Q2 2010 Format Index - AdoTube

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Quarterly index reviewing trends & data of the video advertising space.

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Q2 2010 Format Index - AdoTube

  1. 1. Q2 2010Format Index © 2007-10 AdoTube, Inc. – All Rights Reserved
  2. 2. Q2 2010AdoTube In-Video Ad Format IndexAdoTube serves ads on over 5k+ publishers sites and serves over 50MM to 75MM in-video ad impressions per week.This format index provides an overview of the effectiveness of our many different in-stream video ad formats over 2009, Q1 2010 and Q2 2010, with some preliminary Q3estimates.Procedure:We collected and analyzed data from a sample of 1.2 Billion impressions deemed tobe statistically relevant, taking advertising verticals, video content, and type oftargeting into account. This was then split into four distinct categories: Branded Overlay Interactive Overlay Standard Pre-Roll Polite Pre-Roll®Additional testing of Polite Pre-Roll vs Standard Pre-Roll was conducted as blind A/BTesting over 5 Campaigns.The following numbers are based on results derived from AdoTube’s Network only anddo not represent the in-video ad space as whole. © 2007-10 AdoTube, Inc. – All Rights Reserved 2
  3. 3. Key Takeaways The Power of Interactive Ads1. Interactive ad format grew from 12% to 33% of ads served by AdoTube from ‘09 to ‘102. The adoption of interactive ad formats has resulted in a significant increase of 59% in AdoTube’s overall average CTR from ‘09 to ‘103. Interactive overlays are 83% more effective at driving click-throughs than are branded overlays4. Testing showed that Polite Pre-Roll® viewers who are interested in an advertisement will be more likely watch through the entire ad and 133% more likely to click-through. Additionally, allowing viewers to hide the ad results in 36% lower abandonment rates for publishers5. Overall, CTR growth for standard pre-rolls has remained stagnant, but the CTR growth for Polite Pre-Roll® has risen dramatically as it has been rolled out. It is expected to jump 133% from Q2 to Q3 2010, becoming 63% higher than the standard pre-roll6. The Polite Pre-Roll® has shown a 7% higher retention rate, meaning that those who begin to watch a Polite Pre-Roll® ad are 7% more likely to watch through the whole ad. Additionally, those who choose to dismiss the ad are able to watch their video with overlay reminders, while those who leave a Standard Pre-Roll are abandoning the video stream as well © 2007-10 AdoTube, Inc. – All Rights Reserved 3
  4. 4. Diversification of Interactive FormatsAs we have continued to expand, we have been introducing interactive formats to helpdiversify in-video advertising opportunities. This has been good for both advertisers andpublishers as demonstrated by significant growth over the past number of months.On average, Interactive Formats (Polite Pre-Roll® and Interactive Overlay) have grownsteadily from 12% in 2009 to 33% of ads served so far in 2010. Q1 2010 Q2 2010 Q3 2010 Polite Pre- Polite Pre- Roll® Interactive Roll® Polite Pre- 11% Overlay Roll® 17% 12% 25% Interactive Branded Overlay 15% Pre-Roll Overlay 54% InteractivePre-Roll 12% Pre-Roll 64% Overlay 65% 17% Branded Overlay 4% Branded Overlay 4% © 2007-10 AdoTube, Inc. – All Rights Reserved 4
  5. 5. Overall Growth in Interactive Formats leads to Higher CTRDiversification into more interactive ad formats from 2009 to 2010 has led to a59.3% higher Overall CTR. Based on preliminary estimates, the Q3 CTR shouldgo up 72% over Q2. Overall CTR 2.00% 1.80% 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 2009 Q1 2010 Q2 2010 Prelim. Q3 © 2007-10 AdoTube, Inc. – All Rights Reserved 5
  6. 6. CTR Interactive Overlay vs. Branded OverlaySpecifically isolating interactive overlays vs. branded overlays,interactive overlays are 83% more effective in driving click-throughs. Branded vs. Interactive Overlay 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 2009 Q1 2010 Q2 2010 Branded Interactive © 2007-10 AdoTube, Inc. – All Rights Reserved 6
