Warc Blog

Interactive video ads take off

16 September 2013
NEW YORK: The level of interactive video advertising is growing, alongside the boom in online video generally as brands from less obvious categories, such as pharmaceutical and CPG, start to utilise this channel.

Tal Chalozin, co-founder of Innovid, a technology company that creates and measures video ad campaigns, told eMarketer that interactive videos accounted for between 15% and 20% of the 15m video ads delivered in the US every month, and cited comScore figures indicating that figure would rise to between 20m and 30m.

"The three biggest verticals right now from a spending standpoint are CPG, then automotive, and finally, retail," he stated, but added: "Out of the top five, automotive is really the one you'd expect to be a true fit for this type of technology."

He explained how it was possible for even pharmaceutical brands to take advantage of interactive video, using a split screen with half containing a video ad and the other half scrolling warning text listing side effects as required by regulations.

"We're creating capabilities that make more sense for different verticals," said Chalozin. "And by doing that, we're increasing the addressable market dramatically."

The nature of interactive video meant that consumers spent more time with it than, for instance, a standard 30-second pre-roll ad, but Chalozin cautioned against over-complicating them.

He cited the example of a car manufacturer who could have an explanation about the car, location of the closest dealer, a discount offer, a test drive, and more. "At the end of the day, we see an overall decrease of performance with too many options," he said.

As always with new areas in digital, measurement was an issue. Chalozin noted that brands were demanding to know the value and effectiveness of interactive ads and suggested that it could be connected to traditional marketing channel metrics, including brand awareness or recall.

Studies have shown that interactive online content, such as that viewed on PC, can enhance the efficiency of non-interactive offline content, such as that seen on television.

A recent article in the Journal of Advertising Research considered the effectiveness of advertising across devices and formats and concluded that: "When devices show different advertising formats (e.g., interactivity), sequential synergy effects can result".

Data sourced from eMarketer, Journal of Advertising Research; additional content by Warc staff

 
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