Nobody likes pre-roll video ads — generally, they just seem to be an annoyance that gets between you and the viral cat video you’re dying to see. Opt-in video ads, or ads you choose to watch in exchange for a reward, are proving to be a far better alternative to typical pre-rolls, according to social video ad company Jun Group.
In terms of video completion and engagement rates, opt-in video ads see 98 percent and 3.5 percent respectively, while industry averages are just 64 percent and 1.2 percent, Jun Group says.
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To show just where the new ad format is going, Jun Group released a report today based on 7.7 million opt-in video ad views made between May and August of this year. And for Facebook, the company’s data could mean trouble ahead.
Jun Group found that Facebook engagement fell 9 percent over the year, while advertiser website visits shot up by more than 20 percent. In particular, consumers are using website features like store locators and coupons. Facebook remains the most popular form of interaction, with 31 percent of overall engagement, but advertiser site visits are now nipping at the social network’s heels, with 28 percent.
“We’re excited about [the move towards advertiser website engagement] because to us, that’s what’s meaningful to our brand customers,” Jun Group CEO Mitchell Reichgut told VentureBeat in an interview last week.
But he noted that some of the results from the report, the third Jun Group has released so far, are counterintuitive. In particular, the company found that long ads don’t perform that much worse than short ads — even though Jun Group last year said that shorter ads were better. 87 percent of consumers watch full two-minute ads, compared to 98 percent who complete 30 second ads (minute-long ads get around 92 percent completion). Surprisingly, two-minute ads were the most viewed of Jun Group’s videos at 37 percent, and minute-long videos accounted for 33 percent. Meanwhile, short 15-second ads were the lowest at 6 percent.
“It’s much more important to target people properly … when you do that, and you’re in this environment that they’re opting in, you can tell a long story,” Reichgut said.
Targeting also leads to higher consumer engagement, according to the study. When a video ad asked a pre-screening question like “Do you own a cat?” consumers interacted with brands more by 13 percent.
Squashing the belief that you need to create ad content specifically for the web, or God forbid, try to go viral, Reichgut also pointed out that it doesn’t actually matter if brands reused television ads on the web. Both saw engagement levels that were incredibly similar (and TV ads even performed slightly better).
In terms of demographics, Jun Group’s study also found that people between the ages of 18 and 34 were the least likely to engage with ads.
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