Video grows as a marketing tool

A new study by MediaMind collects the results of its comparative analysis of advertising based on in-stream videos. The report reveals an increase in the click rate, interaction and viewing time.

MediaMind, a DG division specialized in integrated online advertising solutions, has presented a new study on the effectiveness of In-Stream videos in digital advertising, a tool whose growing consumption through different devices has made it become an essential element of marketing.

MediaMind's study, based on more than 3 billion video impressions served worldwide throughout the first half of 2012, reveals that consumers pay more attention to ads that incorporate online video. Specifically, the click-through rate (CTR) on online videos is 27.4 times higher than that of a traditional banner and almost 12 times higher than that of rich media ads.

To carry out the study, the common metrics available for each video format have been taken into account. Specifically, MediaMind has calculated the CTR value and completion rates of fully viewed videos for VAST (Video Ad Serving Template) and VPAID (Video Player-Ad Interface Definition), both standards established by the IAB. Additionally, consumer interaction rates with ads were analyzed using VPAID.

Seneca Mudd, director of Industry Services and chair of the IAB Digital Video Committee, draws attention to "the growing importance that marketers and advertising agencies place on video interactivity, and this study explains why. As fundamental pillars of the IAB Video Suite, the VAST and VPAID standards enable the marketing community to increase real engagement with vital creative experiences through video messages."

The results also reveal that overall, users were 10% more likely to watch interactive video ads (VPAID) to the end than a rich media ad with video. This shows that interactive video advertising has a greater impact than standard video.

VPAID's overall engagement rate was 9.57%, meaning nearly one in ten users interacted with an ad while the video was playing, for example, alongside a game. Engagement rates reached highs of over 500% (5 interactions per ad per campaign) in some of the highest impact campaigns analyzed.

Ricky Liversidge, Chief Marketing Officer at DG, notes, "As video increasingly sets the tone, marketers will have the freedom to simply focus on tailoring their video ad creative to any platform – TV, online or mobile. This global benchmark data, drawn from a huge number of impressions, is tangible proof that consumers are extremely interested in learning about brands through online video."