2 Making the most of your cost per view (CPV)
Average cost per view is the average amount you pay for a view of your video ad, and it fluctuates based on factors such as ad length, creative quality, targeting and auction dynamics. CPV is a valuable signal about the competitiveness of your ad. By tracking and adjusting it, you’ll deliver your message more efficiently.
Are you paying more for views than you wanted or expected? Are you seeing CPVs increase over time?
Rising CPVs could be a sign of creative fatigue if your ad has been live for a couple of weeks. Rising CPVs can also be a sign of increased pressure in the auctions that you compete in to win.
Conversely, declining CPVs could indicate that there's less competition in the market and that you may have a chance to gain some views at a lower cost.
Tips to meet your CPV goals
Adjust your bids
Consider changing your bids on your TrueView video discovery ads to increase the likelihood of your ads showing to interested viewers.
In general, because viewers who choose to watch your video discovery ad reflect a desire to engage with your brand, it may make sense for you to increase your bids on these formats.
Conversely, if you’re more interested in views, traffic to your website, or increasing awareness of your brand, consider increasing your bid on the in-stream format to increase the likelihood of viewers seeing at least part of your ad.
Bids have the most direct link to CPVs in that you'll never pay a higher CPV than your maximum bid. However, they act only as a ceiling, and so are only one way to make CPV adjustments.
True value bids
The most effective use of bids is to bid your true value for the view that you’re buying (much as you would with a click in Google Search). As a view can drive far more activity beyond what you pay for directly, the best way to define true CPV value is to asses paid views, owned views (views of content that you own), and earned views (views from shares).
It’s also worth noting that, with TrueView ads, there can be improved engagement and recall for ads that haven’t even been seen for the full 30 seconds, meaning you don’t pay, but still accrue value.
Once your campaign has been up and running for a bit, you’ll start to see which ad formats and ad groups perform best. If you want to increase your reach or engagement on your ads, you might want to bid a bit more aggressively.
Expand your targeting
Expanding targeting will allow AdWords to identify auctions where your ads and bids are more competitive, and so can reduce your campaign’s overall average CPV. You may still find a valuable audience at a lower CPV by exploring broader targets. Remember, the TrueView format itself acts as a targeting filter where you pay only for engaged viewers who choose to watch your ad.
Restricting your targeting will lead to higher competition, manifested in higher CPVs — unless you're already near your maximum bid, in which case you'll simply stop winning auctions and end up with unspent budget.
Relax other campaign-level restrictions
Actions like turning off accelerated delivery, platform targeting or adjusting your ad rotation settings may help drive a higher view rate and lower CPV.
Improve your ads
Because strong ads drive good view rates, they can often impact the CPV. As view rates rise, CPVs fall because the auction values relevant ads that audiences will enjoy as shown by their willingness to view-through.