Cost Per Second Viewed - The Best Metric for Video Advertising Formats

Rethinking Video Advertising: Why Cost Per Second Viewed Should Be the New Standard

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In the world of video advertising, not all impressions are created equal. For too long, brands have accepted the outdated model of paying on a CPM (Cost Per Thousand Impressions) basis, regardless of how much of the video ad is actually consumed by the viewer. But why should a brand pay the same amount for a user who watches their entire video advertisement and one who watches just one-third of it? These scenarios deliver radically different values, yet the industry continues to treat them as equal. It's time for a change. 

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The video advertising industry needs to evolve towards a more accurate and fair pricing model: Cost Per Second Viewed (CPSV). This approach would better reflect the true value that brands receive from their video content, aligning costs with actual viewer engagement. 

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The Problem with CPM in Video Advertising

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CPM has been a staple in advertising for years, but it's fundamentally flawed when applied to video. The model doesn't differentiate between viewers who watch an entire ad and those who barely start it. This is akin to the industry’s realization about viewability—where an ad placed below the fold (and not initially viewable, or not viewable at all) shouldn't cost the same as one prominently placed above the fold. The same principle should apply to video: pricing should reflect the true value derived from each second a viewer engages with the content.

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Why Cost Per Second Viewed Makes Sense

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1. True Engagement Measurement: CPSV accounts for the actual time a viewer spends watching an ad, offering a more precise measurement of engagement. Brands get a clearer picture of how effectively their content holds audience attention.

2. Better ROI: By paying based on actual viewer engagement, brands can ensure that their advertising dollars are spent more efficiently. They aren't overpaying for partial views, but rather investing in fully consumed content.

3. Fair Comparison Across Formats: CPSV allows for a standardized metric that can be used across various video formats. This makes it easier for advertisers to compare performance and efficacy across different types of video content.

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How Rembrand is Pioneering This Change

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At Rembrand, we deeply believe in aligning costs with the value brands receive. Our in-scene media solutions are designed to maximize on-screen time, ensuring brands get the most out of their advertising spend. While we currently charge on a CPM basis due to industry norms, we advocate for a shift towards CPSV as a more accurate and fair metric.

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The Path Forward

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Adopting CPSV will require a shift in the industry's mindset, but the benefits are clear. By ensuring that pricing is tied to actual viewer engagement, brands can make smarter, more effective investments in their video advertising. This shift will also harmonize the various video formats, providing a unified standard for measuring and comparing ad performance.

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As we continue to innovate with in-scene media, we urge the broader industry to consider adopting CPSV. This new metric not only promises better value for brands but also aligns the interests of advertisers, publishers, and viewers.

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Let’s embrace a future where video advertising truly reflects the value it delivers. At Rembrand, we're excited to lead the charge towards a more equitable and effective advertising landscape.

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