Top Category Spenders on Online Video Ads

The CPG category was the leading online video ad spender on the YuMe network in Q2 2012, according to data released in September 2012 by YuMe. The vertical accounted for almost 1 in 4 dollars spent on video ads, with the health and pharma category not far behind, at 19%. Beyond these top 2 spenders, there was a significant drop-off to the next tier: retail (11%); consumer electronics (9%); telecom (8%); and financial services (8%).

CPG’s position at the top of online video ad spending is nothing new. In 2011, the category accounted for 24% of all online video ad dollars spent on the YuMe network for the year, far ahead of health and pharma (16%), while in Q1 2012, it was also the top spender (25%), edging out health and pharma (23%).

Marketers Targeted 25-54-Year-Olds, Women

Data from the YuMe report indicates that marketers had a fairly clear age bracket target in mind for their online video ads in Q2. 22% of total request for proposal (RFP) volume for the quarter was for the 25-54 group, up from 16% in Q1. By comparison, the 18-49 group accounted for 12% of the RFP volume, only slightly changed from Q1 (11%).

Marketers also showed a preference for targeting women. Females aged 25-54 made up 16% of total RFP volume. And while spending on non-gender specific campaigns accounted for 74% of RFP volume in Q2, spending on females was far larger than on males (19% vs. 7%).

Breaking down the top female demographics requested by marketers, the study finds 25-54-year-olds were the most requested group (44% share of female-targeted RFPs), followed by the 18-49 (26%), 25-49 (11%) and 35-54 (11%) groups.

It was a different story for men, though. The top male demographic requested was the 18-49 bracket (39%), with the 18-34 group in second, at 20%. The 18-34 bracket only made up 4% of requests on the female end.

Men Had Higher Average Completion Rate

Despite women being more targeted than men, it was actually men who showed the higher propensity to watch a pre-roll video ad in Q2. The average pre-roll completion rate (regardless of ad length) for men was 71%, compared to women’s 67%. This is a reversal from Q1, when women had an average completion rate of 68%, compared to men’s 62%.

The overall completion rate for pre-rolls in Q2 was 69%, only slightly up from 68% in Q1. In Q2, pre-rolls accounted for 76% of ads served, down markedly from 84% in Q1. That difference was made up by YuMe Ads, which swelled from 9% of ads served to 13%, and mobile impressions, which grew from 4% to 7%. The remaining 3% of ads served were shared among banner (1%) and connected TV (2%) – both unchanged from Q1.

Completion Rates and Ad Length Negatively Correlated

Somewhat unsurprisingly, the study shows that the longer the video ad, the less likely a viewer would complete it. The average video completion rate for 15-second ads was 76%. That dropped to 65% for 30-second ads, and 40% for ads longer than 30 seconds. Still, each of those figures was an improvement from ad completion rates in Q1.

Overall, 55% of ads served in Q2 were 30 seconds in length, with the next-highest share belonging to 15-second ads (42%). Ads longer than 30 seconds made up only 3% of the mix, though that was up from 0.7% the previous quarter.

By age, the average video completion rate was highest among persons aged 35-64 (73%), ahead of persons aged 35-54 (72%), suggesting that those aged 55-64 have a higher completion rate than their younger counterparts.-Marketing Charts

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