Online Video Ads and Consumer Response

Online video ads are considered excellent for branding. But, the DoubleClick findings suggest that online video ads perform extremely well even on direct response metrics like click-through rate. While image ads have click-through rates of 0.1%. Online video ads in comparison have click-through rates as high as 0.74%. Spending on them is only 0.6% of their TV counterparts. Online video ads spending should see a surge if publishing networks can find a way of targeting videos contextually. US advertisers are expected to spend $775 million on online video ads this year.

Online video consumption has been increasing with 62% internet users viewing streaming video content once a week. Most of the consumers prefer watching streaming video content at home. Content most watched online include news clips (62%), movie trailers (38%) and music videos (34%). Users in the age group 18-34 are more likely to watch movies, TV Shows and user-generated content online. These users are also more likely to generate video content. In comparison users over 35 years are streaming more news clips, sports clips and user-generated content. 69% of internet users streaming online video content are above 35 years of age.

Consumers are 8% more likely to view to completion video ads that are 15 seconds in length compared to those that are 30 seconds long. However, the 30 second pre-roll video ad format slightly outperforms the 5- and 15- second ad formats in terms of CTR.

Consumers are more receptive to advertising appearing in informational videos as compared to entertainment videos. As consumers are already searching for content related to a product or service, they would be more receptive to relevant advertising. Content-rich videos websites have click-through rates of 0.72% in comparison to premium websites which have click-through rates of 0.35%. Consumers say they are more likely to view through ads (visit advertised sites without clicking on ads) than click-through.

References:

DoubleClick TouchPoints IV "How Digital Media Fit into Consumer Purchase Decisions" (White Paper)
Bi-Annual Online Video Study: First-Half 2007 vs. Second-Half 2006 "The Who, What, When And What Works of Online Video Consumption and Advertising", (Advertising.com)