Define CPV and CPC and explain how they are used in evaluating online advertising.

• A. CPV is cost per view; CPC is cost per click; used to measure efficiency.
• B. CPV is cost per visit; CPC is cost per click; used to allocate budget.
• C. CPV is cost per view; CPC is cost per conversion; used for performance reporting.
• D. CPV stands for cost per venture; CPC stands for cost per campaign; used to track influencers.

Answer: (A)

Understanding how CPV and CPC function helps you evaluate online advertising by looking at the cost of actions that show engagement. CPV stands for cost per view, which is what you pay each time someone views your video ad (often when they meet a defined viewing threshold). CPC stands for cost per click, which is what you pay when a user clicks your ad to visit your site or landing page. These metrics let you judge efficiency by measuring how much you spend to achieve those engagement actions, making it easier to compare campaigns, adjust bids, and optimize targeting or creative. For example, a video campaign with a low CPV is cost-effective for views, while a campaign with a low CPC is efficient at driving traffic through clicks. The definitions and their use for measuring efficiency align in the stated option.