YouTube Ads CPV 2021: What Does CPV Mean?

YouTube Ads CPV

You may be asking yourself what does YouTube Ads CPV mean? 🧐

Don’t Worry! It’s a simple concept. 😃

Cost-Per-View (CPV) is a new billing model in social media marketing, video marketing, and online marketing.

Today, Biteplay will help you on YouTube Ads CPV by providing all the information you need to understand everything correctly. 🦾

The YouTube Ads CPV principle should be known from impression-based campaigns by a user’s action, such as a click on expand, play, or skip on a video ad.

Thus, Cost Per View is similar to models based on the Cost Per Action policy and it is an important section of digital marketing campaigns.

This information may be overwhelming at first, but don’t worry, we’ve got you covered! 😉

After reading this blog, you will understand YouTube Ads CPV with its other details, and you will be more in touch with the concept.

Let’s start by some important questions! ✌️

Why Should You Use YouTube For Advertising?

YouTube Ads CPV

As you may know, YouTube is the second most used platform on social networking with over than 1.5 million users logging in every month!

YouTube is also the most popular video search engine on the internet.

Let’s think about it together… 😇

YouTube is available on any device you want, it may be an iPad, Tablet, Mobile Phone, Computer, or even a Smart T.V!

The minimum time a user spends on YouTube is 1 hour, so imagine how huge is the community!!

As you saw, YouTube is very important and it will give you big advantages if you followed the right steps.

What is The Definition of YouTube Ads CPV?

Cost Per View:

Cost-Per-View or CPV is a system of charging for video advertisements based on the number of views or interactions an ad receives.

That means you are ready to pay up to your bid amount for each ad (it may be 30 seconds or longer).

You will also set the highest price you are ready to pay per day.

Moreover, CPV advertising opportunities provide a platform for eCommerce sellers to connect with their related audience.

How Much Do YouTube Ads CPV Cost?

YouTube Ads CPV Cost

First of all, there is no exact price you have to pay for an ad on YouTube.

But there is an average Cost-Per-View for YouTube Ads, it’s between (0.010$ – 0.030$) and the advertiser who reaches 100,000 viewers will get a reward! 😮

Let’s discuss the average costs of YouTube Ads CPV types:

In-Display Ads: $0.30 Average Cost-per-View (CPV).

In-Search Ads: $0.10 Average Cost-per-View (CPV).

CPV vs CPC vs CPM: What’s the Difference Between Their Bidding?

There is an essential difference between “bidding strategy” (how the bidding model of the platform works) and “billing method” (how the platform charges you).

The billing method is how you’ll have to pay the platform.

For example, CPM billing means how much you’ll pay for each 1000-impressions you generate.

The bidding strategy is the term of what the AI (Artificial Intelligence) of that unique platform will optimize towards.

For example, CPM bidding means optimizing for the cheapest cost-per-thousand-impressions, likewise clicks for CPC and views for CPV bidding.

The difference between CPM, CPC, and CPV bidding is how you want your campaign/ad set to run.

CPV Bidding:

CPV Bidding

You should pick CPV bidding if you want users to see your video ads.

This will fit if your advertising creative is a video form, and you hope users watch your video either entirely or to a certain point.

In CPV, the bidding model will require determining whether the user will watch the video ad or not.


CPM Bidding:

You should take this kind of bidding if you want users to see your ad and earn mindshare without immediately taking action.

So, the difficulty for the model is to adjust its budget with how much this impression will require and determine how much it is prepared to place the bid.

CPC Bidding:

You should take CPC bidding if you want users to click your ad to reach your product page or your landing page.

CPC bidding is suitable for the advertisers who were trying to reach contacts or leads.

In CPC, the bidding model will choose the users that will most likely click.

The point is, CPV is a perfect option if you want to develop your brand awareness.

Let’s assume that you are a restaurant owner who wants more repeated customers.

But, at the same time, you offer a Happy Hours that you wish to spread out.

CPM would be a great way to reach your audience and show them your proposal, while CPV can help you raise the frequency of your customers’ visits.

YouTube Ads CPV Formula: How CPV is Calculated?

The equation to work out the Cost Per View of your YouTube videos couldn’t be simpler:

Marketers use some metrics to decide whether the Cost-Per-View matches their campaign requirements and it is done by testing how much playback of an ad video is deserving.

The CPV is determined by dividing the total advertising costs over the number of views.

CPV = Cost ÷ Views

CPV Formula

How YouTube Ads CPV Works?

