Online video is the fastest growing format for online advertising.  According to the Internet Advertising Bureau (IAB) online video advertising grew a huge 46% in 2012, now accounting for £160 million of the UK’s digital ad spend.

One reason why there are more video ads is the growing market for tablets, which has become the preferred device for online shoppers combining the convenience of mobility with an interactive touch screen. Mobile video is expected to rise by a whopping 366% this year, after seeing over 300% growth in 2011 and over 500% growth in 2012. UK mobile video ad spend will continue, more than doubling annually through 2015.

In-stream is the most popular format for video ads.  Right now more than 85% of all video ads are 15-30 second non-interactive pre-roll videos, primarily because the majority of video inventory is included with TV upfront buys by advertisers and agencies. These spots are repurposed after-thoughts used to extend the reach of 15-30 second TV spots. These spots are also the cheapest route to run in-stream, and because most agencies still site-serve their video, vanilla 15-30 second video is all they’re capable of.

Although some consumers will see in-stream video as a necessary evil and will look desperately for a way to “skip this ad”, there are some advertisers that have found the secret sauce to encourage viewers to click.  These spots are enjoying success in the UK.  Research by Exponential found that consumers in the U.K. are 60 per cent more likely to interact with these pre-rolls than their counterparts around the world and 60 per cent of all in-stream ads are viewed all the way through.

There are advertisers out there taking advantage of what the in-stream space can offer to create great user experiences. They’re putting a little more in to the relationship and sweetening the deal for consumers. And guess what? Turns out everybody wins.

Getting beyond the pre-roll isn’t rocket science, either. Numerous studies have shown that what motivates people to interact with an online ad is relevance; “is the ad relevant to me?” is always near the top of the list.

So the first step toward rebalancing the consumer/advertiser video relationship is to make the experience more relevant for the user, using targeting, re-targeting and optimisation and dynamic video to get relevant and effective messages to the right video viewers.

Some sophisticated agencies (TCAA is one example) take this strategy to the hilt by pooling data from all their channels (Email, search, display, video) to steer the right message to the right user across all their digital campaigns – not just video. This unified approach virtually eliminates the problem of a user seeing the same 15-second video ad eight times in a row. Using targeting and optimisation creates a more relevant experience for the user, minimises wasted impressions and prevents creative burnout. That’s good for users and for advertisers.

Another way advertisers can step up their symbiotic game is by looking at other formats beyond generic pre-roll. All IAB VAST and VPAID players allow you to run non-linear ads, creating an affordable but user-friendly experience. Non-linear is an overlay to the video content the user is watching, allowing the user to opt-in if they like the content in the ad.

Remember this ad?

Regardless of if you use these products or if you saw this play during your video, you probably clicked to see what happened and were rewarded

In-stream advertising offers an advantage of mindset over in-page display. The viewer is already engaged with the video player, so if you provide a compelling call to action, you have a better chance of successful engagement than in any other format. In fact, DG MediaMind research shows that interactive video ads are by far the best performing ads in all ad categories we serve. The advertisers taking this route are creating a better user experience and gaining performance and ROI. And often making a video interactive is simple using elements you already have, like images, other videos, Twitter etc.

In-stream advertising is growing by about 40% each year, and so is the user base. Advertisers must adapt to ensure they are keeping up their side of the bargain, or else risk losing the huge audience and opportunities the unique video relationship offers.

Site-served, untargeted, non-interactive pre-roll video formats simply won’t cut it anymore. Relevant content, non-intrusive formats and compelling creative that appeals to audiences will also drive ad performance, so everybody wins. Consumers view with pleasure and the advertisers get the targeted exposure they need.

Deann Harvey

Deann Harvey

Contributor


Deann Harvey is VP EMEA, DG MediaMind.