The impact of online video advertising varies considerably according to research from Dynamic Logic. The company tested 108 adverts with 125,733 repondents to discover which adverts were noticed, communicated a message and increased the likelihood of a purchase.

The best examples were noticed by 37.8 percent more than the worst and increased the likelihood of a sale by 6.9 percent.

Christina Goodman, Commnications and Marketing director at the firm, told NMK that the results showed that the industry still had a great deal to learn about how to create effective video materials. "There's still a lot of room for growth," she said, "Often they communicate quite well byt there's still a lot of learning to be done. While we wouldn't advise companies to shy away from video, it's important that they take note of what makes for an effective piece of communication."

The most noticed video ads tended to exhibit the following characteristics:

• The creative was intrinsically linked to the brand. In other words, it would be difficult for viewers to describe the ad without mentioning the brand.
• The best performing online video ads utilised the unique features of the Web to create an interactive experience with their brand. For example, a video ad for a consumable brand might include a link to find out its nutritional value or allow you to download a coupon, find a recipe and email coupons/recipes to friends. It could also include a micro-site that allows you to save and post your favourite recipes online and join discussion groups sharing helpful titbits about cooking or throwing a dinner party.
• Videos that were enjoyable and entertaining generally performed well.
• The online video content was synergistic with offline marketing efforts.
• Often, the use of companion ads with the video keeps the brand constant and provides an additional branding opportunity while the video is playing.

However, weaker-performing ads had the following failings:

• The ad did not engage and establish relevance quickly.
• Often, it wasn’t clear what was being advertised in the video. It is important to bear in mind that viewers will not want to work at understanding what is being featured and communicated — the branding and messaging should be readily apparent.
• When using video, keep in mind that many viewers may not have the audio turned on, so they may be exposed to the video ad with only the imagery and no sound. If you’re relying on a catchy jingle or song to solely communicate your brand message, viewers with the audio turned off may “miss” the point of your ad entirely or misunderstand the brand message.