What is vCPM? A Manual for Publishers
When determining the worth of digital advertising, viewability is one of the most important factors. Previously, publishers could simply make money by placing advertisements on their websites without taking into account how many people saw those advertisements.
Viewable impressions are now highly valued by advertisers in digital advertising. Publishers should be aware of how impression costs are calculated.
Do you want to know how to get the most out of vCPM? Don’t stress. This guide will show you how vCPM works and help you make more money.
What is viewability exactly?
A view is defined by the Interactive Advertising Bureau (IAB) using the following criteria:
The ad should be at least 50% visible on the user’s screen and should be displayed for at least one second.
The percentage of the advertisement that is visible for one second should be at least 30% for ads larger than 242,5 pixels.
At a minimum, users should be able to watch more than half of video ads for more than one second.
An advertisement must meet those requirements in order to be counted as having been “viewed,” as measured by the 1,000 views it receives.
Everything You Need to Know About vCPM
In order to bid on vCPM, an advertiser needs to know the actual vCPM as well as the percentage of the ad that is seen and the number of viewable impressions. The total is reduced by any portion of the advertisement that is not visible on screen (i.e., outside the screen).
Above the fold ads.
The section of your website that users see first when they visit any page is referred to as “above the fold.” For instance, before the user scrolls down, the header, text, images, video, and advertisements appear.
Because all of the ads appear above the fold, more people will see them if you place them there. However, due to bounce rates, the average ad viewability is only 68%.
Below the fold ads.
The viewability of an advertisement drops by 40% when it is placed below the fold. As a result, it’s best to place it below the fold and choose a position that works best for you. Heatmaps can help you determine which ad placement is most effective for your website visitors.
What advantages does vCPM offer?
Viewability is a key performance indicator (KPI) that advertisers use to evaluate the impressions inventory’s value. Nowadays, advertisers demand viewability of 100 percent, which is impossible due to the fact that some users will bounce.
Since vCPM does not have a non-viewable percentage like CPM does, advertisers save money.
Since advertisers bid higher on viewable impressions, including vCPM into your programmatic strategy may be advantageous for publishers.
Furthermore, publishers must increase their vCPM to maximize revenue because Google only pays for ads that can be viewed.
CPM vs. vCPM
The cost per thousand impressions, or CPM, is its abbreviation. In this instance, advertisers ought to pay for each thousand impressions served, regardless of whether the advertisement is viewed.
The fact that viewability is not taken into account by CPM is advantageous for publishers. The same amount is paid to a publisher with 80% viewability and 20% viewability.
vCPM takes into account ads that the user can see. As a result, when the ad’s viewability decreases, vCPM rises. An advertiser must buy five times as many impressions from a publisher with 20% viewability. However, advertisers can purchase one impression if the publisher’s viewability is greater than 50%.
How to Determine vCPM.
The cost per thousand viewable impressions is referred to as VCPM. Not just the ads served, but also the ads placed, advertisers are paid based on 1000 viewable impressions. As a result, only ads that are active and visible on the user’s screen will be paid for by advertisers. As a result, the campaign’s actual cost is determined by its viewability.
What Is an Excessive vCPM?
The industry standard for a good viewability rate is greater than 68%. However, keep in mind that the vCPM is proportional to the viewability. Depending on your viewability rate, having a high vCPM can either discourage or encourage advertisers.
Advertisers may be more likely to bid on impressions with high viewability and low vCPM.
What can you do to boost your vCPM?
Viewability metrics for ads are crucial to vCPM. Publishers can use these pointers to boost vCPM and improve viewability.
- Improve the performance of your ads by experimenting with various placements.
- Utilize heatmaps to compare the data from the various placements to determine which ones are more effective.
- Your website’s user experience will be harmed if it is overloaded with advertisements.
- Test out various ad formats. Google, for instance, states that vertical advertisements perform better than horizontal ones.