Why do view rates matter?

Date
March 14, 2024
READ TIME
5 Minutes
CATEGORY
Case Studies
Why do view rates matter?Why do view rates matter?

Start your career as color grading editor

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  3. Mauris commodo quis imperdiet massa tincidunt nunc pulvinar
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Choosing the right color software

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Choosing the best computer monitor

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Creating your viewing environment

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Conclusion

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Start your career as color grading editor

Id sit donec fermentum quis facilisis sagittis velit pulvinar sollicitudinat dolor aliquam risus ultricies cras tortor est lacus vitae scelerisque ac aliquam rutrum mattis mauris commodo invitaeleo odio amet mi pulvinar in sagittis quis auctor vestibulum quisque tristique sagittis non ullamcorper donec.

  1. Neque sodales ut etiam sit amet nisl purus non tellus orci ac auctor
  2. Adipiscing elit ut aliquam purus sit amet viverra suspendisse potenti
  3. Mauris commodo quis imperdiet massa tincidunt nunc pulvinar
  4. Adipiscing elit ut aliquam purus sit amet viverra suspendisse potenti

Choosing the right color software

Vitae congue eu consequat ac felis placerat vestibulum lectus mauris ultrices cursus sit amet dictum sit amet justo donec enim diam porttitor lacus luctus accumsan tortor posuere praesent tristique magna sit amet purus gravida quis blandit turpis dolor sit amet consectur.

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Choosing the best computer monitor

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  • Neque sodales ut etiam sit amet nisl purus non tellus orci ac
  • Adipiscing elit ut aliquam purus sit amet viverra suspendisse
  • Mauris commodo quis imperdiet massa tincidunt nunc pulvinar
  • Adipiscing elit ut aliquam purus sit amet viverra suspendisse
Creating your viewing environment

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Conclusion

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If you have a pulse then you’ve probably heard the phrase “stop the scroll”...

The view rate on a video ad is a metric used (alongside many others, of course) to evaluate the effectiveness of an ad. It basically tells you, as a percentage, how many of your impressions actually stopped to watch your ad, rather than just scroll by it at a million miles per hour.

So, why is that so important?

It describes the goal of capturing audience attention on social media and it’s shared by content marketers, advertisers, and instagram mimes. There’s probably more in that list but those are, for sure, the big three.

If your company, organization, or scrappy underdog Little League team (that just might win it all this year!), is satisfied with the current LinkedIn benchmarks for view rates then your spending more ad dollars than you need to.

Probably the one with the higher view rate that stands out the most... oh!

Of course, you noticed the blue triangle. That's a representation of the stopping power of a high view rate.

So, what are the benchmarks?

For audience capture and building for retargeting, a video ad is the most efficient medium since the only thing you require from your audience is for them to stop scrolling and watch 25% of your video. But the average view rate on LinkedIn for any video ad is around 15%.

Let’s say Company A is OK with average performance. If Company A made a Tinder account, every picture they’d post would be them holding a mediocre-sized fish they had just caught. They’d drive a Kia Sonnata and wear cargo shorts to weddings.

Company A, with a view rate of 15% on their video ad captures around 150 people per 1000 impressions.

Now, rather than look at another fictional company for comparison, for example, Company B, who’s Tinder profile is full of  pictures of them taming wild horses in a perfectly tailored suit…

Let’s, instead, look at our client Loxo, who achieved a view rate of +60% on the 15-second ad we created with them. That ad will capture around 600 people per 1000 impressions.

4x more audience, same ad spend when you compare average to exceptional view rates…

For the 15% ad to compete with the 60% ad, the 15% ad would need 4x more impressions. And that means 4x more ad spend.

In this simple example, Company A would need to quadruple their ad spend to match Loxo’s performance… alternatively, Loxo could reduce their ad spend by ½ and still beat Company A.

Here’s another example of one of Loxo’s ads that has a 41.99% view rate.

The thing to note here is the duration. These are short ads. Why so short?

Well, for cold audiences, you have to assume they exist on the bottom left of the “how much do they care / how much will they watch” scale. The shorter content will ultimately perform better because well… no one cares when they’re unaware.

Keep the numbers comin', right?

Let’s go back to Company A for a second. They just secured that additional adspend by selling their collection of fedoras signed by the entire cast of Duck Dynasty so they could keep spending more than $4 for a full completion of a 15-second video. And the cost is directly related to their inability to stop the scroll. Their ads aren’t standing out. The creative isn’t, well….creative enough.

The Loxo ad suite is capturing full completion views on their 15-second ads for $0.75, or 5X cheaper than Company A. 

5.3x cheaper cost to acquire an audience when you have strong view rates that lead to cheaper cost/completion costs…

So, why are view rates a must-watch metric? Because view rates tell you when you’re burning money faster than a recently abandoned Kevin McCallister.

When you combine higher view rates with short-form content you capture audiences cheaper and faster than your toughest competitors.

Let's tie a bow on it...

To get the best performance out of your adspend, the goal should be to stop the scroll more effectively and consistently through better ad creative. The better your content, the better your view rates.

With better view rates your entire funnel becomes more efficient and less costly because you’re capturing your initial audiences faster and cheaper.

Beyond better creative, it’s also important to note the effectiveness of short-form content (less than 15-seconds) for cold and early-retargeted audiences.

A viewer needs to watch at least 25% of your ad to be captured in a retargeting layer. So shorter content requires your audience to spend less time viewing your ad before they enter the next stage of your funnel, where they become cheaper to retarget.

To learn more about Video Brothers:

Feel free to book a call with our Co-founder Chandler Quintin and/or check us out on LinkedIn.

We’d love to hear what you think, and we’re here to help every B2B business demystify the ins and outs of fun video.

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