Sponsored brands video rings up clicks and sales in the short and long run

Koen Pauwels (), Michael Peran, Zee Shah, German Schnaidt and Dauwe Vercamer
Additional contact information
Koen Pauwels: Amazon Ads
Michael Peran: Amazon Ads
Zee Shah: Amazon Ads
German Schnaidt: Amazon Ads
Dauwe Vercamer: Amazon Ads

Journal of Marketing Analytics, 2023, vol. 11, issue 3, No 2, 275-286

Abstract: Abstract Video ads are increasingly popular in digital marketing, but advertisers are unsure about how much they improve performance over static ads and which consumer response, such as unmuting or watching through the end, matters most. Using data from the online retail site Amazon.com, we apply causal inference methods to both a monthlong and yearlong time horizon and find support for our hypotheses. First, brands that invested in Sponsored Brands video (SBv) ads in addition to sponsored ads static ads had a 25% higher click-through rate (CTR) and 10% higher year-over-year sales growth. Second, individual consumer CTR depends on ad format (video vs. static), unmuting, and time watched. For audiences in 15 countries across North America, Europe, the Middle East, Asia, and Australia, we find a 17.7 times higher CTR on SBv versus static images, especially for unmuted versus muted SBv. Furthermore, the muted consumer CTR increases with the viewed video length, with a substantial increase at a viewed video length longer than 5 s. Surprisingly, the unmuted CTR remains over 3 times that of muted CTR at all viewed video lengths, showing only a CTR uptick when the video was completed. Thus, if the ad is not watched with sound for its full length (the best-case scenario), advertisers should strive for video ads that (1) are unmuted, even for a short time, or (2) play at least 5 s on mute.

Keywords: Advertising; Digital; Video; Outstream; Click-through rate; Viewed length; Sound (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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DOI: 10.1057/s41270-023-00237-3

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