Definition

Cost Per View (CPV) is a digital advertising pricing model where advertisers pay for each instance when their ad is viewed by a user. In the context of online video advertising, CPV specifically refers to the cost an advertiser incurs each time their video ad is watched by a viewer. CPV is commonly used on platforms such as YouTube, where advertisers bid for placements and pay only when their video ad is watched either in its entirety or for a specified duration, often a few seconds. You can calculate cost per view with the formula displayed in the image below.

Here's a breakdown of CPV:

1. Cost Structure: In CPV, advertisers are charged based on the number of views their video ad receives. Unlike other advertising models like Cost Per Click (CPC) or Cost Per Mille (CPM), where advertisers pay for clicks or impressions, CPV focuses on actual views of the video content.
2. Billing Method: Advertisers are billed for each view of their video ad. The specific criteria for what constitutes a view may vary depending on the platform and the advertiser's preferences. For example, some advertisers may specify that they only want to pay for views that last a certain duration, such as 10 seconds or longer.
3. View Definition: Views may be counted differently across platforms. For instance, some platforms may count a view when a user watches a certain percentage of the video (e.g., 30 seconds out of a 60-second video), while others may count a view when the user engages with the video in some way, such as clicking on it to expand to full screen.
4. Ad Placement: CPV ads are typically displayed before, during, or after video content on platforms that support video advertising. Advertisers bid for ad placements based on factors such as audience demographics, targeting criteria, and available inventory.
5. Effectiveness Measurement: Advertisers often track key performance indicators (KPIs) to evaluate the effectiveness of CPV campaigns. These may include metrics such as view-through rate (VTR), which measures the percentage of viewers who watched the entire ad, as well as engagement metrics like likes, comments, and shares.
6. Targeting Options: CPV campaigns often offer various targeting options to help advertisers reach their desired audience. These may include demographic targeting (age, gender, and location), interest targeting (based on user behavior and preferences), and contextual targeting (based on the content of the video being watched).

Overall, CPV offers advertisers a way to reach their target audience through engaging video content while only paying for actual views of their ads, making it a cost-effective advertising option for brands looking to leverage the power of video in their marketing strategies.

Function

In neuromarketing, Cost Per View (CPV) can serve several functions aimed at understanding consumer behavior, preferences, and responses to video advertising. Here's how CPV is utilized in neuromarketing:

1. Engagement Measurement: CPV allows neuromarketers to measure the level of engagement consumers have with video advertisements. By tracking how many viewers watch an entire ad or a significant portion of it, marketers can gauge the effectiveness of the ad in capturing and maintaining attention. Neuromarketing techniques such as eye-tracking and EEG (electroencephalography) can complement CPV data by providing insights into which elements of the video content are most engaging to viewers.
2. Attention Allocation: CPV data helps neuromarketers understand how attention is allocated during video viewing. By analyzing when viewers drop off or stop watching an ad, marketers can identify moments of high and low engagement within the video content. Neuromarketing tools such as fMRI (functional magnetic resonance imaging) and biometric sensors can provide additional insights into the neural and physiological responses associated with attention shifts during video consumption.
3. Emotional Response Assessment: CPV metrics can indicate the emotional impact of video ads on viewers. Neuromarketers can analyze viewer behavior, such as likes, comments, and shares, to assess emotional engagement with the content. Additionally, neuromarketing techniques like facial expression analysis and galvanic skin response (GSR) can provide deeper insights into the emotional responses elicited by specific moments in the video ad.
4. Memory Encoding: CPV data helps neuromarketers evaluate the memorability of video ads. By tracking how many viewers return to watch an ad multiple times or share it with others, marketers can infer the ad's impact on memory encoding and brand recall. Neuromarketing methods such as implicit memory tests and neuroimaging can further assess the neural processes involved in encoding and retrieving memories associated with the ad.
5. Neuro-segmentation: CPV allows neuromarketers to segment audiences based on their viewing behavior and engagement with video ads. By analyzing CPV data alongside demographic and psychographic information, marketers can identify distinct audience segments with varying preferences and responses to video content. Neuromarketing techniques such as cluster analysis and machine learning algorithms can facilitate the identification of neuro-segmentation patterns within the audience data.

Overall, CPV serves as a valuable tool in neuromarketing for understanding how consumers perceive, process, and respond to video advertising at a neuroscientific level. By integrating CPV data with neuromarketing techniques, marketers can optimize video ad content to effectively engage and influence target audiences.

Example

Let's consider a scenario where a company is launching a new product and wants to create a video ad campaign to promote it. They decide to employ neuromarketing techniques, including Cost Per View (CPV) analysis, to optimize their ad content and maximize its effectiveness.

The company starts by developing several versions of the video ad, each emphasizing different product features and benefits. They then launch these ads on various digital platforms, such as social media and video streaming websites, with different CPV bidding strategies.

Using CPV metrics, the company tracks how many views each ad receives and analyzes viewer behavior, such as engagement rates and drop-off points. They also incorporate neuromarketing techniques, such as eye-tracking studies and facial expression analysis, to gain deeper insights into viewers' attention and emotional responses during ad viewing.

Based on the CPV data and neuromarketing insights, the company identifies which version of the ad performs best in terms of viewer engagement, attention retention, and emotional impact. They also uncover specific moments within the ad that resonate most with the target audience.

With this knowledge, the company optimizes their ad campaign by reallocating budget towards the top-performing ad variant and refining the content to amplify its most compelling elements. They also adjust their targeting parameters to reach audiences most likely to respond positively to the ad.

As a result of leveraging CPV analysis and neuromarketing techniques, the company's video ad campaign achieves higher viewer retention, increased brand engagement, and improved conversion rates compared to traditional approaches. This demonstrates how integrating CPV into neuromarketing strategies can enhance the effectiveness of video advertising campaigns and drive better results for businesses.