A video ad incurs a CPC charge of $10,000 and a CPM charge of $20,000. The total Video Cost for the campaign is $30,000.
Video Cost
Last updated: May 27, 2026
What is Video Cost?
Video Cost is the sum of all marketing expenditures on digital video advertisements. The metric typically includes Cost-Per-Click (CPC) and Cost-Per-Thousand-Impressions (CPM) charges tied to a campaign.
Video Cost Formula
How to calculate Video Cost
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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
Summary Chart
Video Cost
Chart
Measuring Video CostMore about Video Cost
Video advertisements can be highly effective for engaging target audiences, building brand awareness, and communicating a message with impact. But those returns come at a real price, and understanding what drives that price is essential for managing budgets and improving campaign efficiency. Video Cost is calculated using engagement-based metrics that signal whether your ad is reaching audiences. The two most common are Cost-Per-Click (CPC) and Cost-Per-Thousand-Impressions (CPM). Tracking these components together gives a complete view of overall video spend. While a downward trend in Video Cost is generally favourable, higher spend is expected during specific periods, such as a product launch or seasonal promotion. To assess cost effectiveness, track Video Cost alongside performance metrics such as Video Conversion Value.
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