The formula to calculate the Cost Per View (CPV) is:
\[ CPV = \frac{TC}{TV} \]
Where:
To convert this value into a cost per 1000 views (CPTV), multiply the result by 1000:
\[ CPTV = CPV \times 1000 \]
Cost per view, commonly thought of as cost per one thousand views, is a term used in advertising to describe the cost it takes for an ad campaign (typically in video format) to show one view to an audience. The reason this is commonly thought of as cost per thousand views is that the cost for just one view is very minimal.
Consider an example where:
Using the formula to calculate the Cost Per View:
\[ CPV = \frac{500}{20000} = 0.025 \text{ per view} \]
To convert this to Cost Per Thousand Views (CPTV):
\[ CPTV = 0.025 \times 1000 = 25 \text{ per 1000 views} \]
This means that the cost per view for this example is $0.025 per view, and the cost per thousand views is $25.