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How does a CPV campaign work?
A campaign in the CPV model, i.e. Cost Per View, works on the principle of paying for each display of a video ad.
Here's what it looks like step by step:
Campaign setup: First, you create a video ad campaign on a site like YouTube or the Google Display Network by specifying your goals, target group, budget, and maximum CPV bid, which is the maximum amount you're willing to pay for a single view.
Determining your CPV bid: You decide how much you want to pay for each impression. You can set a maximum CPV bid, which is the maximum amount you'll pay for someone to view or engage with your ad. Your CPV bid can influence how often and where your ad appears.
Campaign start: Once your campaign starts, your video ads are shown to people in your target audience. In the CPV model, an impression typically means that a user viewed your ad for a specific period of time (for example, 30 seconds) or engaged with it in some other way, such as clicking on a link to your site.
Billing: You pay only when the user meets the viewing conditions defined in the campaign, i.e. watches the ad for the required time or clicks on it. If your ad doesn't meet these terms, there's no cost to you.
Optimization: Based on campaign results such as impressions, interactions and other performance metrics, you can adjust your campaigns to improve their performance, for example by changing CPV bids, target audience or ad content.
CPV campaigns are particularly attractive to brands and content creators looking to increase awareness of their brand or product because they allow for accurate monitoring of audience engagement with advertised video content.
When is CPV profitable?
CPV, or Cost Per View, pays off in specific scenarios, especially when your main goal is to increase brand awareness and audience engagement, and not necessarily immediate conversion into sales.
Here are some situations where the CPV model can be particularly beneficial:
Building brand awareness: If you want as many people as possible to know about your brand, product or service, CPV is a good choice. You only pay for actual impressions of your ad, ensuring your messages reach your audience.
Promoting video content: When you have compelling, engaging video content that can attract attention and build relationships with your audience, CPV allows you to focus on the reach of that content. This is a great way to promote videos that inform about your brand, educate or entertain.
Reaching a Specific Target Audience: If your campaign targets a very specific audience, CPV can help you reach them in a more cost-effective manner. You can use advanced targeting options offered by platforms like YouTube to ensure your ads are shown to the right people.
Engagement-focused campaigns: When you're targeting audience interactions such as shares, comments, and likes, CPV is a good choice because it focuses on impressions, which are the first step to further engagement.
Video content testing: If you're experimenting with different types of video content to see which resonates best with your audience, CPV allows you to test that content at a relatively low cost, giving you insight into your audience's preferences and behavior.
However, it is worth remembering that CPV may not be the most cost-effective model for strictly sales purposes or when you want to generate direct conversions. In such cases, other billing models, such as CPC (Cost Per Click) or CPA (Cost Per Acquisition), may offer a better return on investment.