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Video AD Pricing Models

CPM: Cost per thousand impressions, calculated as CPM = Total Cost / Total Impressions x 1000. For example, a website that charges $1,500 per ad and reports 100,000 impressions has a CPM of $15.

CPCV: Cost per completed view. Pricing model in which the advertiser pays for every time a video ad runs through to completion, calculated as CPCV = Total Cost / Completed Views. Rather than paying for all views, some of which may have been stopped before completion, an advertiser only pays for ads that finished playing.

CPV: Cost per view. Pricing model in which the advertiser pays for every time a video ad starts (each start is counted as a view), calculated as CPV = Total Cost / Total Views.

VCPM: Viewable cost per thousand. Pricing model in which the advertiser pays based on the cost of 1,000 viewable impressions, calculated as VCPM = Total Cost / Total Viewable Impressions x 1000. A viewable impression refers to an opportunity to view an ad for more than two seconds.

VCPV: Viewable cost per view. Pricing model in which costs, views, and viewability are all taken into account to determine what the advertiser pays. Calculated as VCPV = VCPM / CPV where “view” usually means a completed view.

CPAOT: Cost per audience on target

CPE/CPI: Cost per engagement/cost per interaction. Pricing model in which the advertiser pays for every time a user actively engages—or interacts—with an ad. For example, when a user hovers over a lightbox ad to expand it, that’s an engagement/interaction.

Time-Based Pricing: CPH (cost per hour) and CPS (cost per second) are pricing models in which the advertiser is guaranteed a minimum exposure time for their viewable impressions and then charged based on how much time 1000 impressions create.

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