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Native video beats pre-roll

News, 17 June 2016

NEW YORK: Mobile video ads on publishers' websites can perform significantly better than those on social media, according to new research.

Teads, a native video advertising company, used eye-tracking in a laboratory environment with 120 respondents to measure the impact of various content environments on the performance of mobile marketing.

This found that the content environment was a major contributor to how users engaged with advertising.

Not only were in-article native video ads more likely to be viewed than those in social feeds – by nine in ten respondents compared to six in ten – dwell time for such ads was 24% longer.

Consequently, unaided ad recall for this format was around twice as high as for skippable pre-rolls (and three quarters of users skipped skippable pre-rolls); the effect was even more pronounced among millennials.

Purchase intent, meanwhile, was shown to be 27% higher for native video ads than for skippable pre-rolls or those in social feeds.

"People are engaging in a very different manner," Bertrand Quesada, Teads CEO, told Adweek, adding that the level of engagement for video ads on Facebook and Twitter was "nowhere near" that of the videos his business placed on publishers' websites.

And while such comments might be expected from a native ad specialist, the approach certainly appears to be paying off as annual revenues for the company near $100m and its partners include publishers like the Washington Post, Condé Nast and The Atlantic.

"I think the business has scaled quickly because we invented this thing called outstream for native video, and we were doing it for two years before anyone even considered it an option," said Jim Daily, president/ US & Canada at Teads.

"So, we have green fields of opportunity with very innovative new ad formats for users."

These include new vertical video formats that are more natural for mobile.

Data sourced from Teads, Adweek; additional content by Warc staff