The most significant differentiator between video ad formats on YouTube is whether ads are skippable (can be skipped after 5 seconds) or nonskippable (must be watched in their entirety). This has the greatest impact on the user experience on the platform. Skippable or nonskippable, advertisers need their video ad creative to be compelling.
CTV’s premium and non-skippable ad environment result in high completion rates, and viewers find these ads more relevant and informative, which in turn drives action. Magnite’s research found that 70% of survey respondents took an average of two actions after seeing a digital video political ad. These actions include visiting a candidate’s website and watching more videos on a candidate.
Lastly, OTT video services are exploding. We expect that the average US adult will watch 42.6 minutes of subscription-based OTT video per day in 2020 across all devices. Many of these services, such as Hulu and Vudu, have shoppable ads. Although CTV is the prime location for viewing OTT videos, the interactivity of these ads works best in mobile environments.