Opt-in video a potential remedy for ad fatigue, study finds

Dive Brief:

Eighty-one percent of consumers feel overwhelmed by the number of ads that they see, 67% said ads are not relevant to them and 85% have used an ad blocker or are open to the idea, according to results from a joint study by OpenX, the Mobile Marketing Association (MMA) and MediaMath provided to Marketing Dive.
Eight out of 10 respondents preferred opt-in video over other types of advertising, including pre-roll, mid-roll, interstitial, social or native. Among consumers, 65% would watch more ads if they were more relevant, and two-thirds would be willing to watch a 15-second ad in exchange for retailer discounts, free streaming music, in-game rewards or an hour of premium content. Two-thirds of consumers were able to recall brand ads that they saw on mobile, according to the study. Sixty percent said they had clicked on an ad, and 20% make weekly purchases based on online and mobile ads.
More than 80% of marketers say opt-in provides a better consumer experience and generates higher ROI than other formats. Sixty-five percent of marketers plan to spend more on opt-in ads next year. However, 47% of marketers have concerns about opt-in video and less than 50% are "very familiar" with the format, the study found.

Dive Insight:

Giving consumers more opportunities to opt into ads could help improve the customer experience and engagement, but the latest study makes clear that many marketers aren't clear on what the opt-in format constitutes, signaling a greater need for education.

Research continues to emphasize the value that consumers place on high-quality content and how marketers are failing to meet growing demands for relevant, personalized brand experiences. The study by OpenX, MMA and MediaMath fits in line with other findings that reveal how marketers often miss the mark when creating properly tailored online ad campaigns that can drive awareness and sales.

About 40% of consumers reported that branded messages only sometimes feel personal to them in a recent study by Periscope By McKinsey. Just 31% of those surveyed by Periscope by McKinsey said the "usually" or "always” find the brand messages they receive relevant, compared to 23% who said they never do.

As consumers are bombarded with more and more ads on digital platforms, the use of ad-blockers might continue to grow in a way that could put a greater pinch on marketers and their advertising partners' business. Ad blockers were forecast to last year cost publishers more than $15.8 billion, according to a report from OnAudience.com. Internationally, the loss of revenue from ad blocking rose to $42 billion in 2017 from $28 billion the year prior, OnAudience found.