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BizReport : Advertising : May 18, 2011

Is CPV a solution for online advertisers?

Earlier this month, Facebook announced plans to include Cost Per View (CPV) to their advertiser options. CPV basically means advertiser pay per view, and that view is obtained by 'paying' consumers to watch ads. Good for the advertiser because they know an ad was actually seen, but is it enough?

by Kristina Knight

adgenesis.jpgOn the one hand, advertisers will know that their ad was seen within the Facebook frame. On the other hand, is that 'view' an indication of purchase intent or even engagement with the brand? Not really, according to one expert. He says the program would be more beneficial to advertisers if the social network took CPV one step further, asking consumers specific questions about purchase intent, likes/dislikes and other demographic information. These questions would prove a consumer not only streamed a video ad, for example, but that they paid attention to the ad.

"Time is consumers' most precious commodity, and [this program] gives them more worth," said Michael Kelley, CMO with AdGenesis. "The plus side is [Facebook] is evolving the advertising relationship and starting in areas where core brands will find value. But, consumers at still get around some parts of the system - they could not view ads, for example. With our system, the consumer has to prove they viewed an ad, that they paid attention, to get the reward."

Through AdGenesis' CPV option, consumers are also polled about their reaction to an ad or product, their purchase intent and other options, giving advertisers more feedback on what is or is not working within a campaign.

According to one recent forecast, half of video ads will include CPV options by 2015.

Tags: AdGenesis, advertising, advertising trends, cost per view, online advertising

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