Earlier this month, Magna and the IPG Media Lab released a study suggesting that interactive video ads significantly outperform those that are non-interactive on metrics like brand recall, often beating other video formats by 10 percentage points or more. But advertisers aren’t just using interactive video for brand building. These days, more advertisers are looking to interactive video campaigns to help achieve a variety of goals beyond awareness such as purchase intent. In fact, interactive video is likely to see increased adoption by advertisers across a range of industries. Is it simply because of the high performance numbers? Or are there other factors at play? Here are a few reasons why interactive video looks likely to play a bigger role in ad campaigns moving forward.
It can help close the sale
Perhaps the biggest potential benefit of interactive video is its ability to help push viewers further down the “purchase funnel.” Magna and the IPG Media Lab’s study also noted in their findings that interactive video was associated with a 9x increase in purchase intent. That’s due to the flexibility of interactive video ad creative units, which now allow advertisers to add all kinds of engagement features like scrolling carousels and “shop now” clickable buttons. These features help marketers more closely replicate the real-world shopping experience of browsing for products at a physical store, which many believe will help to boost online sales.
It makes campaigns more real-time and measurable
Video has transformed the advertising experience, not just online but for TV as well. In today’s environment, advertisers can get real-time data about their campaign performance, allowing them to fine-tune messaging and creative based on up-to-the-minute results. This capability is especially important for interactive video ad creative, which heavily utilizes interactive metrics like click-through rate to gauge a campaign’s success. As more advertisers realize the benefits of this real-time test-and-adjust approach, it’s likely we’ll see continued adoption of interactive video over other non-interactive ad options.
It’s essential for the mobile era
Mobile advertising is now embraced by most marketers. In fact, many forecasters believe mobile advertising will account for more than half of all digital spending in the US in 2017. The growth of mobile is also a good sign for interactive video, as mobile devices will enable a wealth of new ad features that will help to further engage mobile consumers in the future. Think about the location sensor and touch screen now available on every mobile device: these inputs enable new forms of interactive video advertising that allow consumers to swipe, tap, or pinch ad unit creative, or even receive more targeted creative based on their location.
Interactive video has numerous benefits for advertisers. Not only is it the perfect complement for mobile devices, the format has also demonstrated an ability to drive a variety of business goals like purchase intent. Should advertisers invest more of their budgets in interactive video moving forward? While it’s difficult to say for certain, all the signs suggest we’ll be seeing more of this increasingly popular format on consumer screens in the future.