The folks at Mixpo have posted some of the performance metrics they’re seeing from their online video ad product. Just yesterday, we heard from Brownbook that listings containing video were showing 5x to 9x response rates (CTRs) over those that don’t.
With a decidedly larger sample (thousands of ad campaigns and tens of millions of video ad impressions), Mixpo reached similar conclusions. From Mixpo’s blog:
“Taking a sample of our case study work for advertisers in automotive, travel, events, and sports we’ve seen how VideoAds help advertisers reach their advertising objective driving average engagement rates (ER) 5X that of the clickthrough rate (CTR) of regular display ads and brand exposure (represented by average view time) where viewers on average watch more than 70 percent of the total video.”
Mixpo drills down a bit further with a few case studies (PDF downloads) for individual campaigns such as Major League Baseball (7x CTR increase), an auto dealer and a ski resort. Mixpo’s bottom line is that video garners quality engagement, so there aren’t just higher CTRs; these clicks can also have higher conversion rates.
Though this is mostly a look at online video compared with banner ads, another relevant comparison could be online video versus television advertising. Both media can attract a similar or overlapping set of advertisers. Generally speaking, online video offers more measurability and targeting components, not to mention cost advantages over television spot advertising.
SMBs, Video and the Economy
These factors went into the online video ad forecast we released last summer. Incidentally, I had a conversation earlier this week with a top company in the local video space that was wondering whether the economy will affect these video revenue projections.
We’re examining that question now. While we aren’t issuing any formal restate of the numbers, there are two ways to examine this. Like our recently released mobile forecast, the steep percentage of growth can be justified if you look at the fact that it is growing from a very small base.
Second, our Local Media Ad Forecast just released sees declines in many traditional media such as newspapers, television and radio. Mobile and search are the only categories growing and will see some share shifts from traditional media due to their measurable components and stronger ROI picture.
As that happens, online video could see some of the dollars coming out of television. Based on the difference in scale from television revenues to online video, it will require only a very small share shift to cause the growth rates in our online video forecast.
Even still, we’re going to take a closer and more empirical look. So far, we’re hearing strong SMB video sales from the major U.S. publishers that have begun to sell it over the past 12 to 18 months.