Consumer Packaged Goods and Retail Lead Online Video Advertising

The verticals that do the most advertising in premium online video are consumer packaged goods (CPG) at 22 percent, retail at 18 percent, and financial services at 17 percent. That data comes from the Q1 2015 Video Monetization Report issued by FreeWheel, a company that specializes in online video monetization.

FreeWheel2014Q2What makes the high amount of CPG video advertising interesting is that CPG does little spending in other digital ad types, such as search, display, and social. There, CPG makes up only 6 percent of ad revenue.

The discrepancy demonstrates how advertisers view online video as different from other online ad types, FreeWheel notes. They turn to video to build a brand, while using others to generate leads or move consumers further down the marketing funnel to a purchase.

This last year has been a strong one for online video, the report shows. Video views are up 40 percent year-over-year, while video ad views are up 43 percent. Of all video types, live has seen the strongest growth, leading to a 140 percent increase in ad views on live streamed content.

Viewers still prefer watching video on a desktop or notebook computer, but mobile is coming on strong. In Q1 2015, 67 percent of video ad views were on desktops or notebooks, 17 percent on smartphones, 8 percent on tablets, and 8 percent on set-top boxes, gaming consoles, or connected TVs.

For more stats on the online video market, download the full report for free (registration required).

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