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Though the online video ad load is still not as heavy as on traditional TV, it remains one of the fastest-growing online ad formats—and an effective one to boot, research suggests.
Digital advertising solutions provider MediaMind analyzed the performance of a variety of display ad formats served in the US during June. In-stream video ads, including video ad-serving template (VAST) and video player-ad interface definition (VPAID) formats, performed dramatically better than both standard banners and banners involving rich media, with or without video.
In-stream VAST ads, which had the highest clickthrough rates of any format, showed a long-term increase in clicks since the beginning of 2011. In Q1 of that year, VAST clickthrough rates were 0.77%, rising to 1.3% in Q2 and 1.77% by Q4. Though Q2 of this year showed a slight dip compared with Q1 (down from 3.09% to 3.05%), performance is now holding steadily higher than for other ad formats.
VPAID ads had the highest completion rate, and VAST ads were not far behind. The completion rate for rich media ads with video was several points lower.
MediaMind explained the lower clickthrough rates on VPAID ads vs. VAST ads by noting that the units tend to focus on branding over direct response, that the ads themselves are interactive, meaning clicks are not always necessary, and the ads often appear in long-form video content where clicking would be disruptive to the experience. The firm noted that despite the lower clickthrough rate, interaction rates were high on VPAID ads, at 9.57%.
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