This article describes the cost-per-view (CPV) and fixed-price (views) accounting models available in Mercury Media for campaign video planning.
For dependent KPIs, e.g. Impressions, clicks or conversions can be calculated, the media planner must specify forecast values.
Click-through rate (CTR)
The CTR is used in the billing model CPV to calculate the expected clicks.
Clicks = Impressions * CTR
Conversion Rate (CR)
The CR is used in the billing model CPV to calculate the expected conversions.
Conversions = Clicks * Conversion Rate
Conversions = Impressions * CTR * CR
View-through rate (VTR)
The VTR is used in the billing model CPV to calculate the expected impressions. Each call to the video is considered an impression, and the VTR allows you to forecast how many impressions are needed for a completed view.
Views = Impressions * VTR
Impressions = Views / VTR
For cost-per-view, a volume settlement model and a fixed-price pricing model are available.
With the billing model CPV, every completed view is billed.
Cost (gross) = Completed Views * CPV
Fixed Price Views
With the billing model Fixed Price Views, a flat rate is billed.
Cost (gross) = price (gross)
In order to show expected performance, a forecast volume and a guarantee volume can be specified (as in other fixed-price models). The basis for the calculation of forecast KPIs is always calculated with the forecast volume. If no forecast volume is defined, the guaranteed volume is used instead for the calculations.
In addition to the "Completed Views", there is also the option to view the individual quartiles for reporting purposes (25%, 50%, 75%, 100%). These are also given via adserver matching if configured accordingly.