Outstream Video Advertisement Effectiveness
48 Pages Posted: 5 May 2022 Last revised: 12 Jan 2023
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: Suggested Citation