Promoted Video pricing change: Focusing on the value of views

Editor's Note: As of December 1st, 2011, you will start to see Promoted Videos referred to as TrueView in-search and TrueView in-display.

Promoted Videos have proven to be an effective and popular way for advertisers to drive traffic to video content on YouTube. This format allows you to promote videos on YouTube when users are searching for or watching videos. Until now, Promoted Videos have been priced on a cost-per-click (CPC) basis; similar to AdWords search ads, you were charged every time a user clicked on a Promoted Video ad.

Beginning on May 25th, we’re changing the pricing structure of this format to a cost-per-view (CPV) model, shifting the focus to actual viewership. This change means you’ll be charged only when a user clicks on a Promoted Video ad and starts to watch your video content. This pricing model ensures that your advertising costs are more closely connected to your goal of driving trackable video viewership.

How Bids Work

When you create your Promoted Video ad, you'll be asked to set a maximum CPV, which is the maximum amount you're willing to pay for a video view. Promoted Videos use the AdWords discounter to automatically reduce your costs. As always, we’ll only charge you one cent more than the next advertiser on the page competing for the same or similar keywords/placements, ensuring auction-driven efficiencies.

What You’ll See

As before, Promoted Video campaigns can be set up and managed right in AdWords or via ads.youtube.com. As of May 25th, billing terms from all Promoted Videos campaigns will officially convert from CPC to CPV and will be reflected in your advertising dashboards in both systems. If you’re using AdWords to purchase Promoted Videos on YouTube, you may continue to see mentions of CPCs in your campaign dashboard as we introduce additional CPV formats and adjust verbiage in the system.

Please visit the Help Center for more details and FAQs. Our hope is that this change in the pricing model aligns Promoted Videos more closely with your goals, driving the right results for your business.

Posted by Baljeet Singh, Senior Product Manager, YouTube