Market Overview

Opt-In Video Advertising is Preferred Ad Choice for Consumers According to New Nationwide Survey; Adoption May Deter Ad Blocking

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Research from OpenX, the Mobile Marketing Association and MediaMath
highlights opportunity to provide consumers a more rewarding advertising
experience

OpenX, the world's leading independent advertising technology provider,
today revealed new consumer and brand marketer research conducted in
coordination with the Mobile Marketing Association (MMA) and MediaMath,
highlighting the growing desire of consumers for more relevant, engaging
and "rewarding" advertising experiences.

The nationwide survey of consumers showcases the dilemma that many
marketers face with digital advertising today; over 80 percent of online
users report feeling overwhelmed by the number of ads they see, with
over two thirds also saying ads they see are not relevant to them. This
negative consumer experience has led 8 out of 10 to consider downloading
an ad blocker.

The data, however, also showcases a clear path forward for brands. While
consumers are often frustrated with advertising, nearly 70 percent said
they would be open to seeing even more ads than they see today if they
were more relevant to them.

The consumer survey showcases that the best way for brands to provide
more relevant ad experiences is with opt-in advertising - advertising
that rewards a user for their time. 79 percent of consumers said that
they prefer opt-in advertising over every other ad format and with video
advertising in particular, opt-in advertising ranked significantly
higher than pre-roll, mid-roll, social/native or pop-up/interstitial
advertising.

The data also includes responses from more than 100 global marketers
that outlines their evolving approach to opt-in video. More than 80
percent of marketers acknowledged that opt-in video can provide a
superior user experience and better ROI than other ad formats, and 65
percent of respondents planned to increase spend in opt-in video next
year.

Other highlights from the research include:

  • The opportunity to expand opt-in video beyond gaming: While
    games were the environment where respondents were by far most likely
    to have experienced opt-in video to date, there is opportunity for all
    different app categories to utilize the ad format, and OpenX has seen
    consistent performance across apps that include photography, social
    networking, music, dating and home design. For advertisers, consumers
    are also open to engaging with opt-in video for a variety of different
    value exchanges, and more than two thirds of consumers would watch a
    15 second ad in exchange for retailer discounts, free streaming music,
    or an hour of premium streaming video content.
  • The opportunity for deeper engagement: Consumers were not only
    willing to watch 15 second ads for certain kinds of value exchanges,
    but also ads up to 60 seconds in length. Over 70 percent of consumers
    would watch a 60 second video ad for a retail discount.
  • The power of mobile overall: When done well, mobile advertising
    can drive recall, clicks and eventually purchases. Two thirds of
    consumers can recall a specific brand they have seen advertised on
    mobile in the last week, 60 percent click on mobile ads at least
    weekly, and 20 percent make weekly purchases based off digital ads.

"As long as it is on their terms, consumers are open to engaging with
ads, and this is big news for both marketers and publishers," said
Maggie Mesa, VP of Mobile at OpenX. "When the ad experience works for
the consumer, everyone in the ecosystem benefits, and every brand
marketer, publisher or app developer should be thinking about how they
can capitalize on this opportunity, and utilize these ad units that are
very clearly in demand."

"Marketers are looking for new ways to capture consumer attention, and
since mobile phones are the most personal devices we own, taking a close
look at consumer preference is critical," said Sheryl Daija, CSO of the
MMA. "Opt-in video has the potential to drive the next wave of consumer
engagement, and it's an example of how the mobile advertising industry
is evolving and pushing the larger digital media industry forward."

In addition to the survey data, OpenX and the MMA teamed with MediaMath
to look at data from opt-in video campaigns. The data showed opt-in
video ads had an 87 percent completion rate, a 13 percent delta over
traditional video, highlighting the consumer friendly nature of the ad
format.

"While marketers in the gaming space have been capitalizing on opt-in
video for years, the ad format is ready to break into the mainstream,
and brand marketers in different verticals can leverage opt-in video to
drive real consumer engagement," said Lewis Rothkopf, General Manager,
Media and Growth Channels, MediaMath. "Reaching consumers who are
proactively choosing to watch video ads is consistent with our Consumer
First vision of recognizing and understanding the consumer, respecting
her choices relative to marketing, and rewarding her with high-quality,
engaging experiences."

The report, "The Consumer Engagement Crossroads," can be downloaded for
free by visiting www.openx.com/optinvideo.

About OpenX

OpenX powers highly relevant advertising at global scale, delivering
quality and value to brands, publishers and consumers across every type
of connected screen and ad format. The company's leading technology
aggregates, curates and values consumer interest in real time on one of
the world's largest and highest quality ad exchanges to ensure marketers
reach exactly the audience they want. OpenX serves more than 30,000 of
the world's most recognized brands, more than 1,200 websites and more
than 2,000 premium mobile apps.

http://www.openx.com
@openx

About MMA

The MMA is the world's leading global non-profit trade mobile marketing
association comprised of more than 800-member companies, from nearly
fifty countries around the world. Our members hail from every faction of
the mobile marketing ecosystem, including brand marketers, agencies,
mobile technology platforms, media companies, operators and others. The
MMA's mission is to accelerate the transformation and innovation of
marketing through mobile, driving business growth with closer and
stronger consumer engagement. Anchoring the MMA's mission are four core
pillars; to cultivate inspiration by driving innovation for the Chief
Marketing Officer; to build the mobile marketing capabilities for
marketing organizations through fostering know-how and confidence; to
champion the effectiveness and impact of mobile through research
providing tangible ROI measurement; and to advocate for mobile
marketers. Additionally, MMA industry-wide committees work
collaboratively to develop and advocate global best practices and lead
standards development.

Members include: 1-800-Flowers.com, AdColony, Allstate, Ally Financial,
American Express, AT&T, Bank Of America, Campbell's, JPMorgan Chase,
Chobani, Citi, Clear Channel Outdoor, Colgate-Palmolive, Dunkin' Brands,
eBay, E*TRADE, Electronic Arts, ESPN, Facebook, Ford, Foursquare,
Google, GroundTruth, Heineken, Hershey's, Hilton Worldwide, Hulu, IBM
Watson, Johnson & Johnson, LinkedIn, Marriott International, Match
Group, Mastercard, McDonald's, Microsoft, MillerCoors, OpenX, Pandora,
PepsiCo, Pfizer, Pinterest, PlaceIQ, Procter & Gamble, R/GA,
RetailMeNot, Salesforce, Samsung, Snap Inc., Spotify, SUBWAY, Tapjoy,
Target Inc., The Coca-Cola Company, Time-Inc, T-Mobile, TUNE, Turner
Broadcasting, Twitter, Uber, Ubimo, Unilever, Vibes, Walmart, Wendy's,
Zurich and many more. The MMA's global headquarters are located in New
York with regional operations Asia Pacific (APAC), Europe/Middle
East/Africa (EMEA) and Latin America (LATAM). For more information about
the MMA please visit www.mmaglobal.com.

About MediaMath

MediaMath helps leading global marketers deliver personalized digital
advertising across all connected touchpoints. Over 9,500 marketers in 42
countries use our enterprise software every day to launch, analyze and
optimize their digital advertising campaigns across display, native,
mobile, video, audio, social, digital out of home and Advanced TV
formats. Founded in 2007 as a pioneer in "programmatic" advertising,
MediaMath was recognized by Forrester in 2017 as a Leader in both the
Demand Side Platform and Data Management Platform categories. MediaMath
has offices in 17 cities worldwide and is headquartered in New York
City. To learn more about how MediaMath helps innovative marketers
delight their customers and drive real business outcomes, follow us at
@mediamath or visit www.mediamath.com.

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