While creating your ads group in a video campaign, you must put the highest price you want to pay per view.

Your bill is called your most significant CPV bid, or simply “Max. CPV”.

So, this bid fits to all ads in an ad group.

There is a variation of Cost Per View pricing compared with the other billing forms, and it is related to the user purpose.

What YouTube Ads CPV Could Do?

YouTube Ads CPV values engage the user by ​​providing a deep insight to him, therefore worthy data for marketers and publishers.

This data defines budgeting and also raises the transparency of the billing model.

Then, guess what marketers have to pay? 🤔

Yes, they pay only for the video ads, which the users have received.

Besides that, a user can view a viral video without involving with a particular brand.

CPV can test the effectiveness of the advertising campaigns in pre-defined goals.

How to Target Your Video Ads?

YouTube Ads CPV

How would you target several people when you buy AdWords in Google Search?

Similarly, you will find a Targets tab for any of your video campaigns.

If you want to keep your YouTube Ads cost down and guarantee that you earn enough clicks and make sure your campaign is profitable, you should target the correct people that fit your ads.

Now, you may be thinking about keywords.

What words would you use for targeting the audience when they search for YouTube videos?

The more you control this, the less unnecessary cost you will have from people watching your videos.

If you are targeting older women, you would have no interest in your ad looking on any of PewDiePie’s videos, for example.

You will want to use positive keywords to concentrate and avoid negative ones. 😄

You may want to restrict your ad to countries where the major of people speaks English.

There is an important thing which is supposed to be clear:

If you only trade your product in one country, you need to avoid advertising to the rest of the world.

The point is that you do not want somebody watching your ads never buy your products.

So, in addition to the joyful of your ads, it must be studied well.

Here, Biteplay provides you with some great features for targeting and keywords:

  • Find your most suitable keywords:
BitePlay for Keywords
  • Find you most suitable videos for placements and targeting:
  • You can also use Biteplay’s influencers feature, to find influencers on YouTube:

How CPV Changed From Other Sorts of Online Advertising?

The differentiating feature that departs CPV from other bid-based advertising methods, such as Cost-Per-Impression (CPM), requires conscious recognition from the viewer receiving the video ad.

In Google’s AdWords policy, the CPV cost is not charged except the viewer either views the ad for at least 30 seconds or immediately communicates with it, such as clicking an embedded link.

So, it makes CPV-based video advertising more affordable for marketers, as they are not charged for spectators who instantly click away from an ad without any interest.

The CPV method is commonly connected with Google and their TrueView process for sharing YouTube-based advertisements, but other holes like Facebook have begun testing with related projects.

What You Will Pay?

Your Max. CPV bid is the most that you will be paid for a video view, but you will not always be paid this maximum value.

Wherever possible, YouTube attempts to charge you only what’s essential for your ad to appear.

The final price that you spend for a view is called the actual CPV.

But, actual CPV is often smaller than Max. CPV because in the Google Ads sale, you do not pay more than what’s required to rank higher than the advertiser directly below you.

Let’s assume you want your highest CPV bid to be 50 cents, and a competitor’s bid is only 40 cents, for example.

So, to have your ad placed above theirs, your actual CPV will be 41 cents. Then, for each view, your ad gets charged 26 cents.

Simple, right? 😊

Ad Rank and Quality Score are the two factors that change the actual YouTube Ads CPV that you pay.

Your Quality Score estimates how related your ad is to a client and involves many performance factors such as view rates.

Once your Quality Score is defined, it’s multiplied by your Max. CPV bid to put your ads between other advertisers. That’s called Ad Rank.

Does YouTube Ads CPV Affect Your Ad Rank?

YouTube Ads CPV

The max. CPV bid you established helps manage your ads possibilities of getting the sale and appearing to viewers.

For TrueView video discovery ads appearing on YouTube search events, it can also influence your ad’s placement with other ads on the search results side.

A higher max. CPV will boost your ad’s chances of rising and improve your ad’s chances of appearing in a higher rank linked to other ads, if suitable.

Conclusion About YouTube Ads CPV:

YouTube Ads CPV

We hope that you understood YouTube Ads CPV very well, how it works, and how you can calculate your income.

You can depend on BitePlay’s tips to keep your YouTube Ads in front of your audience and make sure your campaign is profitable.

You can also visit BitePlay’s Academy to learn more about YouTube ad placement and get the best results by catching your campaign goals!

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