What are the Most Profitable Ad Formats and Sizes

Do you want to know which are the most popular ad formats that generate the best results for SmartHub owners? This will help you to customize and optimize your marketplace.

In our new article, we talk about popular formats, what you need to know about them, what results do they show, and how this can affect your performance and media trading.

In-app video

What is mobile video advertising?

Let’s start with what mobile video advertising is all about — all kinds of video ad units that can be served in the mobile ecosystem.

Mobile advertising video can be served in two ecosystems — in apps and on the mobile web. The mobile web ecosystem can support almost all of the ad formats commonly available on desktop computers (because mobile versions of the website are also served in browsers).

On the other hand, these are in-app video ads served in-app (rather than mobile browsers) and therefore require a different approach. Furthermore, although such video ads can provide an additional level of interactivity, in practice, some video formats work exclusively in the application environment.

Since we are talking about video ads in applications, let’s look at their most popular formats.

In-app video ad formats

Playable video. The video being played is similar to a mini version of a mobile game that appears as part of an in-app advertisement. Thus, the user has the opportunity to try a new game before installing it (the ad unit contains a link to install the game, leading to the app store).

Rewarded video. Rewarded videos are also particularly suitable for apps. These ads allow users to earn rewards in exchange for viewing ads (coins, extra points, access to in-game items, restricted content, and certain app features). Because of this value exchange, over 70% of users prioritize the experience they get with rewarded video ads.

Mobile video ad market

Video ads in apps are booming right now. For example, the size of the mobile advertising market is growing. Now it is about $11 billion. It is also expected to reach $57.85 billion by 2030.

In the meantime, such 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 advertisers who choose in-app video ads as the essential tool to promote their products or services.

The effectiveness of in-app video ads

In the first half of 2021, app video views reached 78%, meaning real people saw them.

It is essential to understand that video ads in mobile apps are more expensive than, for example, banner ads. However, the CTR they generate as a result is also much higher than banners (7.5 times higher). Thus, it would be correct to say that banners cost less but create lower click-through rates.

In-app video ads 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.

The SmartHub Experience

As mentioned, in-app video campaigns can benefit CTR, engagement, and other performance metrics. Now let’s look at our experience and talk about what can be achieved with in-app video ads on SmartHub.

Many SmartHub owners achieved impressive media trading results in 2021-2022. We found out what types and formats of traffic our clients used and what QPS plans their systems worked on. For example, while some platforms focus exclusively on in-app banners, others only concentrate on in-app mobile video ads. Some successful clients have also combined both formats in their market.

We also found that video advertising in mobile applications has become the leader in terms of profitability among formats.

Statistics in November 2021 show that SmartHub users who have 100,000 requests per second plans (QPS) have generated revenues of more than $82.000 with in-app videos.

At the same time, the in-app banner traffic generated the highest number of ad impressions. 20K+ QPS plans obtained approximately $15.000 of revenue per month.

As you can see, each ad format and traffic type has its unique benefits and characteristics that bring impressions and high revenues to all our partners. If you need advice regarding what QPS plan to choose, as well as what ad formats and traffic types to use for your efficient trading on SmartHub, feel free to ask our account manager for a free consultation.

Connected TV

What is CTV?

CTV (Connected TV) is any device that can connect to the Internet and supports digital video streaming. It is essential to understand that CTVs are not ordinary televisions, as they can broadcast content from multiple sources (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. You can watch regular TV and media streaming from the Internet on one device, thanks to CTV.

What do the statistics say? For example, in June 2021, eMarketer reported that U.S. households spent 8.3 billion hours watching CTV that month. Another study found that people spent an average of 1 hour per day in front of a CTV device.

What is connected TV advertising?

CTV is great for brands and advertisers who are optimistic about this niche. CTV offers new marketing opportunities and better campaign results than linear TV ads. In addition, CTV is becoming one of the most productive advertising channels in 2022.

In 2021, for example, more than three-quarters of advertisers have allocated money to CTV in their advertising budgets while reducing or removing investments in traditional TV advertising. In 2019-2021, US CTV advertising spending grew by more than 100%, from $6 billion in 2019 to $14.4 billion. Studies show that by 2025 this figure will reach $27.5 billion.

Surveys also show that over 80% of advertisers cite improved targeting and performance as the top reasons for switching from traditional linear TV advertising to CTV advertising.

What types of Connected TV ads are there?

Connected TV is not traditional TV, so it works differently. As a result, showing ads on CTV works very differently and may require a digital-centric approach. For example, eMarketer’s forecast says that programmatic Connected TV will account for 7 out of 10 CTV ads in 2022.

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 your ads are automatically shown to the right audience. In this case, programmatic advertising technology can help you purchase advertising assets designed for Connected TV devices.

CTV programmatic advertising also allows marketers to serve customized ads to different audiences. For example, different ads may be shown to different people during the same broadcast.

Here are some types of CTV ads:

In-stream video ads are typically integrated at the beginning or middle of video content. Most often, they are embedded in the original piece of content and cannot be skipped or removed by the viewer. The In-stream duration standard is up to 30 seconds.

Interactive advertising. This is a type of ad that encourages the viewer to take action. It is well suited for offering a discount or encouraging the audience to take specific activities (for example, making a purchase).

Home Screen Ads: These ads are displayed on the main screen of the CTV device. Traditionally, these are static images, graphics, or short videos that appear on the screen for a short time. Home screen ads often include a call to action that encourages viewers to learn more or see more details.

Сonclusions

Among the most popular SmartHub ad formats that regularly show their high effectiveness and revenues to our partners, are mobile app and CTV video ads.

In-app video ads are highly beneficial in terms of revenue, engagement, and CTR. In addition, this is a large growing segment that provides even more interactivity while viewing ads, so it will grow steadily in the future.

CTV advertising has many benefits, and SmartHub owners can take full advantage of CTV media trading on their marketplaces.

Feel free to contact our account manager for a free consultation to start your high beneficial white-label programmatic trading just in a few days.