eBay research finds video ads fail to drive sales

LONDON - Video ads are ineffective at driving online purchases, according to new research from eBay Advertising.

eBay research finds video ads fail to drive sales

In a study of 1,500 online shoppers in the UK, France and Germany, eBay found that only 7% of UK shoppers thought a video ad had prompted them to buy a product or service in the last six months.

The survey results come as major online players such as Google beef up their video ad inventory in search results and on video sites including YouTube.

eBay has been experimenting with user-initiated video ad formats. But it said sponsored links and targeted display ads prompted people to buy on the internet, while video and pop-up ads were the least popular.

The survey found that 82% of European online shoppers are spending more time shopping online in the recession.

When they're in the e-buying mindset, 60% of online shoppers are most receptive to advertising on ecommerce sites.

In contrast, just 9% of European online shoppers pay attention to an ad when they're on a social network.

In the UK, 51% of respondents are spending more time shopping online than six months ago. 91% of online shoppers spend more time researching before buying.

Ebay found that 75% of UK shoppers were more likely to spend money on home and garden items, reflecting the downturn in the housing market.

eBay recently created a hub for its UK, Ireland and pan-EMEA advertising business, under director of advertising partnerships Phillip Rinn. He said the findings had highlighted categories which eBay could target advertising around. ‘Home and gardening should be a more focused area for us.'

Rinn said eBay would also develop its behavioural and contextual ad models but that the market would be a slow burning development. ‘There is not a lot of testing at the moment as very few media owners have the data to make behavioural targeting work. Advertisers need more evidence.'

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