What It Is
Cost Per View, or CPV, is the amount you pay each time someone watches your video ad on platforms like YouTube. It is the main pricing model for skippable video ads. You are charged for a view, not just for the ad appearing, so it measures the price of actual attention rather than exposure.
Formula
CPV = Total Cost / Number of ViewsTotal Cost is everything you spent on the video campaign. Number of Views is the count of qualifying views Google charged you for. So $50 in spend that earned 1,500 views works out to a CPV of about $0.03.
Why It Matters
CPV tells a local business whether video is an affordable way to get in front of customers. Many small businesses see CPVs of roughly $0.02 to $0.05 for skippable YouTube ads, so a few hundred dollars can buy thousands of views. Watching CPV over time also shows whether your video and targeting are resonating, since a rising CPV often means your ad is being shown to a less interested audience.
Common Misconception
A cheap CPV is not the same as cheap leads. A view is a watch, not a phone call or a booked job. You can pay two cents per view all day and still get zero customers if the video does not move people to act, so judge video ads by the calls and visits they drive, not by CPV alone.
FAQ
What counts as a view?
On skippable in-stream ads, you are usually charged when someone watches at least 30 seconds, watches the whole ad if it is shorter, or clicks to interact with it. Someone who skips after five seconds normally costs you nothing.
What is a good CPV for a small business?
For most local advertisers, a CPV between $0.02 and $0.05 is reasonable. Costs run higher for narrow audiences or premium placements like connected TV, and lower for broad local targeting.
How is CPV different from CPM?
CPV charges you per view of your video. CPM charges you per thousand times your ad is shown, whether or not anyone watches. CPV ties cost more closely to actual attention.
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