Online video consumption is growing fast… and so is ad spend
Advertisers across all categories are racing to take advantage of the growth in online video consumption. Video ad spend is expected to grow 30-40% from 2009 to 2013—more than double the pace of online ad spend growth and more than triple TV ad spend growth. However, marketers are still learning how to accurately measure and optimize video ad campaigns.
Do online video ads really work?
In short, the answer is a resounding yes. But getting to that answer is a bit more complicated. Online video offers a variety of ways to measure success, and with so many metrics available, success is really in the eye of the beholder. Some advertisers value ad interaction, while others may seek brand awareness or site engagement.
One thing is for sure. Marketers should look beyond click through rates to measure effectiveness. After a user watches a video ad, other actions like search queries, brand lift, and offline sales should also be taken into account.
Using a portfolio of metrics
In order gain a well-rounded perspective of video ad effectiveness, Yahoo! utilized a portfolio of 5 different metrics to study up to 200 video ad campaigns in the CPG, retail, and financial services categories. 600 million video ad impressions across Yahoo! properties were analyzed over 18 months in 2008 and 2009.
Video AdFX Portfolio of Metrics
- Ad Interaction: includes completion rate, interaction rate, and abandonment rate
- Search Influence: the increase in percent of searchers during the campaign period
- Site Engagement: a measure of page views per user on the advertiser’s site
- Brand Impact: the percent of users who recall advertiser brand without prompting
- Conversions: offline sales purchases
- 1 in 3 video ads generate a user interaction. 26% for 15-sec ads. 41% for 30-sec ads.
- 84% of video ads are viewed to completion. Completion rate of 15-second ads are 15% higher than 30-second ads, however the interaction rate is 30% lower.
- Video ads have 8x the click through rate of traditional display ads.
- Users exposed to video ads were 5x more likely to search on brand or campaign related terms during the video campaign vs. pre-campaign.
- 23% increase in site engagement during video campaign vs. pre-campaign.
- Online video ads increased unaided brand awareness by 40%. For CPG, the lift was 90%.
- Online video ads increased offline sales by 16% for a CPG foods campaign. 36% for a CPG over the counter campaign.
How to optimize your video ad campaign:
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- Always consider running concurrent Yahoo! Sponsored Search campaigns during your video ad campaign to increase awareness among searchers.
- For 30-sec ads, place messaging and branding early to minimize abandonment.
- Video advertising is a powerful tool to increase awareness and site engagement. Consider video ads to lift top of mind awareness of your brand and to drive traffic to your website.