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www.doubleclick.com
February 2007




   Video Ad Benchmarks: Average
   Campaign Performance Metrics
   A DoubleClick Rich Media and Video Report
   By Rick E. Bruner, Research Director, DoubleClick and Jai Singh, Research Manager, DoubleClick




                                                                                                    Table of Contents

                                                   1. Executive Summary..................................................................2

                                                   2. Key Findings ............................................................................2
                                                      a. A healthy portion of exposed audiences interact with video ads ......2
                                                      b. Users click video “Play” button more than they click on image ads ..3
                                                      c. On average, video ads play two thirds of the way through ..............3
                                                      d. Video click rates are far higher than image format ads ..................4

                                                   3. Methodology ............................................................................4

                                                   4. About DoubleClick ....................................................................5




                                                                                  EMPOWERING ORIGINALS SINCE 1996
Video Ad Benchmarks: Average Campaign Performance Metrics


           Executive Summary
           Video is the hottest new format for online advertising. With DoubleClick’s acquisition of
           Klipmart last year, the company is now in a leading position to observe trends in this
           exciting new market.

           What follows are aggregated campaign performance metrics of online video ad placements
           from more than 300 campaigns. Those campaigns were placed by more than 130
           advertisers over a four month period in 2006. (For more details on how these data were
           compiled, refer to the Methodology section at the end of this report.)

           Our objective in conducting this analysis was to identify major trends in the performance
           metrics of video ad campaigns according to campaign features such as vertical industry
           sector, ad format, ad size, and ad length.

           Some highlights from this analysis include the following:

           A healthy portion of exposed audiences interact with video ads. On average, 8% of
           video ads generate a user interaction.

           Users click video “Play” button more than they click on image ads. Video ads generate
           about three times the replay rate as image ads generate clicks through to advertisers’ sites.

           On average, video ads play two thirds of the way through. Play-through rates do not
           vary greatly by expandable or standard video ad formats.

           Video click rates are far higher than image format ads. Users click on video ads about
           five times as often as they do on image ads.


                                                                                                Key Findings

                                                                                                A healthy portion of exposed
                                                                                                audiences interact with video
   Most ad units see healthy single-digit
                                                                                                ads
   interaction rates
                                                                                                The interaction rate is the “all in”
   Interaction Rate by Ad Unit Size
                                                                                                metric: It includes the sum total of
                                                                                                all interactions people have with
                                                                                                the video ad units, including
                                                                                                expansions, interactions with the
                                                                                                video control button, and custom
                                                                                                interactions and clicks – divided by
                                                                                                the total impressions served.

                                                                                                The overall average interaction rate
                                                                                                for ads studied in this analysis is
                                                                                                8%. Figure 1 shows how
Figure 1   Source: DoubleClick, 2006; aggregate analysis of video placements in 301 campaigns
                                                                                                interaction rate breaks out by ad




                                                                                                   © 2007 DoubleClick Inc. All Rights Reserved.   2
Video Ad Benchmarks: Average Campaign Performance Metrics


            unit size. The best performer is the 120x90, but that likely has less to do with the size of the
            unit (roughly the size of two postage stamps) than with the placement: For the campaigns in
            this analysis, all of the 120x90 units ran within instant message chat windows.

            Users click video “Play” button more than they click on image ads
            All DoubleClick video ads include a panel of control buttons, including Play, Pause, Stop,
            and Mute/Unmute. The rates of play for those actions, shown in Figure 2, are calculated as
            a percentage of total impressions served. Because almost all ads included in this analysis
            consisted of auto-play ads (in unexpanded ad units, without sound), presses of the Play
            button are reported here as Replay.

                                                                                                      As the chart shows, the video
                                                                                                      control consumers are most likely
    The action consumers take most often with
    video ads is to replay them                                                                       to click is the Play button. At 0.32%,
                                                                                                      consumers are approximately three
    Video Control Panel Interaction Rates
                                                                                                      times as likely to replay an online
                                                                                                      video ad unit as they are to click
                                                                                                      through on a standard JPG or
                                                                                                      GIF ad (the standard CTR for
                                                                                                      image ads is approximately 0.1%).

