Cost per completed view (CPCV) is only used for online video ads, typically to measure the effectiveness of advertised video content. The CPCV model is a low-risk strategy that saves marketers from wasting their ad spend on meaningless impressions since they only have to pay for videos with completed views. In other words, it ensures that marketers are solely investing in users that demonstrate high engagement, which is beneficial for improving user retention and audience targeting.
It is important to note that the definition of a “completed view” varies depending on the ad platform and its marketers/publishers. For instance, YouTube counts 30 seconds as a completed view, Instagram counts 15 seconds for videos and 3 seconds for stories, and TikTok considers 6 seconds (or the full duration if the video is shorter than 30 seconds) as a completed view.
Cost per completed view (CPCV) can be calculated as follows:
CPCV = (Total Advertising Cost) / (Completed Video Views)
For instance, if you spent a total of $1,000 on your video ad campaign and you reached 100 completed views, your CPCV would be: $1,000/100 = $10.
Cost per view (CPV) is another commonly used pricing model that measures the performance of video ad campaigns. Unlike cost per completed view, which is measured based on view completions, with the CPV model, marketers have to pay for every video that is viewed for one second or more. CPV can be useful for broader, more large-scale marketing campaigns aiming to raise brand awareness, while CPCV is better for a more detailed analysis of user engagement.