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Online Video Advertising. CPM or CPV?

While surfing the Internet, we watch videos. Many people think that showing and watching are the same things. However, the difference is colossal. The principal difference between these two video advertising payment models is already clear from the title: in the first case, the user is shown a video, in the second – he watches it himself.

There are two types of online video advertising: CPM (cost per millennium) – pay per thousand runs and CPV (cost per view) – pay per view.

Most popular video-ads formats with runs-based pricing are pre-rolls, post-rolls and mid-rolls. And the user takes such an advertisement in the same way – he tries to “change the channel”, i.e. in the case of a preroll, click the “skip ad” button (assuming it is there) and quickly go to view the content for which he came here . In other words, apart from irritation, such advertising causes nothing.

Prerolls and other video advertising CPM formats are not just “ideological successors” of TV format, but actually duplicate it online and are sold, as a rule, to the load to TV air by the same well-known TV sellers. Thus, the decision to buy a preroll is dictated not only and not so much by considerations of the effectiveness of such advertising, but rather by considerations of the fulfillment of commitments to air monopolists. For the sake of fairness, it should be noted that this format also does not stand still and develops, adapting to the specifics of content consumption on the Internet, but still remains the format shown to the viewer against his will.

We now turn to CPV. I started with pre-rolls, so that on this background you could see more clearly the difference between these formats. By the way about the format. At its core, the placement of a CPV (or siding, sowing) is a news post on a website or in a social networking group that contains a video and, depending on the need, an accompanying text and link. Such placements are carried out with the help of special services (for example, Viboom siding platform). Unlike the preroll, in this case the viewing of the video is initiated by the user. The name of the video, the accompanying text, a picture of the preview – something of this “hooked” the person and he decided to watch the video. Thus, watching the video is paid conscious attention of the viewer. He does not watch ads, he consumes content, which he wanted to watch. Therefore, emotionally, the user is more inclined to consume information than in the case when the advertisement “obstructs” the desired video.

In addition to the advantages in terms of the quality of contact with the consumer, this format of accommodation also has quite a tangible plus in the form of initiation of so-called YouTube effect. Let’s say you ordered 1 million video views. During the day, your video was placed by admins of 300 sites and on the very first day they made, say, 300 thousand views. The video immediately falls into the top popular YouTube videos, from where it is picked up by the audience of this YouTube section. Due to the fact that YouTube visitors watch the video, plus the main placement on the venues continues, the video is in the top for several days. As a result, instead of the ordered million, you see already 2.5–3 million views on the counter. Good result in less than a week! And this is the case if the video has an intriguing title and a good quality of creativity. One can imagine what would happen in the case of a real “virus”!

Despite the fact that this format of placement allows you to guarantee user views, a really good video is necessary for really high performance campaigns. As a point in this article, I want to say to advertisers and agencies: instead of posting adapted television spots that are not interesting to anyone on the Internet, do not skimp on good creative work – it will replay you many times in the form of additional views and in the form of user loyalty.