Is your established brand opting to air commercials for its products while your traditional cable or satellite television is running? Do you believe this method remains effective and that digital video advertising is not a consideration? If you are experiencing increased product adoption and viewership, you may be fortunate. However, the prevailing statistics suggest otherwise. Just looking at the USA, whereas traditional media consumption (TV, radio, newspapers, magazines, etc.) has reached an all-time low this year, time spent viewing digital media has climbed to over eight hours per day in 2023.
It's crystal clear that traditional TV advertising falls short as the best choice for brands looking to expand their customer base and boost brand recognition. Plus, even when the TV is playing in the background, we usually end up getting hooked on more interesting stuff on our smartphones. The savvy move is to pivot towards digital advertising. But the burning question is: how do you get it right, and which format should you go for?
In this article, we'll delve into the most popular video advertising formats, because video is the brilliant choice to seize your target audience's attention, as long as you make smart decisions and invest in top-notch ad content.
Why Digital Video Ads?
Before we delve into the key digital video ad formats, it's vital to highlight the inherent benefits of this medium. Video content, with its combination of sound, visuals, and motion, excels at capturing and holding viewer's attention. It not only encourages purchases but also provides an enjoyable experience. Furthermore, video content stands out as a unique way of sharing engaging stories and stirring genuine emotions. This ability helps in building a stronger connection with the audience, ultimately boosting sales.
It's worth noting that well-crafted video ads are more memorable. According to research, the typical user retains 95% of a message when it is watched, versus 10% when it is read. The mere fact that viewers have expressed a liking for your video ad will invariably result in heightened conversion rates. This leads to an expedited progression of viewers through the sales funnel, transitioning seamlessly from awareness to action.
Furthermore, digital video advertising offers flexibility to brands operating with limited ad budgets. Skippable and bumper ads, in particular, tend to be more budget-friendly compared to other formats. This accessibility enables startups and small local businesses to leverage modern advertising tools for customer attraction.
Let's incorporate some statistics to avoid being caught flat-footed. Online videos had a reported audience reach of 91.8% among all internet users worldwide in Q4 2022. During this time, music videos, comedies, and viral videos, as well as tutorial or how-to films, were the most widely seen forms of videos. This data further reinforces the notion that digital advertising is the top choice for businesses today. However, the statistics also indicate that many businesses cut costs on this tool for various reasons. A study by Statista found that over 40% of respondents cited a lack of funding for video production as their top obstacle to using videos for marketing. And in vain, because digital video ads are the future-proof choice.
The Most Popular Digital Video Ads
Instream & Outstream Video Ads
Instream Video Ads represent a highly favored ad format among today's brands. These ads strategically appear before, during, or after the videos you watch and can be either skippable or non-skippable. They're most commonly seen on platforms like YouTube, Netflix, and various streaming services.
Despite common misconceptions, these ads are far from random. They're carefully tailored to suit viewers by considering factors like demographics, income, search history, and location. For instance, if you're a young mom who recently searched for baby strollers online, you're likely to encounter ads for baby food or children's clothing brands. It's all about providing you with relevant content.
What makes In-Stream Video Ads a darling of advertisers? It's all about the myriad advantages they offer, ultimately leading to an impressive return on investment. These ads tend to command attention, particularly when they're non-skippable, seamlessly blending into the video content.
For advertisers striving to weave compelling narratives that associate their brand with captivating stories, the potential for attracting a multitude of new customers is substantial. Additionally, advertisers gain invaluable insights through robust analytics, including metrics like view count, view-through rate, and engagement data. It's the perfect recipe for advertising success.
You've likely come across outstream video ads while reading articles or scrolling through your social media feeds. They cleverly appear between paragraphs of text, and they're not directly related to the content you're reading. What's interesting is that these ads automatically start playing when you scroll down the page.
Even though this advertising type is relatively new, it's gaining popularity among brands. They're discovering that outstream video ads are a fresh and engaging way to connect with their audience in the midst of all the text-based content. According to 37% of brand experts, outstream spending will soon surpass instream.
Outstream video ads provide a real advantage for many brands. Firstly, you can display video ads on various platforms, not just streaming services. Imagine having your brand's ad right in the midst of a Forbes article or a BBC news story. Secondly, there's strong fraud protection. Outstream ads only play when a real person is on the page, so you won't have to worry about bots. Lastly, unlike instream ads, where video and text are quite different, advertisers can choose resources or pages that match their video's content. This ensures a positive and engaging reader experience. Your message blends seamlessly into the content, leaving a lasting impact.
