Online video advertising losing effectiveness

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online_video_small.jpgADOTAS — Are video ads waning in influence already or are they seeking the right level of engagement?

In a recent poll by Knowledge Network, 80 percent of online network TV viewers would prefer to view ads in exchange for unpaid video content, up from 67 percent in 2006. According to eMarketer, this includes viewing preroll ads, the most popular video ad format currently available. In 2008, 7 percentage points more network TV viewers said they watched videos with preroll ads than did in 2006.

But action resulting from playing ads has declined between 2006 and 2008. Nine percentage points fewer viewers, 17 percent, forwarded ads to others. In addition, three percentage points fewer, 25 percent, went to an advertiser’s Website to see an ad.

So the question is if online video ads need to get better to be more effective? I remember more the ones that forced me to interact with them then the ones that just played in front of me like TV. Maybe that’s the answer. You need to actively engage the ad to get back to view the video.

— Express your opinion, comment below.

2 COMMENTS

  1. I think the first order of business is to define more specifically what is meant by “action resulting from playing ads”. If the resulting action is a click-through then it returns to the argument that measuring campaign success based on the number of people who click on an ad is as meaningless as measuring a store’s success based on the number of people who walk through the door each day. Obviously, there needs to be some meaningful point of conversion metrics which can be used to determine if the campaign works by directly driving consumers to take actions which meet set KPIs. If the goals are met then the campaign is a winner, if not then it isn’t. But what determines success is based on what the advertiser really needs to have happen.

  2. It’s the economy! Consumers are cutting back so their interest level is low and they resist temptaion by not clicking. It’s the same reason why mall traffic is down.

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