New VINDICO Insights Report Analyzes 30 Billion Online Video Ad Impressions to Reveal Surprising Findings

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Leading Video Ad Technology Company Finds Viewers Who Watch Video Ads to Completion Are Far More Valuable to Marketers than Those Who Click Through

A new Insights Report released today by VINDICO, the leading ad management platform for video, saw huge growth in online video ads in 2011 with a 134 percent increase in digital ad volume. Further, data found click-through rate, widely recognized as the industry standard for conversion, to be “King of False Positives.” Instead, “completers” – or those who watch a video ad to completion— are far more crucial to the success of a digital video advertising campaign.

VINDICO’S first comprehensive research report on the digital video advertising market was based on the analysis of 30 billion video ad impressions delivered by VINDICO for brand advertisers across diverse industries in 2010 and 2011. The report found that of viewers who navigated beyond the brands’ landing pages, 96 percent had previously completed the brands’ video ads without clicking it. That contrasted strongly with clickers; only 4 percent of deeper brand page traffic came from users who clicked the ads.

“People who click on a video ad often do so just to ‘make the ad go away,’ but those who watch an ad through to the end are highly likely to engage with the brand,” said Matt Timothy, president of VINDICO. “Advertisers need to seriously reconsider their view of click-throughs as some kind of golden metric of ROI in video advertising. Our data indicates that video ads based solely on click-through rates are inaccurately measuring the impact of their campaigns. Completion rate is a far more accurate indicator of success.”

The impact of these findings is critical for brands as agencies look to improve the performance of their large-scale video advertising programs. In 2012, more than half of all marketers will have deployed digital video campaigns – up from 20 percent last year. Spending on digital video campaigns will rise 40 percent over 2011 to reach $3.1 billion in the U.S. and is expected to reach more than $7 billion by 2015.

Key findings of the report include:

  •     Ad-Served Impressions Rise: In 2011, marketers pushed for ad-serving to be used on their digital video ad campaigns. From 2010 to 2011, VINDICO saw a 92 percent increase in ad-served impressions, with ad serving making up nearly half of all total impressions delivered. Using first- and third-party tags, ad-served impressions include detailed tracking metrics so advertisers have more insights into and control over their campaigns.
  •     New Video Ad Types Gain Steam: While 90 percent of all video ads in 2011 were standard ad types – often repurposed TV creative – advertisers are beginning to see value in alternatives available in the digital space. In 2010, 1 percent of video ads were custom video environments; such as overlays, billboards and tiles, and 1 percent were interactive, with little money going to mobile video ads. In 2011, 6 percent of ads were custom video environments, 2 percent were interactive, and 2 percent were mobile.
  •     Short-Form Videos Deliver High Click-through Rates: Ads placed in short-form video content had an average click-through rate of 1.31 percent, while ads placed in longer-form content had an average .83 percent click-through rate.

VINDICO delivers one third of all online video ads in the United States. The company provides video advertising management solutions to over 200 brands through their leading agency groups such as GroupM, Havas, IPG, Publicis and Omnicom. The VINDICO solution reduces complexity for advertisers by providing an efficient and reliable way to serve video ads across multiple networks.

Download the full report at vindicogroup.com/products/analytics.

About VINDICO
VINDICO is the first ad management platform dedicated exclusively to video and sits at the center of the digital video ad eco-system, serving more than one-third of all digital video ads. VINDICO’s video ad management platform gives brands and agencies a single solution to serve, track and measure all of their digital video ad activity. Since 2006, VINDICO has been the gold standard in digital video platforms and works with top media agencies and their clients. Through continued technology innovation, VINDICO also helps companies increase engagement with their customers and boost results of their video ad investments. For more information, please visit http://www.vindicogroup.com or follow us on twitter at @vindico_group.

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Melody Serafino
mserafino@groupsjr.com
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