You set up a Google Video campaign with a consideration goal and cost-per-view bidding (CPV).
How will your max CPV compare to your actual CPV?
- Max CPV is often less than actual CPV because it’s a reserve buy.
- Actual CPV is often less than max CPV because it’s auction bidding.
- Max CPV is often less than actual CPV because it’s auction bidding.
- Actual CPV is often less than max CPV because it’s a reserve buy.
Explanation:
In the context of Google Video Ads, CPV or Cost-Per-View bidding allows advertisers to specify the maximum amount they’re willing to pay for a video view or other video interactions. This maximum bid is referred to as Max CPV.
The way the auction system works is that you’re not always charged your maximum bid. Instead, you pay just enough to outbid the next highest bidder. So, if the competition for a particular auction is low, you might end up paying significantly less than your max CPV. As a result, the actual CPV (the amount you actually pay for a view) is often less than the max CPV you set, because of the dynamics of auction bidding.