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3 Key Findings in Video Ad Performance, Q1-Q3 2016, plus Infographic

Spending on video advertising continues to grow at double-digit rates. But given this flurry of buying and selling, it’s sometimes difficult for agencies and clients to keep track of performance and identify larger trends. How well are video ads performing with consumers? What larger trends are shaping the video buying landscape? Each quarter Extreme Reach collects the latest performance data from video ad campaigns served. Here are some of the biggest themes that have emerged during the first three quarters of 2016.

Cross-Device Video Campaigns Are Growing in Importance
For many marketers, the proliferation of screens and devices has complicated the video buying landscape. But it has also offered a wealth of opportunities. Extreme Reach data on video ad engagement across a variety of devices including smartphones, tablets, PCs and connected TVs, shows there isn’t one screen that’s clearly better than the others. Click-through rates for video ads served between Q1 and Q3 2016 fluctuated between .2% and .33% for tablets, .37% and .52% for mobile devices and .36% and .43% for desktop PCs. The lack of significant difference between these devices indicates that brands and agencies should think about using all potential screens when making buying decisions.

Direct-sold Video Inventory Continues to Outperform Inventory purchased from Media Aggregators
The relatively high media costs charged for video makes it appealing for buyers to look for more affordable inventory from media aggregators such as exchanges and networks. However, consistent with Extreme Reach performance data from 2015, premium video campaigns continue to be worth the extra money. Examining video performance factors in Q3 2013: 60% of video served on premium sites was Viewable compared to 53% of video served via media aggregators; 24% of video served on premium sites was served in small players (those <400×300 WxH pixels), compared to 32% of video served via media aggregators; 11% of video served on premium sites was served in-banner (300×250 WxH pixels), compared to 25% of video served via media aggregators.

Campaign Accountability and Measurement is Getting More Important
Ad campaign accountability has always been an important concern for advertisers, but it’s getting even more so in light of industry news in recent months. When considering video campaign performance factors like viewability and viewable completion rates, ads served by Extreme Reach saw a consistent upward improvement throughout the first three quarters of 2016. For example, the average viewability rate jumped from 47% in Q1 2016 to 55% in Q3 2016. The same was true of the average viewable completion rate, which grew from 51% in Q1 to 60% in Q3 2016. The continued upward trend suggests advertisers are demanding publishers do more to make sure ads are seen by consumers.

The graphic below includes selected highlights from our complete findings.