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You Are Probably Investing in Digital Video, But Are You Doing it Well?

By Lon Otremba, CEO and Director at Bidtellect
Mar 16, 2018

Lon Otremba Headshot

By Lon Otremba
CEO of Bidtellect
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According to eMarketer, digital video ad spend will be nearly 18% of total digital ad spend in both the US and UK by 2022. Marketers are investing, but are they directing their investments toward the right video formats?  

This quarter, Bidtellect’s Q4 2017 Native Intelligence Report, took a deeper look at video formats’ performance and engagement metrics. We analyzed video trends on our platform year over year to see how the trends have evolved over the course of the year and how marketers can learn from these trends to make smarter, more effective video investments.

We’ve seen significant growth in the number of brands using in-content video year over year.

Marketers are using in-content video and it’s working

2017 was a year of significant change for digital advertising and its key stakeholders. One of the most important emergences was the industry-wide movement toward ad formats that provide a better experience for the end user.

RELATED: How to Master Native Advertising in the Video Marketing Era

This quarter’s report found that brands continue to invest heavily in more organic, engaging video ad types. We’ve seen significant growth in the number of brands using in-content video year over year, and more specifically increased investment and utilization.

We expect this trend to continue in 2018 as brands shift digital advertising strategies away from disruptive formats, like banners and pre-roll video, toward consumer-friendly ones that provide high-quality user experiences.

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Performance metrics show better consumer engagement with the autoplay formats.

Shift from click to play to autoplay

Digging a bit deeper into in-content video formats, year-over-year we found that video budgets moved away from user-initiated formats toward autoplay formats such as outstream.

Performance metrics show better consumer engagement with the autoplay formats as this inventory is highly viewable and integrated into the consumer journey.

RELATED: The Dos and Don'ts of Branded Videos

From the quarterly report data, and through the experience of our advertiser partners, we have found that in-content video is highly engaging, preferred by the consumer and ultimately performs better for campaigns’ objectives, including completion rate.

One of the highest cited reasons that consumers install ad blockers is because of ads that block content and long video ads before short videos.

In-content provides a better user experience

Comparatively, pre-roll video disrupts the consumer experience, lacks real user engagement, often leaves the viewer with a negative perspective on the brand and is usually ignored.  

In fact, according to an IAB Ad Blocking Report, one of the highest cited reasons that consumers install ad blockers is because of ads that block content and long video ads before short videos.

RELATED: 3 Ways to Engage Your Audience with Advertiser Funded Programmes

Bidtellect’s quarterly report is not the only data to support consumer’s preference for outstream. In a study by research firm Applause, Yieldmo found that 73% of U.S. consumers preferred outstream video ads over pre-roll. The study found that consumers also label pre-roll ads as “frustrating” (73%) and “disruptive” (66%).

In addition, a Nielsen study conducted by ShareThrough found that consumers were more likely to have a negative opinion about a brand after being exposed to pre-roll creative than Native video creative.

Brands need to be consistently providing consumers with valuable, entertaining and high-quality video content.

How can marketers ensure smarter video strategies?

In conclusion, video has solidified itself as a premier way for marketers to engage with consumers and create a positive experience with their brand.

RELATED: 3 Examples Proving That Branded Videos Can be Both Simple and Smart

Due to the naturally immersive nature of video content, it’s more important than other formats to ensure relevant, organic and valuable content experiences for the end user. Here are some key tips to remember:

  • Invest significantly and regularly.  One-off campaigns are not sufficient. Brands need to be consistently providing consumers with valuable, entertaining and high-quality video content.
  • In terms of in-content formats, autoplay video is preferred by consumers over click-to-play. This is optimal for both brand and consumer. Autoplay provides brands with confidence in their investments because it is highly viewable and offers consumers better content experiences.
  • Pre-roll leaves a bad taste with the consumer. The industry is moving away from interruptive, non-organic advertising. And brands that don’t adapt to this shift risk negatively impacting their consumer relationships.

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Story by Lon Otremba

Lon Otremba joined Bidtellect as its CEO and Director in January 2014. He leads all aspects of the Company’s efforts, working closely with the management team and the Company’s board of directors. With over 20 years’ experience in media, Otremba is a veteran operating executive and adviser in the Internet publishing, mobile, and broadcast music industries and a well-known pioneer in interactive media. Bidtellect was shortlisted for a Native Advertising Award as Native Advertising Platform/Network of the Year and won a silver medal.

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