Video Retargeting Outperforms Traditional Retargeting with Average Industry Increases of 74% in CTR and 49% in ROI

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Treepodia research: Dynamic video retargeting campaigns significantly increase click-through-rates (CTR), return-on-investment (ROI), and view rates, across several industries.

Treepodia announced the results of their research and analysis on dynamic video retargeting after spending the last year breaking down the numbers from their clients’ campaigns.

With dramatic results, jewelry&gifts saw an increase of 100% in ROI and CTR.Home&kitchen saw a 39% increase in CTR and a 33% rise in ROI. The furniture industry saw a CTR increase of 86% and an ROI increase of 34%.

The overall increase across industries was 74% in CTR, and the ROI increased by 49%.

Dynamic video retargeting uses video to retarget viewers with products or services they have previously viewed.

The study had two goals:

1) Compare the CTR and ROI across various industries and platforms to measure the contribution of video in retargeting campaigns:

The company predicted that video ads would bring outstanding results, but they wanted to quantify their observations. In doing so, they strategized on what top indicators would best reveal the answer.

“We chose CTR and ROI as our main indicators, as CTR is widely used as a KPI in advertising, and ROI obviously every marketer follows,” explains Sarah Nochimowski, Treepodia’s Marketing Director.

The industries studied included home&kitchen, furniture, jewelry&gifts and financial institutions.

The research methodology was to measure the selected KPIs on regular retargeting campaigns and video retargeting campaigns. The results are based on millions of impressions.

Looking at the bottom line: The percentages increased significantly when video retargeting was used compared with static retargeting.

The overall increase in CTR was 74% and the ROI increased by 49%.

Each industry saw significant increases in both CTR and ROI, with jewelry&gifts, and furniture showing the greatest improvements.

Jewelry&gifts saw CTR & ROI increases of 100%. The furniture industry saw a CTR increase of 86% and an ROI increase of 34%.

“Among industries, when looking at the results of Jewelry&gifts, it makes sense: they sell high-ticket items, yet there isn’t a ‘need’ to try them. There are also benefits from the visual effect of the video, which is similar for the furniture industry,” Nochimowski explains.

Home&kitchen saw a 39% increase in CTR and a 33% rise in ROI, which is also not surprising since this industry is highly influenced by its visual appeal.

Treepodia also studied their clients’ campaigns both in AdWords and Facebook and the results showed some competitive edge for video retargeting on Facebook.

2) Document the increase in YouTube pre-roll view rates when using dynamic video retargeting vs. generic remarking pre-roll:

Dynamic retargeting provides personalized, tailored ads by displaying the ex-act product/service the visitor previously viewed. Generic retargeting runs the same video ad to all, focused more on branding than on personalization.

There was a 47% increase in view rates when using dynamic retargeting for YouTube pre-rolls compared with generic retargeting pre-rolls. View rate is important for brand image, which is the additional value of video retargeting, on the top of the better hard sell and the other KPI improvements.

“What we see from the results of the study is that all industries showed positive results, so DVR can work for anyone selling something online,” Nochimowski adds.

What is Dynamic Video Retargeting?

Retargeting enables advertisers to use the same ad to retarget all customers who viewed their products. Dynamic retargeting retargets users with the same products they have previously viewed. Dynamic video retargeting combines all of these options in the most engaging way through the power of video.

Each visitor is retargeted with a powerful video ad tailored to each person's specific interest. The tailored video ads are served as video banners in AdWords, Facebook News Feed, and pre-rolls in YouTube. They act as great accelerators for mid-funnel advertising, which is barely handled by advertisers. It contributes a lot to the branding, and simultaneously triggers performance.

About Treepodia Ltd:

Treepodia specializes in video personalization by producing millions of customized, engaging creative ad campaigns for pre-rolls, dynamic video banners, product videos and loyalty videos, which enable companies of all sizes (including Sears, Office Depot and eBay) to attract more clients. Through automation and A/B testing, Treepodia produces a variety of creative options and promptly tracks campaigns for performance in a streamlined and cost-effective process.    

For more information, visit us at http://www.treepodia.com.
Contact: Sarah Nochimowski sarahn(at)treepodia(dot)com

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Sarah Nochimowski
Treepodia
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since: 08/2009
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