Based on click-through rates, pre-roll video ads are 8-25 times more effective than in-banner ads, according to new data from Web video company BBE.

The study analyzed data from over 2 billion impressions, and virtually all of the online video ad campaigns -- both streaming pre-roll and in-banner -- that ran on BBE's network in 2008.

"Finding average click-through rates of 1.44% draws a real distinction between in-stream and in-banner ads," said Matt Wasserlauf, CEO of BBE -- formerly Broadband Enterprises.

Wasserlauf noted that the study was data-agnostic because the company's clients asked for both streaming and in-banner ads.

BBE's goal was to find out which format brought advertisers the most bang for their buck, based on the most effective measurement the company has -- click-through rates.

According to Wasserlauf, streaming ads may be more effective because they more closely resemble what viewers are used to seeing on TV: ads that are associated with desired content and have to be watched before viewing the content -- thereby engaging the viewer more effectively.

Ad network Tremor Media recently found that pre-roll ads are highly effective when paired with the "right content." A study of more than 100 campaigns with nearly 65 million pre-roll impressions showed pre-roll video completion rates of around 80% for both 15- and 30-second streaming video advertising.

Similarly, Break Media and video ad technology provider Panache recently found that completion rates for pre-roll video ads approached 90%, and click-through rates averaged 10%.

Furthermore, according to a recent Ipsos MediaCT study, consumers are showing an increased willingness to watch ads in exchange for free online video content. A full two-thirds of the respondents said it was reasonable to show ads in front of professionally produced content such as music videos, news and sports clips.

 

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