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Increased engagement with online video advertising
September 29, 2020

Online video advertising can result in more than just increased brand awareness, which is what we most often associate video advertising with. They can also give the viewer a chance to consider the brand or product to a greater extent, lead to a positive perception of the viewer, increased purchase intention and ultimately increased sales. Advertising on YouTube or Advedro, can also strengthen the chances of achieving a higher return on investment compared to TV advertising. It shows new research done by Google.

In one survey, Google looked at video advertising on Google-owned YouTube and the TrueView ad format, which can be clicked away by the viewer after five seconds. In order to determine how the ads affect viewers' engagement over time, Google's analysis method Brand Lift was used, which measures the viewer's perception and behaviour in relation to the brand after seeing the video ad once. Analysis of several hundred campaigns shows that:

  • - 57% of the campaigns led to increased consideration of the brand or product.
  • - 24% of the campaigns led to an increased positive perception of the brand among viewers.
  • - 35% of the campaigns resulted in increased buying intention among viewers.

The result is, perhaps not surprisingly, even stronger among viewers who have seen more than 30 seconds of the ad or the entire ad. Among these, the purchase intention increased by 61 percent compared with the control group. At the same time, Google notes that creative videos lead to increased viewing time.

Google has also looked at how online video advertising affects profit in relation to investment compared to TV advertising. The survey was conducted in collaboration with MarketShare. Among the categories included in the study, two thirds or more of the media budget was invested in TV advertising. The study used the analysis model Media Mix Modeling, which measures which advertising channels are most effective, and what it would look like if a larger part of the media budget was distributed to these channels.

The results of the survey showed that advertising on YouTube can provide a better return compared to the investment compared to TV commercials. For example, shampoo advertising had 6.4 times higher results and smartphone advertising had almost twice the average higher profit. The analysis therefore advocated redistributing parts of the media budget and increasing the investment share of YouTube in order to achieve a higher profit.