How to increase your CPM using video formats


How to increase your CPM using video formats

Increasing the cost per thousand impressions (CPM) is one of the main goals of publishers. A higher CPM will lead to an increase in revenues. Video isn’t the most conventional way to display ads, however it is more and more present on the web. 

Video ads are developing fast. Between 2016 and 2017, revenues linked to video ads have increased by 54%, which represents 6.2 millions of dollars. While banners remain predominant in the advertising market, revenues only increased 35% during the same period. Videos are getting more popular as they are more qualitative and used by well-known brands. There are a few ways to monetize this new trend.

Types of video advertising

There are two main types of video format: instream and outstream. Instream gathers ads that are displayed thanks to a video reproductor, like pre roll ads. Outstream is used to refer to ads displayed in an environment that doesn’t include a video, like in-text ads. In-text ads are not started by the visitor, they start rolling when he enters the page. They are often placed between two paragraphs. Also, they are compatible with desktop and mobile devices. Those ads are used when there is a lot of text, perfect for blog articles for instance. Good to know: they can be modified to offer a better user experience. Content is displayed without sound unless the user interacts with it. 

Pre roll ads start playing before the video chosen by the user. This kind of ad is very frequent on Youtube, or other video websites. The best way to use pre roll ads is by showing the audience why it is necessary to keep watching the video. This can be done by asking questions, using emotions… Users must be attracted to the video to keep watching past the first seconds. 

Why do video ads work so well?

Video ads becoming more and more popular is no surprise. According to HubSpot, 78% of people watch videos online every week. 55% of people watch videos every day! 

This shows that there are great opportunities for advertisers with pre-roll. According to AdAge, 78% of the users will watch the ad until the end. Video ads are a strategic investment to display a message to large audiences. 

In-text video ads also are a good investment. Nowadays, consumers have a short attention span. Inserting a video in a long text is an effective way to catch the visitor’s attention. On average, readers will see more than 66% of the ad. 

Videos have taken an important place on the internet. Investing in videos ads is a decision that will enable your website to make its place in the world of digital advertising. Video ads represent 14% of the digital revenues and it’s bound to increase in the upcoming years. Another way to increase your CPM! Want to know even more ways? Read our article here.

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