a lack of consensus on definitions and measuring standards. Publishers and advertisers have easy access to technologies and platforms that track how consumers react to adverts and what they click on. Users who click on the "skip" option will be tracked each time the ad plays, how much of it was on the user's screen when it was permitted to play, and how long it was allowed to play in the case of video commercials. The advertisers who own the ad can then be informed of this data. Based on predetermined payment rates, this information can be used to calculate how much an advertiser owes the publisher.

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