                                                                                                      On average, video ads play two
                                                                                                      thirds of the way through
                                                                                                      The majority of the video ad units
                                                                                                      observed in this analysis were in-
                                                                                                      page units as opposed to in-stream
 Figure 2   Source: DoubleClick, 2006; aggregate analysis of video placements in 301 campaigns

                                                                                                      units (that is, video ads embedded
                                                                                                      in web pages, not within streaming
                                                                                                      video content). For those in-page
                                                                                                      units, the most common length of
    Standard and expandable video ads see
    roughly the same rate of play through as                                                          play was 30 seconds; the next most
    one another                                                                                       common length was 15 seconds.
    Average Video View Time by Format
                                                                                                      Figure 3 shows the average
                                                                                                      number of seconds of play for
                                                                                                      those two most common types of
                                                                                                      in-page formats. There is little
                                                                                                      difference in the length of play
                                                                                                      between ads that expand to a
                                                                                                      larger display window and standard
                                                                                                      video ads that do not expand. In
                                                                                                      both cases, on average, video ads
                                                                                                      play approximately two thirds of the
            Source: DoubleClick, 2006; aggregate analysis of video placements in 301 campaigns; in-
 Figure 3                                                                                             way through.
            page units only




                                                                                                         © 2007 DoubleClick Inc. All Rights Reserved.   3
Video Ad Benchmarks: Average Campaign Performance Metrics


           It should be noted that consumers do not appear to be stopping the ads before the end of
           play by clicking the Stop button. As shown in Figure 2, clicks of the Stop button occur in
           less than 1% of total ad impressions. Rather, in most cases, consumers are probably
           navigating away from the content pages before the end of the ad unit's play.

           Video click rates are far higher than image format ads
         Most advertisers probably think of online video ads as being a brand-oriented format. Of
         course, they are excellent for branding, with the opportunity for sound, motion, and story.
                                                                  But when judged on the basic
                                                                  direct-response metric for online
   Click-through rates highest for in-stream ads,
                                                                  advertising – the click-through rate
   but high for all video formats relative to
                                                                  – online video ads perform
   image ads
                                                                  extremely well.
   Click-through Rate by Format

                                                                                               Figure 4 shows that online video
                                                                                               ads experience click-through rates
                                                                                               ranging from 0.4% to 0.74%,
                                                                                               depending on the online video
                                                                                               format. By comparison, the click-
                                                                                               rate for plain GIF or JPG image
                                                                                               ads based on DoubleClick data is
                                                                                               approximately 0.1% (DoubleClick
                                                                                               plans to release official numbers for
                                                                                               a range of other ad formats later
Figure 4   Source: DoubleClick, 2006; aggregate analysis of video placement in 301 campaigns
                                                                                               this year.).


           Methodology
           This analysis was based on aggregated and cleansed data from video placements of 301
           ad campaigns by 131 advertisers, representing 2.7 billion video ad impressions. Those
           campaigns ran on the Klipmart ad system between June and September 2006.

           Almost all video units in this analysis were auto-play ads. Almost all of those ads played
           with the sound off until users interacted to trigger sound.




                                                                                                  © 2007 DoubleClick Inc. All Rights Reserved.   4
Video Ad Benchmarks: Average Campaign Performance Metrics


        About DoubleClick

        DoubleClick provides technology and services that empower marketers, agencies and
        web publishers to work together successfully and profit from their digital marketing
        investments. Our focus on innovation, reliability, and insight enables clients to improve
        productivity and results.

        Since 1996, DoubleClick has empowered the original thinkers and leaders in the digital
        advertising industry to deliver on the promise of the rich possibilities of our medium. Today,
        the company’s DART and Performics divisions power the online advertising marketplace.
        Tomorrow, we will continue to enable clients to profit from opportunities across all digital
        advertising channels as consumers worldwide embrace them.

        DoubleClick has global headquarters in New York City and maintains 16 offices around the
        world to serve its more than 1,500 clients. See below for a list of our main offices.


