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Videos most engaging in-app ad formats, study finds

The Drum 12 Jun 2019 09:39
The study is based on activity across 3tn ad requests on the Smaato platform in the first quarter of 2019.

A new study on in-app ad pricing and performance has found that the average click-through rates (CTR) of in-app video ads are 7.5 times higher than display ads.

In-app videos are often full screen, which means their viewability rates also tend to be much higher than smaller display formats. As a result, consumers are much more likely to click and, ultimately, convert.

This is according to Arndt Groth, the president at Smaato, which published the study with Liftoff, a performance-based mobile app marketing and retargeting platform.

The study is based on activity across 3tn ad requests on the Smaato platform in the first quarter of 2019, as well as from over 80bn ad impressions across 33m installs and 14m first-time events on the Liftoff platform.

“Video ads have always had higher engagement benchmarks than static display ad formats. In-app video ads are no different. Videos can grab our attention and tell a brand’s story in a way that static images simply cannot,” Groth told The Drum.

According to the IAB, digital ad spending exceeded $100bn in the US for the first time last year, with mobile advertising growing 40% year-over-year to reach nearly $70bn.

This means they tend to bid less for this type of inventory, he said, pointing out that rewarded video ads have very similar click-through and conversion rates.

Interstitial display ad eCPMs are 4.6 times more than banner ads, but the study found that interstitials received an average CTR 18 times higher than banners. This is because bigger ad sizes tend to drive more clicks, explained Groth.

The report also found that despite the wide average eCPM differences, interstitial, native, and banner display ads offer very similar cost per actions (install, registration, and purchase).

“They also tend to have higher CTR. So, the eCPM for these formats is higher. When buying on a cost-per-action basis, however, the advertiser is paying for the completed action, regardless of which format sparked it. Therefore, ad format does not play as large of a role in the actual price."

This makes the people using these devices more attractive to advertisers, he concluded, which drives up eCPMs. He added that this large gap between iOS and Android devices begins to close when accounting for device cost.

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Arndt GrothUSSmaatoGrothinterstitials
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