Date created: Oct 12, 2022 • Last updated: Oct 12, 2022
What is Video Cost?
Video Cost is the sum of all marketing-related expenditures made on digital video advertisements. The most common marketing costs associated with video ads are Cost-Per-Click (CPC) and Cost-Per-Thousand-Impressions (CPM).
Video Cost Formula
How to calculate Video Cost
A video ad has a CPC of $10,000 and a CPM of $20,000. The sum of Video Cost for the ad is $30,000.
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How to visualize Video Cost?
Video Cost should always be tracked with other metrics, such as conversion and engagement rate, for the complete picture of your video ad's performance. You can visualize this metric with a summary chart on an ad performance dashboard.
Video Cost visualization example
vs previous period
ChartMeasuring Video Cost
More about Video Cost
Video advertisements can be a great way to engage with the target audience, draw attention to your business, and effectively communicate your message. While they are highly effective, these returns come at a cost. Video Cost is the sum of all marketing expenses related to your video ad.
These costs are calculated based on metrics that measure user engagement with your ad, indicating that the ad is reaching audiences. These metrics include Cost-Per-Click (CPC) and Cost-Per-Thousand-Impressions (CPM). While it is preferable that your Video Cost trends down over time, it makes sense for this number to be higher at certain times, such as during a promotion campaign for the launch of a new product. Track Video Cost alongside other video ad performance metrics such as Video Conversion Value to get a complete picture of your ad’s cost effectiveness.