AD TECH INSIGHTS
by Roman Vrublivskyi
Posted on Jul 11, 2023
6 Most Popular Ad Formats and Sizes, And Their Effectiveness On SmartHub
by Roman Vrublivskyi
by Roman Vrublivskyi
Organizing an ad exchange implies making multiple decisions, and one of them is selecting the types of ad formats you will offer to your SSP and DSP partners. With so many options available, making a choice can be a challenging task, but our guide is here to help.
In general, the more advertising formats you offer to your partners, the better. A greater freedom of choice can motivate them to choose exactly your ad exchange. Let`s see what are the best-performing digital ad formats the ad tech has on today.
The global digital video viewership comprises over 3 billion Internet users who consume downloaded or streaming videos at least once a month.
The video has enormous potential, which companies and brands can leverage to expand their customer database with new prospects and interact with their loyal audience by implementing various types of ad formats.
What factors make video advertising so compelling, and what video formats of advertising do marketers opt for to achieve their marketing goals?
Video is a versatile marketing tool with a plethora of digital advertising formats recognized by 91% of businesses. By 2027, ad spending in video advertising is projected to account for $229.8 billion.
Mobile video advertising refers to all kinds of video ad units displayed in the mobile ecosystem: in apps and on the mobile web.
The mobile web ecosystem supports almost all ad formats commonly available on desktop computers because mobile website versions are also served in browsers.
In-app video is one of the top performing ad formats in programmatic.
Three of the most popular in-app digital ad formats are playable, rewarded, and interstitial videos.
This online ad emerges on the top or full screen when users interact with an application, suggesting they move to the destination page (for instance, to install an app) or return to the content. Interstitials may include features from rich media or playable ads.
The size of the mobile advertising market is exponentially growing. Now, it is about $11 billion and is expected to reach $57.85 billion by 2030.
This growth will soon show a compound annual growth rate (CAGR) of over 18%. At the same time, more than 90% of the population consumes video content. The number of digital video viewers is also increasing, along with the number of advertisers who choose in-app video ads as an essential tool to promote their products or services.
Video ads tend to be more effective than static ones since they are more interactive and catchy. And when they are also native, they can drive significant user engagement, which means an increase in income for you.
Native ads vs display ads? Let`s explore further. Native ads align with the overall interface, so they are less intrusive. They can come in various forms, including banners, carousel ads, etc. However, native video ads are likely to be the most efficient.
For example, you can offer your partners out-stream ads that are displayed outside the video player. In-article ads, one of the many alternatives, are placed within the body of a blog post or article. Basically, they are a subtype of out-stream ads.
It is essential to understand that video ads in mobile applications are more expensive than, for example, banner ads. However, the CTR they generate is 7.5 times higher than banners. Thus, it would be correct to say that banners cost less but create lower click-through rates.
In-app video ads, particularly the ad format examples discussed above, seem more appealing to users because they can tell a brand’s story, educate users, or provide them with in-game bonuses in exchange for viewing ads.
Devices can connect to the Internet and support digital video streaming. It is essential to understand that CTVs are not ordinary televisions, as they can broadcast content from multiple sources: the Internet, local stations, and cable TV.
CTV is a smart TV with a built-in Internet connection mechanism. A smart device that connects to a regular TV to make the TV connect to the Internet is also considered a CTV.
Game consoles (PlayStation and Xbox) and adapters (Roku, Chromecast, Apple TV, and Amazon Fire TV) are examples of smart gadgets and CTV platforms.
CTVs are becoming more popular because people love their convenience and improved entertainment value. Thanks to CTV, you can watch regular TV and media streaming from the Internet on one device.
The average time spent with CTV devices is expected to grow to about 5 hours daily.
Since marketers can easily reach their targeted audiences in the CTV space, 37% increased their CTV ad spend in 2023, with the overall CTV ad spend comprising $40.9 billion by 2027.
Another study found that 88% of American households have at least one Internet-connected TV device.
Therefore, the future of ad formats on CTV will develop even more intensively, bringing ample opportunities for advertisers.
CTV is a promising landscape for brands and advertisers who want to expand their marketing channels, enrich their audience, and leverage targeting opportunities.
