While online video ad success is often measured by click-through rates, research from Vindico has argued that
completion rates are actually a more important indicator of ad effectiveness. Results from a new study by TubeMogul support that position:
according to the report, viewers exposed to a pre-roll video ad demonstrated
higher brand awareness and message association than a control group that
did not watch the ad – and the lift was significantly higher among
viewers who completed the ad.
In terms of brand lift among the overall group exposed to an ad
(compared to the control group that was not), the report finds a 3.6%
lift in awareness, a marginal 0.1% increase in favorability, a 8.3%
boost in message association, and a 2.4% gain in purchase intent or
consideration.
Among those who completed the video ad, though, the lift in brand
awareness almost doubled (from 3.5% to 6.9%), while the lift in message
association more than doubled (from 8.3% to 20.5%).
TubeMogul’s report notes that “for the purposes of this research,
“lift” is defined as the absolute difference (subtraction) between the
percent of correct answers of exposed viewers (people who saw the ad)
and a control group (people that did not see the ad). “Correct” answers
are defined as the answer that the brand desires and indicates a
positive perception of the brand by the survey taker.”
Pre-Roll Completion Rates Steady
So if completion rates are so important, where do they stand? In Q3,
video ads on Tier 1 sites (from well-recognized publishers like news
outlets, cable providers and sports broadcasters) saw an 84.9%
completion rate, up from 81.8% in the first half of the year. While the
average completion rate for ads on Tier 2 sites dropped (from 76.9% in
H1 to 70.7% in Q3), it remained steady for ads on Tier 3 and 4 sites (at
82.2% in Q3).
Pre-Roll Inventory Grows; CPMs Drop Slightly
TubeMogul’s latest quarterly research report shows that the volume of
pre-roll ads available for real-time bidding has increased steadily
during the year, by 7.3% per month through September. That growth has
been most rapid in the past 3 months, averaging 323.6 million
impressions per day.
Probably as a result of that growth, cost-per-thousand (CPM) for
pre-roll video ads has dropped, down from $8.83 in H1 to $8.18 in Q3.
Other Findings:
- Video ads had the greatest lift in purchase intent for the
electronics/computer vertical (10.9%), followed by online services
(4.8%), entertainment (2.3%), and CPG (2.2%).
- Before dipping in Q3, CPMs grew by 2.5% per month through the first half of the year.
About the Data: Data for the report comes from top brand
campaigns run through TubeMogul’s media buying platform in the U.S. in
the third quarter, spanning hundreds of millions of impressions across
standard pre-roll video ads. Brand lift data comes from TubeMogul’s
BrandSights survey technology, which launched in September and now
counts over 75,000 survey respondents.
CPMs represent average clearing prices for pre-roll ads on thousands
of sites available from the leading private and public exchanges,
spanning billions of bids. As such, they reflect the raw cost (i.e. what
goes directly to the publisher), before TubeMogul’s transparent cost is
added, or fees from rich media, 3rd-party targeting, brand surveys or
other partners
.-MarketingCharts
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