A pricing model in digital advertising, vCPM (Cost per Viewable Thousand Impressions) ensures advertisers pay only for impressions that meet industry standards for viewability. Unlike traditional CPM (Cost per Thousand Impressions), which charges for all impressions regardless of visibility, vCPM focuses on impressions that are likely to be seen by users.
How vCPM Works
vCPM pricing is based on the number of viewable impressions an ad receives. Advertisers set a target vCPM bid and are charged only when their ad achieves viewable impressions. This model is particularly useful for branding and awareness campaigns where maximizing ad visibility to a relevant audience is the primary goal.
- Viewable impressions: Impressions that meet industry standards for viewability, ensuring the ad is displayed in a way likely to be seen by the user.
- Target vCPM bid: The amount an advertiser is willing to pay for 1,000 viewable impressions.
Comparison with CPM
CPM (Cost per Thousand Impressions) is a commonly used measurement in advertising, representing the cost an advertiser pays for one thousand views or impressions of an advertisement. It is calculated by dividing the cost of an advertising placement by the number of impressions (expressed in thousands) that it generates. CPM is useful for comparing the relative efficiency of various advertising opportunities or media.
- CPM (Cost per Thousand Impressions): Charges for all impressions, whether seen or not.
- vCPM (Cost per Viewable Thousand Impressions): Charges only for impressions that meet viewability standards.
Table: CPM vs. vCPM
| Metric | CPM | vCPM |
| Basis | All impressions | Viewable impressions only |
| Pricing | Cost per 1,000 impressions | Cost per 1,000 viewable impressions |
| Use Case | General advertising | Branding and awareness campaigns |
