What type of advertising expense does CPV involve?

Prepare for the IAB Digital Advertising Operations Certification (DAOC) Test. Utilize flashcards and multiple choice questions with explanations to enhance your readiness. Ensure success on your exam!

CPV, or Cost Per View, specifically refers to a pricing model in advertising where the advertiser pays for each time their video ad is viewed or interacted with by a user. This makes it particularly relevant in video advertising campaigns, where the performance is often measured not just by views but also by engagements, such as watching a certain portion of the video or clicking on it to interact further.

When focusing on video content, CPV allows advertisers to effectively gauge the level of engagement and interest from viewers. It ensures that they are only investing in ads that actually have reached an audience and where the content is being consumed, as opposed to merely being seen as passive impressions. Hence, the expense is directly tied to the effectiveness and reach of video ads, reinforcing the value in targeting video campaigns strategically.

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