In-Stream Mobile Video Ads Are More Effective Than Online Video Ads

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Rhythm NewMedia’s “Q2 2011 Rhythm Insights” report shows that in-stream mobile video ads are markedly more effective than traditional online video ads when it comes to completion rates. Also, though iPads account for just a fifth of Rhythm NewMedia’s user base, the tablets account for twice that proportion of video views.

According to the report, there was a 200 percent quarter-over-quarter increase in full-episode viewing on smartphones and tablets in the second quarter.

Rhythm NewMedia also found that its mobile in-stream long-form video ads averaged completion rates of more than 85 percent, compared to the approximately 80 percent completion rate for online in-stream ads. When it came to short-form video ads, the difference was even larger.

In-stream video ads achieved a completion rate of 87 percent in the second quarter, compared with a completion rate of 30 percent for interactive pre-roll ads and a completion rate of 27 percent for tap-to-interactive video ads.

The completion rate for in-stream video ads was quite steady across categories, with consumer packaged goods (CPG) seeing the lowest, and retail and travel seeing the highest rates.

For interactive pre-roll ads, CPG saw the lowest average completion rate, while travel saw the highest.

Rhythm NewMedia found that full-page ads with social media interactivity drew the highest click-through rates (CTR). Full-page ads with social media interactivity drew a CTR of 9.6 percent, 57 percent higher than the 6.1 percent for the average full-page ad.

The report also showed that Rhythm NewMedia’s average user base is made up of 80 percent iPhone and iPad, and 20 percent iPad only. The iPad-only segment accounted for 40 percent of video views.

Separate figures from Nielsen show that in the second quarter, 22 percent of tablet owners were ages 25-34, while 19 percent were 55+, 18 percent were 45-54, 17 percent were 35-44, 13 percent were 18-24, and 11 percent were 13-17.

Nielsen also found that 43 percent of tablet owners were women in the second quarter, up from 42 percent in the first quarter and up from 39 percent from the third quarter of 2010.

Meanwhile, 50 percent of smartphone owners in the second quarter were female, while 61 percent of e-reader owners were female in the same quarter.

Sources:

http://rnmd.net/data/uploads/pdf/q2-rhythm-insights-report_final.pdf

http://blog.nielsen.com/nielsenwire/online_mobile/changing-demographics-of-tablet-and-ereader-owners-in-the-us/

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