IAB: 80% of consumers accept ads in exchange for free digital video

Dive Brief:

Consumers are viewing video for different reasons, on different devices throughout their days, and these factors influence their openness to viewing advertising, according to a new report the Interactive Advertising Bureau (IAB) shared with Marketing Dive. The "A Day in the Life of Video Viewers" research reveals that people pay more attention to what is in the video and the ads when they are watching for educational reasons.
Almost 80% of consumers that watch digital video are agreeable to ads in exchange for free content. More than half of these viewers revealed a preference for contextual video ads, and 37% said they were more receptive to ads when these ads were targeted.
Per the IAB report, the most common reason that people watch videos online, among those viewers that watch videos online weekly, is to relax at the end of the day. Almost 90% of people reported nighttime unwinding as their motivation. Other common reasons that people watch online video is planned viewing (76%) and taking a break (75%).

Dive Insight:

Video continues to grow and evolve at a rapid pace. Marketers that hope to connect to consumers via this channel need to be agile in their approach and consider the mindset that consumers are in when they are engaged in viewing video and the devices they are using. Consumers will be more receptive to certain kinds of ads at certain times of day, and on different devices. Per the IAB report, 40% of viewers said they pay more attention to ads when they are viewing instructional videos and people also reported more attentiveness to ads during videos the first videos they watch.

For instance, the research revealed that mobile phones are the most popular devices for "informational, spontaneous or escapist viewing." With this in mind, the IAB recommends that marketers use 'shorter, vertical video and/or native ads," which work best on these devices. On the other hand, if a brand is looking to connect with a consumer in the evening when they are relaxing, they should consider ad formats best suited for a connected TV. Since consumers aren't looking for specific content, brands should think of this medium like broadcast and consider ads for wide audiences.

The research's revelation that consumers are more open to ads when they are watching educational videos on their desktop means that marketers should consider contextual and informative ads in this highly attentive medium.

The findings in the new IAB report give brands insights into how and in what capacity they should run video ads to consumers. The report was released the same week as the NewFronts, an event where digital platforms including YouTube, Hulu and others presented new programs and advertising opportunities to ad buyers.