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Study: Digital Video Ads Generate Sales

Like commercials on TV, digital video ads are effective at generating sales, according to a new report by data company YuMe.

Content companies have been moving towards video because both consumers and advertisers are moving away from print. But there have been questions about the effectiveness of some digital ads, as well as concerns about audience fraud and viewability.

YuMe’s Power of Video survey of more than 1,000 respondents found that video ads are nearly twice as effective in driving purchases as image or text ads.

After seeing a digital video ad, 66% of those surveyed said they took action and 25% purchased a product. Among those who said they purchased a product, 74% said they did so in the past month.

With sound, sight and motion, video on digital platforms and devices elicits strong emotional responses and engagement, according to the report.

Among the respondents, 80% had an emotional reaction while watching an ad and more than 50% of digital ad viewers were more likely to pay attention to a digital video ad than ads with images or text only.

The survey also found that 73% of respondents remember more from video than other types of content and were two times more likely to tell others about a video ad than image or text ads. According to the survey, 32% of viewers invited others to watch.

“This study clearly reinforces what our clients have long known: the true power of video is its ability to drive stronger engagement and positively impact sales,” said Stephanie Gaines, VP, corporate marketing at YuMe. “This is an exciting time for digital advertising, as we’re seeing video ads deliver real returns against sales metrics. As our findings indicate, consumers respond well to video by engaging, sharing and buying products, at a rate that is 1.7 times more effective than other forms of digital advertising.”

Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.