When comparing linear TV and CTV, the former significantly lags behind the latter. According to Insider Intelligence and eMarketer, in 2023, US linear TV ad spend will be down 8% year on year, while CTV ad spend will be up 21.2% yearly.
The report indicates that $180 billion of total ad spending will be generated through mobile in the video advertising market, and CTV ad spending is projected to reach $29.79 billion.
Unlike linear TV, CTV offers ample opportunities and better campaign results than linear TV ads, making it a lucrative space for allocating an ad budget.
The same results we notice among the most popular SmartHub ad formats — mobile app and CTV video ads. They regularly showcase high effectiveness and revenues to our partners in terms of revenue, engagement, and CTR.
Connected TV is not traditional TV and works differently. Showing ads on CTV requires a digital-centric approach. For example, Mountain Research forecasts that 74% of CTV ad spend will be purchased programmatically.
Programmatic advertising allows you to buy and display digital ads automatically. Thanks to a real-time data-driven approach, you don’t have to manually search for channels to show your ads with software systems because the ads are automatically delivered to the relevant audience.
In this case, programmatic advertising technology helps purchase advertising assets designed for connected TV devices. CTV programmatic advertising also enables marketers to serve customized ads to different audiences. Put simply, different ads may be shown to different people during the same broadcast.
These are some types of CTV ads:
For example, the interactive ad entices viewers to scan QR codes to get a discount or install an app. This approach also suits making a purchase in one click, which demonstrates a 73% higher conversion rate.
Display banner ads are static images (equipped with text and a URL) that can be added to a header, footer, or other parts of the website. They can come in different sizes, which means that they are a rather universal ad format. Any publisher can find a place for a banner on their website, which means income for you, especially if the banners are placed in the header or sidebar.
The more traffic a website receives, the more effective display banner ads are. Therefore, consider setting a minimum traffic requirement for your SSP partners.
As for the ad format examples, here is one. A display banner ad is located on the right, in the upper part of the website, so visitors can see it without even scrolling.
Pop ads, also known as pop-up ads, are images popping up over the content of the page. They are very effective in terms of attracting attention, since users do not have to go through the content before interacting with an ad (like it may happen with banners).
Due to this, pop-up ads can help you increase income. Besides, they often cost less than other formats of advertising, meaning that they are likely to be in high demand among your DSP partners.
Basically, push advertisements work in the same way as system notifications on a smartphone or desktop. Thanks to their smooth integration into the screen, they remain highly visible but non-intrusive at the same time, which is good for user experience.
For you, offering push ads on your ad exchange platform will be beneficial as well. Such ads are effective in terms of driving engagement, so they can positively affect your revenue.
With SmartHub white-label solution, you do not need to integrate digital advertising formats on your own. Everything is already done for you, so you will be able to offer the following ad types to your partners:
Many SmartHub owners have achieved impressive results over the last few years. We found out what types and formats of traffic our clients used and what QPS plans their systems worked on.
Moreover, when setting up endpoints for demand partners, you can specify the allowed ad sizes, as well as allow or block player sizes to exclude requests that do not meet your DSP partner’s requirements. This way, your ad exchange will become more effective, which is good for your income.
In 2022, in-app video ads became the most profitable for SmartHub’s clients, and since this format is already implemented in the white-label platform, you can start earning in no time. Instead of building your own ad exchange from scratch, you can opt for the ready-made solution and get a fully working platform within a couple of days.
As you can see, each ad format and traffic type has its own unique benefits and characteristics that bring impressions and high revenues to all our partners. If you need advice regarding what QPS plan to choose and what ad formats and traffic types to use for efficient trading on SmartHub, feel free to send your query and discuss details with our account manager.
Offering the above-mentioned Internet advertising formats to your SSP and DSP partners is the way for you to ensure a stable income. However, due to the evolution of technology, the future of ad formats seems rather promising, so you should keep an eye on this process.
New ad formats will definitely enter the stage, and you should be ready to adopt them. With SmartHub, this will be much easier since the platform is continuously updated to keep up with competition.
Today is the perfect time to jump into the digital advertising space and leverage the potential of video advertising. Contact our team to discuss details and start your highly beneficial white-label programmatic trading in just a few days.
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