What is Viewability?
Viewability is an online advertising metric that indicates the number of impressions that are actually “seen” by users. Viewability was created to help advertiser understand and minimize advertising wastage. Understanding the Viewability percentage of a campaign allows the advertiser to optimize towards impressions that are “seen” vs ad impressions “not seen”, thus making the campaign more effective.
Why does Viewability matter?
To put it simply, if an individual advertisement cannot be seen, then the ad is unable to build brand equity, impact or influence the user. Advertisers that don’t measure and/or optimize to a Viewability metric in some way shape or form have no way to ensure their advertising is being seen. Think of any impressions that are not viewable as being wasted. Viewability minimizes Advertising Wastage.
What is vCPM ?
vCPM is a metric used to represent the cost of viewable impressions. vCPM stands for Viewable Cost–Per–Thousand impressions and is sometimes referred to as Viewable CPM.
To calculate vCPM, use the following simple formula
vCPM = CPM / viewability rate.
One of the challenges of Viewability is the lack of consistency across the industry on what a Viewable Impression actually is. There are two aspects, the first being the actual definition of what “In-View” means and the other aspect is the technology or measurement of the viewable impression.
There are two main Viewability Definitions that the majority of advertisers agree on, the MRC Viewability Standard and the GroupM Viewability Standard, both of which are detailed below.