How are in-stream display ads priced?

In-stream display ads, like most digital advertising, are typically priced using a few different models:

1. **Cost Per Mille (CPM)**: In this model, advertisers pay a fixed rate per thousand impressions of their ad. This means that the advertiser pays a certain amount every time their ad is displayed 1,000 times, regardless of how many clicks or actions result from those impressions.

2. **Cost Per Click (CPC)**: With CPC pricing, advertisers pay each time someone clicks on their ad. This model is performance-based, as advertisers only pay for actual clicks, not just impressions.

3. **Cost Per View (CPV)**: CPV pricing is often used for video ads and in-stream ads on platforms like YouTube. Advertisers pay each time their video ad is viewed by a user. The view might be counted after a certain duration of the ad is watched or if the user interacts with the ad in some way, like clicking on it or hovering over it.

4. **Cost Per Engagement (CPE)**: This model is similar to CPV but includes interactions beyond just views, such as likes, shares, or comments on social media platforms.

5. **Cost Per Acquisition (CPA)**: In this model, advertisers pay based on specific actions or acquisitions resulting from their ad, such as a sale, a sign-up, or a download.

The pricing model chosen depends on various factors, including the advertising platform, the goals of the advertising campaign, the target audience, and the desired level of risk and control for the advertiser.

In-stream display ads are typically priced using one of the following methods:

1. **Cost per mille (CPM)**: This pricing model charges advertisers for every 1,000 ad impressions served. The cost per mille can vary depending on factors like ad format, targeting, and competition for ad space.

2. **Cost per view (CPV)**: In this pricing model, advertisers pay for each view of their in-stream display ad. A view is typically defined as when a viewer watches the ad for a certain duration (e.g., 30 seconds) or interacts with the ad (e.g., clicks on a call-to-action).

3. **Cost per click (CPC)**: This pricing model charges advertisers when a viewer clicks on their in-stream display ad. The cost per click can vary depending on factors like ad position, targeting, and competition for ad space.

4. **Cost per engagement (CPE)**: This pricing model charges advertisers when a viewer engages with their in-stream display ad, such as expanding a collapsed ad or interacting with an element within the ad.

5. **Flat rate or sponsorship**: In some cases, advertisers may negotiate a fixed rate for a specific ad placement or sponsorship. This pricing model is less common for in-stream display ads but can be used for premium ad placements or high-profile campaigns.

When choosing a pricing model, advertisers should consider their campaign goals, budget, and target audience. For example, if an advertiser wants to increase brand awareness, a CPM or sponsorship model might be more suitable. On the other hand, if an advertiser wants to drive conversions or website traffic, a CPC or CPV model might be more appropriate.

It's important to note that the pricing of in-stream display ads can also be influenced by factors like ad inventory, demand, and competition. Advertisers should carefully evaluate their options and consider working with reputable ad networks or platforms to ensure they are getting the best value for their investment.