Mail.Ru Group survey: 77% of video advertising expenses are attributed to out-stream videos Group experts analyzed key trends of video advertising in 2018. The study considered investments of advertisers in various video formats, including in certain product categories.

The popularity of online video advertising is growing each year. This is due both to the development of Internet platforms and format capabilities and to the habits of users, who mostly prefer video content. A variety of formats and platforms for placing commercials makes it possible for brands to solve a number of tasks: from increasing the level of brand recognition to increasing the number of application downloads.

As the data show, the growth of investments in video advertising is ahead of the overall investment trend in online promotion. According to the study results, advertisers spent two times more on videos in 2018 than they had the year before. At the same time, the total cost of online advertising on Group projects and in the affiliate network increased by 39%. Group data shows that advertisers prefer out-stream videos among other video formats; they account for 77% of investments. The most popular format in this category is native video posts with auto start in social network feeds (92% of expenses in the out-stream category). The remaining 23% of video advertising expenses are related to in-stream videos — pre-roll videos in social networks, on Group projects and in the partner network.

Video advertising helps companies increase brand awareness and loyalty to them (image tasks), as well as motivate users to perform targeted actions (performance tasks). With the help of in-stream videos, advertisers mostly solve the first type of tasks. In the out-stream segment, 85% of investments are used to solve image tasks and 15% to solve performance tasks. In-stream and out-stream videos can effectively attract an audience to the website or increase conversion rates. Formats allow you to add a call-to-action button, which motivates users to go to the store's website/company page or download an app.

Experts analyzed how advertisers of different product categories distribute budgets between the out-stream and in-stream video in the marketing mix. It turned out that in all segments more than half of the expenses are attributed to out-stream videos, although in some categories in-stream videos are slightly inferior. For example, the highest shares of investments in in-stream videos were noted in the Medicine and Health (49%), Telecom (45%), and Media (43%) sectors. The Games (97%), Education and Work (96%), and Retail (92%) categories preferred out-stream video ads.

During the study, analysts studied the expenses within each video format — in-stream and out-stream — separately. The largest category in terms of investment was FMCG, which accounts for 26% of all investments in in-stream and 27% in out-stream video advertising. The three leaders of in-stream video advertising also included the

categories of Medicine and Health (11%) and Beauty Products (10%). In the out-stream, second place was taken by the Leisure and Entertainment (17%) category and third place by E-commerce (7%).

Video advertising is becoming more personalized. Advertisers use remarketing technologies to show video ads to those who are already interested in a product or service. The tool is used to promote 20% of out-stream and 18% of in-stream videos.

The full version of the survey is available here.