                                        EMEA Headquarters
        US Headquarters                                                 Asia Pacific Headquarters
                                        The Plaza
        111 Eighth Avenue                                               Suite 19, Level 1
                                        East Point Business Park
        10th Floor                                                      88 Cumberland Street
                                        Clontarf, Dublin 3
        New York, NY 10011                                              The Rocks,
                                        Ireland
        Tel: 212-683-0001                                               Sydney, NSW 2000
                                        Tel: +353 1 246 0444
        Tel: 866-683-0001 (toll free)                                   Australia
                                        Fax: +353 1 246 0499
        Fax: 212-287-1203                                               Tel: +61 (0)2 8247 3700



        Worldwide Data Center
        Headquarters
        12396 Grant St
        Thornton, CO 80241
        Tel: 303-729-5200
        Tel: 866-729-5200 (toll free)
        Fax: 303-729-3233




                                                                      © 2007 DoubleClick Inc. All Rights Reserved.   5

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doubleclick video benchmarks - 2007

  • 1. www.doubleclick.com February 2007 Video Ad Benchmarks: Average Campaign Performance Metrics A DoubleClick Rich Media and Video Report By Rick E. Bruner, Research Director, DoubleClick and Jai Singh, Research Manager, DoubleClick Table of Contents 1. Executive Summary..................................................................2 2. Key Findings ............................................................................2 a. A healthy portion of exposed audiences interact with video ads ......2 b. Users click video “Play” button more than they click on image ads ..3 c. On average, video ads play two thirds of the way through ..............3 d. Video click rates are far higher than image format ads ..................4 3. Methodology ............................................................................4 4. About DoubleClick ....................................................................5 EMPOWERING ORIGINALS SINCE 1996
  • 2. Video Ad Benchmarks: Average Campaign Performance Metrics Executive Summary Video is the hottest new format for online advertising. With DoubleClick’s acquisition of Klipmart last year, the company is now in a leading position to observe trends in this exciting new market. What follows are aggregated campaign performance metrics of online video ad placements from more than 300 campaigns. Those campaigns were placed by more than 130 advertisers over a four month period in 2006. (For more details on how these data were compiled, refer to the Methodology section at the end of this report.) Our objective in conducting this analysis was to identify major trends in the performance metrics of video ad campaigns according to campaign features such as vertical industry sector, ad format, ad size, and ad length. Some highlights from this analysis include the following: A healthy portion of exposed audiences interact with video ads. On average, 8% of video ads generate a user interaction. Users click video “Play” button more than they click on image ads. Video ads generate about three times the replay rate as image ads generate clicks through to advertisers’ sites. On average, video ads play two thirds of the way through. Play-through rates do not vary greatly by expandable or standard video ad formats. Video click rates are far higher than image format ads. Users click on video ads about five times as often as they do on image ads. Key Findings A healthy portion of exposed audiences interact with video Most ad units see healthy single-digit ads interaction rates The interaction rate is the “all in” Interaction Rate by Ad Unit Size metric: It includes the sum total of all interactions people have with the video ad units, including expansions, interactions with the video control button, and custom interactions and clicks – divided by the total impressions served. The overall average interaction rate for ads studied in this analysis is 8%. Figure 1 shows how Figure 1 Source: DoubleClick, 2006; aggregate analysis of video placements in 301 campaigns interaction rate breaks out by ad © 2007 DoubleClick Inc. All Rights Reserved. 2
