If you're a marketer looking for ways to optimize your ad performance, you might have come across the term vCPM. But what is it, exactly? In this post, we'll break down vCPM and answer the most common questions about it.
vCPM stands for viewable cost per mille. It's a metric used to measure the cost of display advertising based on how many times the ad is viewed by the user. This means that with vCPM, advertisers only pay for ad impressions that are deemed viewable, i.e., those that meet specific criteria for visibility.
vCPM is calculated as the cost per thousand viewable impressions (mille means thousand in Latin). To determine whether an impression is viewable or not, most ad platforms use industry standards such as the Media Rating Council's (MRC) guidelines. These standards state that an ad impression is viewable when at least 50% of its pixels are in view for at least one second.
vCPM can be used with several ad formats, including display ads, in-stream video ads, mobile ads, and native ads. However, it's worth noting that some publishers and ad networks may choose not to support vCPM.
Because vCPM only charges for viewable impressions, it can help advertisers reduce wasted spend on non-viewable impressions. However, because viewability rates can vary depending on factors such as ad placement and user behavior, vCPM rates may be higher than other pricing models like CPM (cost per thousand impressions).
Some performance metrics associated with vCPM include viewability rate (the percentage of impressions that meet the viewability criteria), CTR (click-through rate), and engagement rate (the percentage of users who interact with the ad after viewing it).
Whether vCPM is a good fit for your campaign depends on several factors, such as your budget, ad format, and campaign objectives. It's worth discussing with your ad platform or agency to determine whether vCPM is the right choice for you.
