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The Video Star Is Alive and Thriving


Video is the hot item right now in the digital ad world and it doesn’t appear that it will be cooling off any time soon. Big companies like Comcast, Verizon, Yahoo and Google are snatching up video content producers and video ad technology like Black Friday at Walmart.

The metrics seem to support the hype. In a just released report from ComScore and Opera Mediaworks, participants seeing native mobile video advertising delivered significantly higher metrics both at the top of the sales funnel and at the bottom of the sales funnel: indicators such as purchase intent, recall and likelihood to recommend.

Here are some statistics from Adelie Studios that show why video marketing is one of the best marketing opportunities in 2015 and the coming years:

  • 70% of marketing professionals report that video converts better than any other medium.
  •  The average internet user spends 88% more time on a website with video than without.
  • 64% of consumers are more likely to buy a product after watching a video about it.
  • Using videos on landing pages can increase conversions by 80%.
  • 59% of viewers will watch a video to completion that is less than 1 minute.
  • Despite all of this, only 24% of brands are using online video to market to consumers.

Clearly there is a huge opportunity to get in and stake out real estate in the world of digital video advertising channels. And if you have existing content, research shows that your repurposed content can deliver superior brand recall.

What about available video inventory?? It is a hot topic when it comes to video. Many in the business write off the shortage of inventory tales as a lot of hokum; supply side PR that only serves to drive up pricing; and that, aside from chokepoints that appear in swing or rural battleground states during election cycles, there is actually plenty of video inventory to go around. In some instances you should be to accept some skippable video inventory along with your non-skippable.   The pricing on average is around $16-$20 CPM, although more typical pricing is now based on a Cost Per View (CPV) model.

Says Kenny Day of BrightRoll: “Once you get beyond sites like YouTube or Hulu, inventory is widely available. In fact, it could be considered the prime real estate.”

“Sixty percent of the population never sees a YouTube video,” he says. “Smaller publishers with loyal followings — that’s where the action is.”

So, who are the top advertisers from Q2 ‘15 currently using video?:

  1. Apple Inc.
  3. Geico
  4. Procter & Gamble
  5. T-Mobile
  6. State Farm
  7. Google
  8. Hotwire, Inc.
  9. Hulu
  10. Microsoft

Top Categories are:

  1. Food & Drink
  2. Financial Services
  3. Arts & Entertainment
  4. Auto
  5. Computers & Consumer Electronics

Here are the main takeaways about video advertising:

  • The power of video to brand and persuade is undisputed. Video can increase conversions on landing pages by 80%
  • Video pricing will only come down as video inventory increases….and there is plenty out there currently. Best practice is to plan as far ahead as is practicable to ensure availability and pricing.
  • Repurposed video contributes to elevated recall, so don’t be afraid to use an existing TV spot.
  • The field is wide open…only 24% of advertisers are using video.


About Jim Dolan: Jim is EVP Revenue Strategies for Enradius, a Baltimore based digital agency specializing in geo-targeting/geo-fencing and cross device matching. Jim can be reached at [email protected]

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