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A growing number of advertisers are using promoted videos as a means of driving traffic to video content on YouTube. So far ,this feature was charged on a Cost-Per-Click (CPC) basis, but soon these ads will be charged on a Cost-Per-View (CPV) basis.

In the past, advertisers were charged their average cost per click amount every time a user clicked on a promoted video ad, irrespective of whether or not the user then actually viewed the video. This system obviously was not ideal for advertisers and is therefore due to be changed.

From the 25th of May, promoted video ads on YouTube will be charged on a CPV basis, which means that the advertiser will only be charged when a user actually begins to view the promoted video. This change will benefit advertisers as the number of times they will be charged for clicks could be reduced, giving them a better return on investment.

Promoted video ads on a YouTube search results page

Now, when a new promoted video campaign is created, advertisers will be required to set a maximum CPV, which represents the maximum amount they are willing to pay per view of the promoted video.

AdWords will continue to use the old format of charging only one cent more than the next advertiser who is competing for the same slot on the page, with similar keywords. Advertisers can continue to set up the campaigns in AdWords or at as before. From the 25th of this month, the billing terms for all the video campaigns will officially be converted from the CPC model to the CPV model.

Advertisers may continue to see the CPC terms in their campaign for some time as additional CPV reporting formats are introduced gradually.