CPG Firms Improving Their Online Video Pitches

It may not be a big surprise that online video ads are rapidly growing. And marketers realize that these ads are engaging consumers in ways that are increasing the average click-​thru rates (CTR). What might be surprising is the category of marketer that is making a big push into online video: Consumer Packaged Goods (CPG) vendors.

Top-​line statistics from AdoTube’s  recently published Q3 2010 Format Index break out as follows:

  • By the end of 2010, interactive ads will double over last year and make up 48%  of all online ads
  • The CTR for the interactive ads is growing at a rate of 237%
  • CPG vendors account for 30.4% of video ads online

Other large vertical industries that are purchasing a significant share of the  video ad inventory include entertainment, at over 15%, and travel, retail, finance/​insurance and fashion, at just under 10% each. However, engagement rates and CTRs do not exactly mirror the ad efforts being put forth by each industry. Note that for purposes of this study, engagement is defined as interacting in some way with an ad. Engagement examples include playing a game or using a store locator feature.  According to this study, the finance/​insurance and entertainment industries show the highest engagement rates. Web services and products have the highest CTR and this industry group also ends up with a high engagement rate.

The study also revealed that Interactive Overlay  format has grown from 12% to 25% this year in the video ad category. This format allows marketers to run an in-​video ad on the top part of the screen which is displaying the traditional video ad. In this format, the CPG category experienced this highest CTR at 3.06%.

The results of this study show that online media space providers continue to introduce new ways for marketers to attract consumer attention. And in many cases, these new ad formats are working well to increase consumer awareness and hopefully, sales.

[Source:  AdoTube’s Q3 In-​Video Format Index. Adotube​.com. 18 Nov. 2010. Web. 1 Dec. 2010] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.