One of the forms of payment for video advertising on Google Ads is CPV. This index helps measure the effectiveness of the advertising campaign as well as evaluate the quality of video content. To optimize costs and increase customer interaction on advertising videos, you need to know how to optimize Google Ads CPV. If you want to optimize CPV effectively, you need to understand how they work and have a suitable advertising strategy. In this article, Optimal Agency will help you better understand CPV and how to optimize it effectively.
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What is CPV?
It is an abbreviation for Cost Per View, meaning the cost per view of an advertising video. This index is applied to advertising campaigns on YouTube under Google’s advertising system. With this advertising fee model on YouTube, advertisers need to pay every time someone watches an advertising video on this platform.
When users watch at least 30 seconds of a video ad or interact with the ad, you will be charged. Advertisers are only charged when users take an action. This is more effective than paying for each ad impression. If users have decided to watch the ad video, they are more likely to be interested in the product, and service as well as interact with the ad, avoiding wasting the budget.
The CPV advertising model is considered effective when advertisers only have to pay when someone views the ad, helping to save costs and increase conversion rates. Moreover, the CPV model allows advertisers to set a maximum bid for each ad view. From there, advertisers can control costs and optimize advertising effectiveness on YouTube. This is also how to run Youtube ads that is being applied to the maximum and brings high efficiency.
CPV calculation formula
Before learning about how to optimize Google Ads CPV, let’s explore how to calculate this index first. The cost of advertising for each view of a Google video ad is calculated according to the formula:
CPV = Advertising Cost / Video Views
Advertisers only need to pay for each ad view when viewers watch a certain amount of time, usually 30 seconds. This is how views are calculated for video ads longer than 30 seconds. Or viewers watch the entire video ad for videos shorter than 30 seconds.
In addition, you will be charged when viewers watch and interact with the video ad such as clicking on overlays, cards, banners, etc. containing the link you placed. If viewers do not watch the entire video ad with a duration of less than 30 seconds or do not watch the full 30 seconds of a video longer than 30 seconds, you will not be charged.
You can apply this formula to calculate the bid you need to set for the ad. In which, the maximum CPV is the highest amount you are willing to pay for a view. It is used for all ads in an ad group. In addition, you can set your ad bids based on the actual CPV calculated at a different, smaller price.
Why optimize CPV in Google Ads?
CPV is an important indicator to measure the effectiveness and cost of online video advertising campaigns. Through it, marketers can clearly determine the cost per view of an advertising video as well as understand and accurately measure campaign performance. Reasons to Optimize CPV in Google Ads:
Save advertising costs
Optimizing CPV not only helps save advertising costs but also brings higher efficiency in investing advertising budgets. By minimizing the cost per view, you can maximize your resources effectively and expand the scope of your advertising campaign. By setting a maximum CPV, you can ensure that you do not exceed your budget and control costs effectively.
Increase brand awareness
Optimizing ads, and increasing the number of views of video ads will help bring ads to a large number of viewers. The CPV advertising model helps increase brand awareness and increase the ability of customers to remember the business brand.
Improve advertising performance
Based on the data and information collected from the CPV campaign, you can optimize ads. Through that, you can adjust the content, target audience, and CPV to achieve maximum performance. Optimizing CPV will help improve advertising performance with interaction rates and increase the chance of converting into real customers.
Increase conversion rates
You can optimize CPV by providing convincing and attractive advertising content to viewers. Then, interested viewers will tend to interact positively. Thereby increasing the ability to convert into desired actions such as purchasing, registering, or participating in events.
How to optimize Google Ads CPV effectively
In video advertising campaigns on Google, to achieve the most optimal CPV as well as improve advertising performance, you should apply the following methods:
Choosing the right advertising campaign goal
The goal is a very important factor when setting up a Google Ads campaign that you need to pay attention to. Because it shows what results you want to achieve after the advertising campaign. Choosing the right goal is essential when optimizing CPV. When setting the right goal, you will know the target audience and build effective advertising content.
Target the right target audience
Based on the campaign goal, you need to outline the portrait of the target customer to aim to increase the ability to interact and the conversion rate. Targeting the ad to the right audience with high potential interest helps increase the number of views and reduce CPV. You can use targeting options in Google Ads including geographic location, interests and behaviors, customer lists, related keywords and topics, etc.
Choose the right bidding strategy
For Google Ads, you can choose between different bidding strategies to achieve the desired CPV target. You can choose the vCPM or CPV target bidding strategy to control CPV better and optimize your advertising budget. With the vCPM strategy, you only have to pay for the ad impressions to the target customers. The CPV target bidding strategy allows you to set the desired CPV target and Google will automatically adjust the bid to achieve that target.
Create attractive advertising content
Content is the factor that attracts and retains customers to stay and watch the entire video ad. Therefore, you need to optimize the video content and advertising images. To achieve that, you need to remember when creating advertising content that emphasizes the benefits of products and services and the reasons why customers should choose you instead of your competitors.
In addition to the title, description, and hashtags, the video thumbnail is an important factor in increasing clicks. However, the thumbnail needs to include the product you are advertising. If you want them to click on the website or subscribe to the channel, use a clear and convincing call to action.
Optimize the landing page
An attractive and convincing landing page will increase the conversion rate from ad views to the desired action (purchase, registration, download, …). By optimizing the landing page, you can increase the value of each ad view and reduce CPV. When optimizing the landing page, you can use attractive content and images. At the same time, make sure the landing page loads quickly and is optimized for mobile devices. Add a clear and visible call to action to the landing page.
Track and Analyze Effectiveness
If you want your Google video advertising campaign to be as effective as possible, you need to regularly monitor and analyze the performance of your campaign through CPV. By analyzing data on CPV, views, conversion rates, and other metrics, you can see the weaknesses that need to be improved. Based on the analysis, you can adjust your advertising strategy, change the content, and adjust the target audience. At the same time, test different bidding strategies to optimize CPV and improve the effectiveness of your advertising campaign.
Use remarketing
With the data you collect through the process of monitoring and measuring the effectiveness of your advertising campaign. You can then deploy a remarketing strategy to target people who have interacted with your ads before. By using remarketing to optimize CPV on Google Ads, you can increase the ability to reconnect with people who need your products and services, increase conversion rates, and optimize costs.
The article has provided detailed information about CPV and how to optimize Google Ads CPV effectively. However, to achieve the best advertising results, you should combine many other payment methods to measure and optimize your advertising campaign, maximizing conversion rates.
Please refer to:
- Instructions for depositing money to run ads on Facebook
- Banned keywords on Google when running ads that need attention
- Do you know how to multiply Facebook ad groups?
Frequently asked questions
CPV is not always the best advertising model for every business. Because the effectiveness of CPV largely depends on the goal of the advertising campaign. If the business’s goal is to increase brand awareness or interaction, CPV is the top choice. However, if the goal is to promote specific actions such as increasing clicks or conversions, CPC or CPA will be more suitable.
According to many studies, the cost per view of Google ads with in-stream ads when users watch 30 seconds of the ad video or the entire duration if the video is shorter than 30 seconds is $0.25. The average CPV rate on Google’s TrueView ads on YouTube is from $0.1 – $0.3.
