Outstream Video Advertisement Effectiveness

48 Pages Posted: 5 May 2022 Last revised: 12 Jan 2023

See all articles by Yifan Yu

Yifan Yu

The University of Texas at Austin; Amazon

Yingfei Wang

University of Washington - Michael G. Foster School of Business

Guangyu Zhang

Amazon

Zuohua Zhang

Amazon

Chu Wang

Amazon

Yong Tan

University of Washington - Michael G. Foster School of Business

Date Written: May 1, 2022

Abstract

Outstream video advertising is becoming increasingly popular in the industry. Differing from the instream video advertisements (ads) embedded in video content, outstream video ads auto-play in non-video environments when a user navigates to them. On online shopping websites and apps, sponsored outstream video ads target shopping queries and occupy high-visibility placements. We investigate the effectiveness of video ads in driving the click-through rate (CTR), by conducting a large-scale, query-level observational study on click-stream data, using video analytics, machine learning, and econometric analysis. We find that video ads attract consumer attention and are more effective when products are less differentiated from each other in a market. Contingent on consumer attention, video content features that facilitate efficient consumer learning or signal product quality significantly increase consumers' likelihood of clicking a product. Our work contributes to the literature on video advertisement and video analytics. It provides important implications for practitioners to understand consumer decisions and advertising effectiveness, create effective outstream video ads, and improve video ad recommendation systems.

Keywords: Outstream, video advertisement, video analytics

JEL Classification: M37, M31

Suggested Citation

Yu, Yifan and Wang, Yingfei and Zhang, Guangyu and Zhang, Zuohua and Wang, Chu and Tan, Yong, Outstream Video Advertisement Effectiveness (May 1, 2022). Available at SSRN: https://ssrn.com/abstract=4098246 or http://dx.doi.org/10.2139/ssrn.4098246

Yifan Yu (Contact Author)

The University of Texas at Austin ( email )

2317 Speedway
Austin, TX Texas 78712
United States

Amazon ( email )

Yingfei Wang

University of Washington - Michael G. Foster School of Business ( email )

Box 353200
Seattle, WA 98195-3200
United States

Guangyu Zhang

Amazon ( email )

Zuohua Zhang

Amazon ( email )

Chu Wang

Amazon ( email )

Yong Tan

University of Washington - Michael G. Foster School of Business ( email )

Box 353226
Seattle, WA 98195-3226
United States

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