  • 3. Video Ad Benchmarks: Average Campaign Performance Metrics unit size. The best performer is the 120x90, but that likely has less to do with the size of the unit (roughly the size of two postage stamps) than with the placement: For the campaigns in this analysis, all of the 120x90 units ran within instant message chat windows. Users click video “Play” button more than they click on image ads All DoubleClick video ads include a panel of control buttons, including Play, Pause, Stop, and Mute/Unmute. The rates of play for those actions, shown in Figure 2, are calculated as a percentage of total impressions served. Because almost all ads included in this analysis consisted of auto-play ads (in unexpanded ad units, without sound), presses of the Play button are reported here as Replay. As the chart shows, the video control consumers are most likely The action consumers take most often with video ads is to replay them to click is the Play button. At 0.32%, consumers are approximately three Video Control Panel Interaction Rates times as likely to replay an online video ad unit as they are to click through on a standard JPG or GIF ad (the standard CTR for image ads is approximately 0.1%). On average, video ads play two thirds of the way through The majority of the video ad units observed in this analysis were in- page units as opposed to in-stream Figure 2 Source: DoubleClick, 2006; aggregate analysis of video placements in 301 campaigns units (that is, video ads embedded in web pages, not within streaming video content). For those in-page units, the most common length of Standard and expandable video ads see roughly the same rate of play through as play was 30 seconds; the next most one another common length was 15 seconds. Average Video View Time by Format Figure 3 shows the average number of seconds of play for those two most common types of in-page formats. There is little difference in the length of play between ads that expand to a larger display window and standard video ads that do not expand. In both cases, on average, video ads play approximately two thirds of the Source: DoubleClick, 2006; aggregate analysis of video placements in 301 campaigns; in- Figure 3 way through. page units only © 2007 DoubleClick Inc. All Rights Reserved. 3
  • 4. Video Ad Benchmarks: Average Campaign Performance Metrics It should be noted that consumers do not appear to be stopping the ads before the end of play by clicking the Stop button. As shown in Figure 2, clicks of the Stop button occur in less than 1% of total ad impressions. Rather, in most cases, consumers are probably navigating away from the content pages before the end of the ad unit's play. Video click rates are far higher than image format ads Most advertisers probably think of online video ads as being a brand-oriented format. Of course, they are excellent for branding, with the opportunity for sound, motion, and story. But when judged on the basic direct-response metric for online Click-through rates highest for in-stream ads, advertising – the click-through rate but high for all video formats relative to – online video ads perform image ads extremely well. Click-through Rate by Format Figure 4 shows that online video ads experience click-through rates ranging from 0.4% to 0.74%, depending on the online video format. By comparison, the click- rate for plain GIF or JPG image ads based on DoubleClick data is approximately 0.1% (DoubleClick plans to release official numbers for a range of other ad formats later Figure 4 Source: DoubleClick, 2006; aggregate analysis of video placement in 301 campaigns this year.). Methodology This analysis was based on aggregated and cleansed data from video placements of 301 ad campaigns by 131 advertisers, representing 2.7 billion video ad impressions. Those campaigns ran on the Klipmart ad system between June and September 2006. Almost all video units in this analysis were auto-play ads. Almost all of those ads played with the sound off until users interacted to trigger sound. © 2007 DoubleClick Inc. All Rights Reserved. 4
  • 5. Video Ad Benchmarks: Average Campaign Performance Metrics About DoubleClick DoubleClick provides technology and services that empower marketers, agencies and web publishers to work together successfully and profit from their digital marketing investments. Our focus on innovation, reliability, and insight enables clients to improve productivity and results. Since 1996, DoubleClick has empowered the original thinkers and leaders in the digital advertising industry to deliver on the promise of the rich possibilities of our medium. Today, the company’s DART and Performics divisions power the online advertising marketplace. Tomorrow, we will continue to enable clients to profit from opportunities across all digital advertising channels as consumers worldwide embrace them. DoubleClick has global headquarters in New York City and maintains 16 offices around the world to serve its more than 1,500 clients. See below for a list of our main offices. EMEA Headquarters US Headquarters Asia Pacific Headquarters The Plaza 111 Eighth Avenue Suite 19, Level 1 East Point Business Park 10th Floor 88 Cumberland Street Clontarf, Dublin 3 New York, NY 10011 The Rocks, Ireland Tel: 212-683-0001 Sydney, NSW 2000 Tel: +353 1 246 0444 Tel: 866-683-0001 (toll free) Australia Fax: +353 1 246 0499 Fax: 212-287-1203 Tel: +61 (0)2 8247 3700 Worldwide Data Center Headquarters 12396 Grant St Thornton, CO 80241 Tel: 303-729-5200 Tel: 866-729-5200 (toll free) Fax: 303-729-3233 © 2007 DoubleClick Inc. All Rights Reserved. 5