The vast majority of video ads served on the Internet are not watched to completion. Under the IAB’s ‘best practices’, digital networks may charge for a ‘view’ after only 2-seconds. Facebook, for example, charges after just 3-seconds; further, of the ads that clear Facebook’s 3-second payment threshold, only 12% will be watched to completion. Meaning that 88% of the video commercials advertisers paid Facebook to deliver were never seen in their entirety, with most having been interrupted after only a few seconds – but not before Facebook registered a charge to your budget.
Obviously, the cost to guarantee a viewer watches only a few seconds of your ad (via CPM pricing) will be less than the cost to guarantee they watch a full 30-seconds (via CPCV pricing). Accordingly, while CPM rates are lower than CPCV on an absolute basis, the vastly higher ROI of CPCV pricing is unmistakable: Facebook only guarantees 10% of your ad (i.e., 3-seconds) will be seen when using CPM pricing models. Can your 30-second ad generate meaningful message absorption and retention in just 3-seconds? CPCV guarantees a viewer ingests 100% of your message, or you don’t pay.
DSN’s pricing model eliminates risk, while introducing higher accuracy to your campaign’s ROI projections.