  7. 7. A/B Testing ResultsStandard Pre-Roll vs. Polite Pre-Roll®While rolling out our Polite Pre-Roll® format, we worked with selectadvertiser to perform isolated A/B Testing over 30 million servings inorder to see how the less intrusive Polite Pre-Roll® stacks up againstthe Standard Pre-Roll. We found: While less viewers watched 25% of the Polite Pre-Roll® 3% more viewers actually chose to watch through the end of the ad Ad Format View-Thru Rate (25%) View-Thru Rate (100%) Polite Pre-Roll® 46.3% 37.1% Standard Pre-Roll 54.5% 36.0% The Polite Pre-Roll® has A 133% higher CTR. (3.76% vs. 1.61%) The Polite Pre-Roll® showed a 36% lower video abandonment rateResults: Viewers who are actually interested in the advertisement willbe more likely watch through the entire ad and click-through with thePolite Pre-roll®. Additionally, it lowers abandonment rates forpublishers by allowing viewers who are not interested to hide the ad. © 2007-10 AdoTube, Inc. – All Rights Reserved 7
  8. 8. Actual CTR:Standard Pre-Roll vs Polite Pre-Roll®CTRs for Polite Pre-Roll® have steadily increased as they are rolled out,while the standard pre-roll CTR has remained fairly constant. With theofficial PPR announcement, the number of ads served will increase andthe CTR is expected to jump. Preliminary Q3 results show a 133%jump, yielding a 63% higher CTR than Standard Pre-Rolls. 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 2009 Q1 2010 Q2 2010 Prelim. Q3 Standard Pre-Roll Polite Pre-Roll® © 2007-10 AdoTube, Inc. – All Rights Reserved 8
  9. 9. Actual View-Through Rate:Standard Pre-Roll vs Polite Pre-Roll®While the number of Polite Pre-Rolls® served increases, we expect to see a closer view-through rate to our A/B testing. As for now, it is interesting to note that we are stillseeing a 7% higher retention rate on the Polite Pre-Rolls®. This showcases how thePolite Pre-Roll® is a better option to keep a viewer’s attention if they are interested inthe ad. Additionally, if a viewer decides to dismiss the Polite Pre-Roll®, they will still seeoverlay reminder messaging throughout the video. For standard pre-roll, a viewer whodoes not watch through all of the ad has generally left the video entirely. POLITE PRE-ROLL® Quarter View-Thru Rate (25%) View-Thru Rate (100%) Ad Retention Rate 2009 Total N/A N/A N/A Q12010 Total 48.64% 37.24% 76.56% Q22010 Total 47.60% 34.10% 71.64% Q32010 Total 49.40% 37.71% 76.34% Average 48.50% 36.71% 74.85% STANDARD PRE-ROLL Quarter View-Thru Rate (25%) View-Thru Rate (100%) Ad Retention Rate 2009 Total 59.03% 43.77% 74.15% Q12010 Total 57.57% 41.43% 71.96% Q22010 Total 58.48% 42.65% 72.93% Q32010 Total 56.51% 42.11% 74.52% Average 57.77% 42.74% 73.39% © 2007-10 AdoTube, Inc. – All Rights Reserved 9
  10. 10. About AdoTube & Definition of TermsAbout AdoTube AdoTube is a complete in-stream/in-video solution that enables each part of the industry (agencies, advertisers and publishers) to have easy and efficient access to in-stream ads. AdoTube’s platform includes the Adotube Ad Network, Publisher Management Tool (PUMA), In-Stream Ad Exchange (AdEx), Network Partner Console for third party networks media brokers ,and Creative Services. AdoTube’s complete platform helps each part of the industry to deliver high-quality, in-stream advertising solutions through a quick, easy and cost efficient platform. AdoTube is headquartered in New York, with offices in California and Europe. To learn more about AdoTube, become a partner, or see their solutions for agencies, advertisers, publishers and ad networks, visit www.adotube.com.Definitions In-stream video ad: A video ad that is played or viewed from a video player Branded Overlay: An in-video advertisement that runs on top of the video content (bottom 1/3 of the screen) while the video is playing. Clicks-through to a web-site, pausing the video Interactive Overlay: Similar to a Branded overlay with interactive elements such as a game or a video Standard Pre-Roll: An in-stream video ad that plays before video playback Polite Pre-Roll®: A dismissible and retractable in-stream video ad. When dismissed during video an overlay ad reminds the viewer to watch the ad Click-Through Rate(CTR): The percentage of viewers who clicked through an ad to the target link View-Through Rate: The percentage of viewers who watched through a part or all of a video ad © 2007-10 AdoTube, Inc. – All Rights Reserved 10
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