What is cost per view (CPV)?

Cost per view (CPV) is a video ad metric that shows how much you pay each time a user views your video. It’s often used to evaluate engagement when you’re using video or interactive formats like collection ads or carousel ads. What’s important to note is that the platform and ad format will determine what classifies as a view. 

For example, on YouTube and Google, when a user watches the first 30 seconds of your in-stream video ad, it will be seen as a view. However, if it’s a YouTube Shorts ad, the duration that counts as a view is only 10 seconds.   

How do you calculate CPV?

To work out your CPV, you divide your total cost of the ad campaign by the total number of views. 

For example, if you spent $1,000 on a Catalog Ad campaign that generated 2,000 new product views, your CPV is $0.5.   

Why is CPV important in e-commerce?

CPV gives you a granular view of how effectively your video ads are generating attention. The lower your CPV, the better your videos perform. 

It can also support budget optimisation. By tracking CPV across different platforms, you can identify which channels (e.g. YouTube, Meta, or Google) offer the best value and shift more of your budget toward the high-performing channels. 

When it’s used to measure the performance of your Catalog Ads specifically, it can also help you identify which products are driving more attention. Products featured in ads with a low CPV can suggest high consumer interest.     

Which factors can impact your CPV?

Target audience

If you’re targeting high competitive demographics or high-income countries, your CPV tends to be higher. Audience interests can also increase the price as niche audiences are more expensive to reach.  

Ad quality

Platforms reward brands showing relevant ads that consistently generate good engagement with a lower CPV. The quality of your videos and thumbnail will also increase the chances that users will stop scrolling and watch your video ads.  

Platform, placement, and format

CPVs vary widely by platform. Then, the placement and format of your ad can also increase the price.

A/B testing

Refining your creatives can help you decrease your CPV. As mentioned, ads that generate good engagement consistently are rewarded with a lower CPV. A/B testing will help you find which creatives perform better, allowing you to improve your ad accordingly. 

Best practices in measuring CPV

Benchmark and test regularly

To help you identify the most-effective strategy and platform, it’s key that you continuously test and benchmark your video ads. This includes comparing your CPV across different audiences, platforms, video creatives, and time of day. 

Align CPV with campaign goal

Use your campaign goal to determine how much weight your CPV should carry. For example, if the goal is to generate brand awareness, CPV will play a key role. On the other hand, if your campaign’s aim is to generate leads or sales, focus less on CPV and more on cost per lead ( CPL) or cost per sale ( CPS).  

Consider the view quality

A low CPV from uninterested shoppers may cost less, but it will likely be less valuable as these viewers are unlikely to convert. As such, segment by audience and compare your CPV with conversion rate (CVR/CR) and click-through rate (CTR) to gain a more comprehensive picture. Then, optimise your video ads for the highest effective CPV (views that lead to outcomes) instead of simply the lowest CPV.