The beauty of digital video is its ability to target and track an ad’s performance data in real time. But before you can use this data to understand the value of your video ad inventory, it would probably be a good idea to understand the lingo, but that’s not always easy with so many acronyms flying around.
So to help navigate the fairly untouched jungle of digital video ad measurement, with the help of Wibbitz we’ve compiled a list of the most common verbiage used to determine a video ad’s worth.
Video Ad Impression– Every time video ad starts playing on a user’s screen. When it comes to video ads, “impressions” and “views” can be used interchangeably.
Viewable Video Ad Impression- According to MRC and IAB guidelines, when at least 50% of the video ad’s pixels are in view and at least 2 continuous seconds of the video ad is played.
Quartiles– Metric that represents the percentage of a video ad that was watched continuously at normal speed. First quartile=25%, second quartile=50%, third quartile=75%, fourth quartile=100% (completion).
Fill Rate- The number of video ad opportunities successfully filled divided by the total number of ad opportunities.
VCR (Video Ad Completion Rate)– The percentage of all video ads that are played to completion. Also known as VTR (View Through Rate).
CPM (Cost Per Thousand Impressions)– The amount that an advertiser will pay every 1,000 times their in-stream video ad is displayed. Also known as CPI (Cost Per Impression) or CPV (Cost Per View).
VCPM (Cost Per 1,000 Viewable Impressions)– Same as above, but only if the impressions are considered viewable based upon MRC and IAB viewability guidelines. Also known as CPVI (Cost Per Viewable Impression) or VCPV (Viewable Cost Per View).
CPCV (Cost Per Completed View)- The amount that an advertiser will pay every time their video ad is played to completion (reaches 100% quartile).
CPA (Cost Per Acquisition/Action)- The amount that an advertiser will pay every time a visitor takes a specifically defined action with a video ad (clicks on a CTA, makes a purchase, engages with the overlay unit, etc.)
CPP (Cost Per Point)– The amount that an advertiser will pay for each rating point of a targeted audience demographic that a video advertising campaign successfully reaches.
TRP (Target Rating Point)- The percentage of an advertiser’s target audience that a video ad or campaign reaches.
GRP (Gross Rating Point)– The number of times a video ad is served, multiplied by the percentage of the target audience it reaches each time. Used to compare the advertising strength of various media vehicles.
OTP (On Target Percentage)– The percentage of the total video ad campaign’s defined goals that are reached.
To learn more about advertising in the age of digital video check out Wibbitz Digital Video Advertising Guide.