As advertisers increasingly explore new opportunities in online video, research from Nielsen has found that native video advertising has already proved a successful option in driving brand lift for leading advertisers.
Native video advertising comprises a content-based, user-initiated ad format with no length limit and is seen as particularly useful in a market where, according to the researcher, Americans spent more than 360 billion minutes online in December 2012 and streamed 24.6 billion videos.
Yet although an apparent huge opportunity for advertisers is presented in these statistics, Nielsen cautioned that making meaningful connections with consumers online can be challenging for advertisers as consumer choice, and media, expands across and within devices. It added that in an increasingly fragmented and crowded media landscape, understanding which creatives, publishers and ad formats resonate most with audiences can mean the difference between elevating brand lift and wasting crucial ad dollars.
Native is regarded by Nielsen as a viable solution addressing this issue, and it cited online video advertising distribution company Sharethrough which used its Online Brand Effect to compare the effectiveness of its native video ads in affecting brand lift metrics like awareness, purchase intent and favourability with that of the popular pre-roll video ad unit, which plays automatically before video content.
In deployment, Nielsen revealed that native video advertising outperformed pre-roll ads for all advertisers, regardless of the campaign’s category or marketing objective. Native ads generated 82% brand lift among users exposed to the ads and pre-roll units generated 2.1% brand lift among users exposed to the ads.