Video advertising online – YouTube data shows video advertising effectiveness

04/10/2012

The video advertising effectiveness of Google's TrueView ads has been demonstrated in a new report. It’s video advertising online ad campaigns on YouTube, which only charge marketers for ads watched in their entirety, produce an average of $1.70 in sales for every dollar spent, 2.4 times more efficient than TV ads.

Watch the TrueView ads in action here:

The TrueView ads give users control over which video ads they are shown. The idea behind TrueView is that if users are able to choose the ads they see, those ads are more likely to resonate with them and less likely to waste advertisers’ money and boost video ad effectiveness.

In examining 92 TrueView campaigns, Google saw that, within two weeks of a campaign running, every dollar invested in YouTube on average returned $1.70 in sales, which the company said is 2.4 times more efficient than TV ads.

Google also found that TrueView ads led to a 36 percent increase in site visits and a 36 percent in searches for a brand.

New lightbox display ad format

Google also used the announcement to announce its new display ad format 'Lightbox', aimed to boost its video advertising online.

Google described Lightbox as “the first of a new family of display ads that uses smart hover technology to drive engagement, where marketers only pay when a user engages.”

Advertisers pay on a cost-per-expansion basis and can include any type of rich-media content within the expanded format, such as YouTube videos, games or a product gallery linked to an e-commerce site.

The unit is initially only available to run online, but the spokesperson said Google is considering rolling it out to smartphones and tablets.

In testing, Google said that Lightbox generated six to eight times more engagement than standard click-to-expand ads.

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