YUME, MAGNA, THE IPG MEDIA LAB CONDUCT COMPREHENSIVE STUDY ON THE IMPACT OF PRE-ROLL, MID-ROLL AND OUTSTREAM AD VIDEO FORMATS

 

SAN FRANCISCO, CA – April 17, 2017 – IPG Media Lab, the creative technology arm of IPG Mediabrands, in partnership with YuMe, Inc. (NYSE: YUME), a proven partner for video advertising leadership and innovation, today announced the results of a scientific media trial examining the impact and value of pre-roll, mid-roll, outstream and social video across multiple screens, including mobile and PC. The resulting report, Navigating The New Digital Video Landscape, reveals key areas for digital growth, including the user experience across video ad formats and devices, performance against brand KPIs, and strategy optimization.

 

As brands continue to identify the most impactful video advertising formats, the report shared detailed insights about which format elicits the strongest consumer reaction. Among the key findings is that pre-roll remains a solid, formidable platform in which to showcase brand offerings. Compared to mid-roll and outstream, pre-roll is considered the least interruptive across devices, with only 17% of mobile device users feeling the ad interrupts the content, compared with 60% on outstream and 72% on mid-roll.

 

"We are big advocates of marketers using a mix of video formats and strategies to effectively reach target audiences, but it also comes as no surprise that pre-roll remains a dominant cornerstone in a multi-format approach. This artful balance of formats meets brand objectives while delivering memorable experiences for consumers,” said Michael Hudes, Chief Revenue Officer, YuMe. “Through this trial, we’ve been able to clearly outline and reveal the power and impact of video formats across devices. This type of data and insights will prove invaluable for brands continuing to innovate in this space.”

 

As brands continue to evolve their video advertising strategies, the media trial accounted for not only a wide-array of video formats, with five in total, but also 12 ad strategies, such as contextual relevance, ad length, creative type, etc. Participating brands in this trial included Ghirardelli’s and H&M.

 

“The results of this media trial offer unique and compelling insights that brands will be able to leverage across platforms,” said Kara Manatt, SVP, Intelligence Solutions Strategy at MAGNA. “User experience is not only critical to individual brand success, but also to the success of the industry as a whole. Brands can now make even more informed, data-driven decisions in order to better connect with audiences and create better user experiences at the same time.”

 

Key insights include:

 

Pre-Roll

  • Our old video standard, unskippable pre-roll, is the clear winner on mobile and desktops as an informative, engaging and relevant format.
    • Despite being less intrusive than mid-roll and outstream formats, it achieves the greatest break-through (ad recall).
    • 54% of consumers found pre-roll ads on mobile engaging, compared to 37% and 44% on outstream and mid-roll, respectively.
  • Even with pre-roll being such a strong format, the multi-format exposure of a pre-roll ad followed by an outstream ad performs equally as well as 2 pre-roll exposures.

Mid-Roll

  • Consumers have mixed attitudes about mid-roll. It feels most intrusive, but consumers were less likely to want to close out the ad immediately compared to the newer outstream.
  • Mid-roll communicates brand messages particularly well on larger, more TV-like screens.
    • Mid-roll ranked higher in message recall for desktop viewers at 27%, compared to 8% for outstream.

Social video

  • Social video offers a unique environment on mobile, allowing ads to feel the most integrated with the content.
    • 67% of viewers agreed that social video did not distrurb their browsing experience compared to 53% who agree for pre-roll.

Outstream

  • Outstream is rated much more positively among those who complete the video, indicating targeting is key.
    • When consumers complete the oustream video, they are about 3x more likely to remember the ad.
  • Outstream appears to miss out on the novelty effect we often see with new ad products. Consumers already feel quite familiar with outstream and user experience scores were lowest compared to other ad formats.
  • Clear best practices for outstream emerged, such as:
    • Ensuring outstream ads run in contextually relevant articles (e.g., video ad for restaurant in article about food)
    • PC provides a better canvas for outstream than mobile
    • Branded content performs particularly well in this format compared to traditional video ads

 

In conducting the media trial, a total of 6,864 users were recruited from a representative online panel. The survey directed participants to a media experience of their choosing, where they were able to view a webpage and watch video content based on their interests. Each participant was randomized into a test cell that determined what type of video they saw. Passive data collection took place during the ad experience, such as completion rates and time in view. Afterwards, participants completed a survey that measured traditional branding metrics and qualitative feedback.

 

About IPG Media Lab

The IPG Media Lab is the creative technology arm of IPG Mediabrands. Equal parts think tank, real-world proving ground, and change enabler, we provide agencies and media operators with the power to harness emerging communication opportunities by offering expertise, resources and consulting services tailored to drive quantifiable outcomes, learnings and strategies. The IPG Media Lab is part of IPG Mediabrands, the media innovation and investment arm of IPG. For more information, please visit www.ipglab.com or follow @ipglab.

 

About MAGNA

MAGNA is the centralized IPG Mediabrands resource that develops intelligence, investment and innovation strategies for agency teams and clients. We utilize our insights, forecasts and strategic relationships to provide clients with a competitive marketplace advantage.

 

MAGNA harnesses the aggregate power of all IPG media investments to create leverage in the market, negotiate preferred pricing and secure premium inventory to drive maximum value for our clients. The MAGNA Investment and Innovation teams architect go-to-market investment strategies across all channels including linear television, print, digital and programmatic on behalf of IPG clients. The team focuses on the use of emerging media opportunities, as well as data and technology-enabled solutions to drive optimal client performance and business results.

 

MAGNA Intelligence has set the industry standard for more than 60 years by predicting the future of media value. The MAGNA Intelligence team produces more than 40 annual reports on audience trends, media spend and market demand as well as ad effectiveness.

 

About YuMe

YuMe is a proven partner for video advertising leadership and innovation. We provide superior brand solutions with data-driven audience insights that increase engagement and sales. YuMe’s programmatic, audience-based technologies and unrelenting service deliver a complete marketing solution to engage audiences wherever they interact with content that matches their needs and interests. YuMe is headquartered in Redwood City, California, with worldwide offices. For more information, visit www.YuMe.com/pr, follow @YuMevideo and like YuMe on Facebook.

 

Forward-Looking Statement

This press release contains forward-looking statements, including those in management quotations. In some cases, you can identify forward-looking statements by the words "may," "will," "expect," "intend," "plan," "objective," "anticipate," "believe," "estimate," "predict," "project," "potential," "continue" and "ongoing," or the negative of these terms, or other comparable terminology intended to identify statements about the future. All statements other than statements of historical fact are statements that could be forward-looking statements, including, but not limited to, statements about the most effective ad formats, the impact and value of developing strategies to effectively reach target audiences, product offerings, strategic partnerships, and the benefits derived therefrom, growth strategies; market trends; and quotations from management. These forward-looking statements are subject to risks and uncertainties, assumptions and other factors that could cause actual results and the timing of events to differ materially from future results that are expressed or implied in the forward-looking statements. Factors that could cause or contribute to such differences include YuMe's history of net losses and limited operating history, which make it difficult to evaluate prospects, YuMe's fluctuating quarterly results of operations, and dependence on a limited number of customers in a highly competitive industry. These and other risk factors are discussed under "Risk Factors" in YuMe's Annual Report on Form 10-K for the year ended December 31, 2016 that has been filed with the U.S. Securities and Exchange Commission (the “SEC”), and in our future filings and reports with the SEC. The forward-looking statements in this press release are based on information available to YuMe as of the date hereof, and we assume no obligation to update any forward-looking statements.