MediaMind Issues Report on the State of In-Stream Video Ads

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ADOTAS – Earlier today, at the IAB (Interactive Advertising Bureau) Digital Video Marketplace conference in New York City, multi-service ad  solutions provider MediaMind presented a report detailing 10 arguments for the potency of in-stream — that’s pre-roll and mid-roll — video advertising, including continued growth in the market and high rates of engagement. While there’s been a lot of talk about how much people by and large seize the opportunity to skip pre-roll ads and proceed straight to content if they possibly can, MediaMind’s report argued that “the longer you see the band in front of you, the more likely you’ll remember it,” and pointed out that ad-skipping is nowhere near universal.

Some of the stats: The average click-through rate for in-stream video (2.15 percent) is nearly 2,000 percent higher than that of standard banner ads (0.009 percent). Ad-skipping aside, 70 percent of in-stream ads play all the way through and 75 percent play at least two the three-quarters mark. Ads produced specifically for the internet are “more effective” for driving purchase intent, raising brand favorability and inspiring the user to play the ad all the way through (per research from Dynamic Logic and TubeMogul) than ads plucked straight from TV and dropped on the web, even though they’re typically 90-plus seconds long, in contrast to the standard 15 or 30 seconds for traditional TV ads. In the U.S., 37 million households own an internet-connected device (per Forrester research), up from fewer than 25 million in 2010, and Forrester expects 50 percent of households will be viewing content on internet-connected machines by 2016. Right now, men in the U.S. spend an average of five hours, and women an average of four hours, per month watching video on PCs; while men spend an average of four hours and 20 minutes, and women an average of three hours and 37 minutes, watching video on mobile devices. Fifty-seven percent of internet users view online videos at least weekly, and 21 percent did so daily, while in 2009 43 percent viewed online video at least weekly and 12 percent daily. In 2012, 63 percent of advertisers intend to take advantage of in-stream video ads, and from 2011 to 2016, video ad spend is expected to climb from $2 billion to $5.4 billion. In that space, 31 percent of advertisers in North America pay from $11 to $15, on average, for video CPM, and 50 percent pay $11 to $25.

MediaMind’s report, “10 Facts You Should Know about Video Advertising,” is downloadable here, and it incorporated research conducted by Forrester, Dynamic Logic, TubeMogul, Frank N. Magid Associates, Nielsen, Digiday and Adap.tv.

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