Mashable Video Converts
In the continuing tradition of making all of our statistics point towards gloom and doom, BurstMedia released a study pointing to the bad news that just barely over half of all viewers of online video will tune out after seeing an instream advertisement. Even though the statistical analysis ends on a down note, they do deem fit to include a number of positive numbers in the report as well.
According to Burst Media’s numbers, slightly more than half of all online viewers recall seeing an instream advertisement (defined as either a pre-roll, mid-roll or post-roll advertisement). Those at the younger end of the spectrum, in the 18-24 demographic, have a greater ability to tune out the ad, where as the older set retains both the content and the advertisement.
The most encouraging news from the study is that seven of ten respondents ranging in age from 18 to over 65 sought out viewing video content online, though the bulk of those who did seek out online video content skewed predictably young and male.
The information that was presented as the ‘bad news’ was that of all respondents, 50.7% stop watching an online video once they encounter an in-stream advertisement, and only 43.2% stay to watch the ad and the rest of the video. The study didn’t delve at all into response ratios at all, which is one of the reasons I think the report tends to skew the results a bit too far into the negative category.
Ken Rutkowski last summer published an IQ Report based on numbers gathered by the Online Publishers Association that looked at the key factors that drove video advertising success. It found that of those that watched a video advertisement online, 45% had some sort of measurable response from the ad, and 31% followed through on the advertisement enough to go to the company website. Of those that watched the advertisement, 16% ended up making a purchase, and separate 13% either signed up for a free trial or ordered a subscription.
That’s a lot of numbers, so I’ll try to make sense of them by combining results from the two studies together. If under half watch the advertisement, and then 45% of those folks respond, you’ve got around a 25% viewer to response ratio, a not insignificant number. Likewise, of all the folks that will view a video, 12.9% will end up buying the product, requesting a free trial, or ordering a subscription.
Essentially, what I’m saying is that we’re looking at a glass half-full/half-empty situation here, but video advertisement still has the highest return on investment of all other forms of advertising when you disregard issues of targeting. As such, the results of the survey look much more like a net positive upon deeper digging than they might on first blush.