Despite in-stream video advertisements becoming more popular than mobile, rich media and banner ads, marketers should also take note of what content, categories and websites generate the highest ROI for these ads, according to a new report from PointRoll.
The report, "2012 Benchmark Report: In-Stream Video Benchmarks" focuses on in-stream video ads, or advertisements that are displayed in videos. It looks briefly how these ads compare to other ad formats and also breaks down the most successful areas, such as the kind of website that had the best click-through rate for in-stream ads.
Know Your Website
In-stream ads are available in both standard and interactive format that allows viewers to choose what happens next in the video, but they aren't only used on one type of website. These sites can include search engines, kids and family websites, advertising and marketing, sports and recreation and entertainment -- although some of these are more popular than others.
The type of website with the highest click-through rate for in-stream video campaigns, according to the report, is kids and family with 1.87 percent, followed by home and garden at 1.36 percent and news at 0.78 percent. B2B websites and advertising/marketing came in at 0.43 percent and 0.53 percent respectively.
The video completion rates are categorized in quarters at 25, 50, 75 and 100 percent. In the 100 percent completion category, the highest rate was business and finance at 77 percent, while the lowest was advertising and marketing at 60.7 percent. As for videos that viewers only watched half of, the highest was once again business and finance, followed closely by portals and search engines. The website with the lowest percent in this category was music and streaming media.
Know Your Content
The type of content or verticals that are presented in these videos can include retail, non-profit organizations, travel and tourism, and computers and technology. Travel and tourism held a hefty lead with 1.47 percent, well above the second place category of food and beverage manufacturers at 1.06 percent.
As for video completion rates, the restaurants and food service category had the highest 100 percent video completion rate with 81.6 percent, which was only a few percentage points above food and beverage manufacturers at 78.8 percent. As for videos that only a quarter completion rate, the results were closer together, as for example the highest being restaurants and food services at 92.3 percent, which was followed very closely by tourism at 92.1 percent.
The only group to fall below 50 percent in each of the four categories was retail which averaged at the bottom of each list in the 30 to 40 percent range.
A Stream of Success
When compared with the other types of advertisements such as rich media, mobile and banner, in-stream ads are more successful and more engaging. For example, the click-through rate of an in-stream advertising is 0.62 percent, which is far ahead of the second place mobile at 0.15, rich media at 0.14 percent and banner or standard at 0.10 percent. An in-stream video is also more engaging as it has a 5.68 percent interaction rate, which is almost two percent ahead of rich media and about five percent above mobile advertisements.
With these results, the report shows where marketers should focus their marketing strategy and what parts of in-stream advertisements need the most attention to draw better revenue for companies.