Interactive Video Ads
Now, let's delve into something truly fascinating: interactive video ads. This represents a remarkable innovation in the realm of marketing and advertising, poised to transform your perspective of the world. Interactive ads enable brands to engage in a dynamic dialogue with you, significantly enhancing their potential to leave a lasting imprint on your memory. It's the most effective means to craft a distinctive experience for your target audience, boosting conversion rates and leaving your competitors in the dust. After including interactive video in their sales strategy, 87.7% of brand representatives saw an increase in their online sales.
In this type of ad, viewers can engage with the video by clicking on products or items they see while watching. When they click, they can get more information about the product, see its price, and even make a purchase directly from the video.
For instance, a fashion brand might create an interactive shoppable video showcasing a model wearing different outfits. Viewers can click on the clothing or accessories they like, and a pop-up window appears with details and the option to buy. It's an engaging way for viewers to explore products and make purchases without leaving the video. By the way, shoppable videos have the potential to raise viewer purchase intent by 9X.
Skippable Video Ads
There is a genre of video advertising that places paramount importance on respecting your personal boundaries and preferences. Can you guess what it is? As the name implies, "skippable in-stream ads" strike a balance, allowing advertisers to connect with a broad audience while granting viewers the option to skip the ads with minimal disruption to their video content.
This type of advertising is a frequent presence on platforms like YouTube and various streaming services. Viewers have the liberty to skip these ads after just 5 seconds, or they can opt to watch the ad in its entirety. Within these initial 5 seconds, brands must make a compelling case to entice viewers to continue, ultimately enhancing brand recognition. IPG claims that 65% of viewers skip video advertising, and they do so right away. Additionally, not all people do it in order to skip this specific advertisement. Up to 76% admitted that they regularly skip advertising out of habit. But if they don’t, chances are you nailed your ad!
Non-Skippable Video Ads
You've likely encountered the "video will play after ad" message in the lower right corner of your screen. When this message appears during an ad, it's a clear indicator that you're about to experience a non-skippable advertisement. Non-skippable video ads present a stark contrast to their skippable counterparts, as they do not offer viewers the option to skip and resume their video immediately. This approach provides brands with a distinct advantage: viewers are ensured complete exposure to the message. Consequently, the probability of persuading individuals to at least visit your website rises exponentially.
Native Video Ads
Native video ads represent a form of advertising deliberately crafted to seamlessly blend with the regular content on the hosting platform, ensuring a non-disruptive and harmonious user experience. These ads are thoughtfully designed to mirror the look and feel of the website or page they inhabit. This subtlety is aimed at preventing any intrusive disruptions and instead capturing the viewer's attention with helpful recommendations, aiding them in discovering what they seek.
For instance, when you read expert articles on websites such as Forbes, you'll frequently encounter paragraph widgets encouraging further reading by the same author or on related topics. These widgets often incorporate native video ads that propose relevant video content, all in a manner that aligns seamlessly with the site's style and layout.
These ads are also prevalent on social media platforms such as Facebook and Instagram, seamlessly integrating into your news feed. Frequently, you'll encounter video ads that align closely with your current interests. For instance, while viewing a clothing brand's account, you might stumble upon an ad for handbags from another brand. In this scenario, your attention is naturally drawn because it precisely caters to your ongoing quest for summer wardrobe updates.
The key advantage of such advertising lies in the exceptional user experience it offers. Rather than bombarding the viewer with irrelevant and intrusive ads that cannot be ignored, native video ads elegantly enhance their experience by considering their preferences. However, it's important to note that tailoring these ads for different platforms can be a time-intensive task.
Bumper Video Ads
Bumper video ads are the shortest among the ad types mentioned. They usually play before the main content and last no more than 6 seconds. Just like with skippable ads, brands need to put a lot of effort into fitting their main message into this short video. The goal is to grab the viewer's attention quickly and get them interested in the product or service being offered. Often, these brief videos announce the start of a sale or the launch of a completely new product on YouTube. These ads are often more cost-effective compared to longer video ads since they are charged based on impressions (CPM) rather than the more expensive pay-per-click (CPC) model.
Conclusion
Our community-driven, user-friendly programmatic platform is designed to make the process of connecting with the right advertising partners more accessible and efficient. We enable you to harness the full potential of these advertising formats, linking you with Supply-Side Platforms that actively seek out such demand.
If you're ready to start working with Axis today, the registration process is quick and straightforward, taking just 15 minutes. Once completed, you'll unlock a wealth of benefits, whether you operate as an SSP or DSP. Watch our brief video to discover what Axis has in store for you.