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Successful digital campaigns go beyond the artistry, glamor, and sophistication of the ad creative- this is just like the front-end that everybody sees. There is also the back-end that an advertiser must get right to have a successful output. This back-end includes the nuances that drive profitable ad campaigns; correctly chosen ad format is one of those important nuances.
As a business owner or advertiser, you must know the right formats that engage best and bring the most conversion. You must also understand that there is no such thing as best ad format, as there are specialties for different campaign objectives and budgets.
The following will outline some of the recent best-performing and profitable ad formats.
Most profitable ad formats in 2022
This overview of the most profitable ad formats is based on recent case studies.
A recent report from leading white-label ad exchange SmartHub, reveals that in-app banner and in-app video ad formats generate enormous impressions and profits.
According to the research conducted over six months from October 2021 to March 2022, SmartHub partners have generated more than $250.000 with in-app video ads, and more than $110.000 with in-app banner ads.
Notwithstanding, while in-app videos generated more revenues, in-app banner ads generated more impressions over the studied period. In March, in-app banner ads generated over 120 million impressions compared to almost 42 million impressions from in-app video format.
In addition to video and banner ads, there are other popular formats that are igniting the industry and capturing users' attention.
Roman Vrublivskyi, the Head of SmartHub white-label ad exchange (marketplace), highlighted this in an interview with the following comment: "On the SmartHub platform banner, in-app video, native and CTV are the most popular and beneficial ad formats. A lot of our clients have achieved ROI up to 571% in a few months, using these ad formats for different geos - for example, Israel company Phonder. Also, during Oct 2021 - March 2022, profit of our partners with video (desktop, in-app and mobile web in sum) made up more than $1.100.000, with banner - more than $550.000. The most profitable geos on SmartHub are USA, India, Brasil, Thailand, Mexico, Vietnam".
While in-app video and in-app banner ads may be popular, marketplace owners should also explore other profitable formats to extend the advertising opportunities in their marketplaces. So, let’s start reviewing the benefits of banners and video ads and then transition to other formats that will also be popular in 2022 - native ads, CTV ads, and interstitials.
Banner ads
Banner ads are arguably the most popular ad formats because it was the genesis of digital ads, and to date, they are the top choice among advertisers. Banners can be static and or animated. They appear as images that are placed at any corner of a screen. It could be at the top, bottom, sides, or middle of a web page.
Video ads
Video ad formats have changed the dynamics of digital advertising by offering more entertaining value that keeps users engaged. According to research, 86% of businesses use video as a marketing tool, and 92% of marketers who employ it believe it is a crucial component of their marketing plan. Video ads also appeal to users. A report on ad format preference revealed that 54% of respondents would prefer to watch video marketing content.
The most popular types of video ads are in-stream and outstream ads, interstitial videos and in-feed videos. However, in-app videos are also represented by highly engaging interactive formats like rewarded and playable videos.
· Rewarded video ads: this video ad format is displayed in apps, especially mobile games, and it incentivizes viewers by offering rewards in exchange for ad watching.
· Playable video ads: This ad enables users to experience a game or app before installing it (a demo game appears as a part of the ad).
Native ads
Native ads can be banner or video ads that mimic the content and appearance of the display platform. They don't appear as advertisements at first glance because they are often contextually relevant or similar to the display platform. Native advertisements are popular since they are not intrusive and users seem more at ease interacting with them. According to a study, native ads generate 53% more views than banner ads.
CTV ads
In 2021, CTV ad spend in the United States recorded a 59.9% increase from 2020. eMarketer projects that there would be a 32% increase in 2022.
A connected TV (CTV) is any internet-enabled device that transmits or streams digital video content. Examples of CTV include smart television and other smart devices like streaming sticks or gaming consoles that connect a conventional TV to the internet. People have been increasingly replacing traditional TV viewing time with CTV viewing in recent years. According to a Roku/Harris research, Americans spend 78 more minutes streaming content than they watch cable TV.
The rise of connected TV viewing prompted a surge in CTV advertising. Of course, it only makes sense to switch marketing efforts to where there is a growing audience. As more people adopt connected TV, more advertisers invest budgets in CTV advertising. An IAB report states that in 2021, 60% of advertisers switched their Linear TV ad budget to CTV advertisements.
Interstitial ads
Interstitials are popular ads that drive user engagement and conversion. Interstitial ad typically covers the entire screen, thereby captivating the user's attention without any distractions. It can be in a video or image format and is often displayed on mobile devices and apps. However, they also work on desktop platforms.
Profitable ad sizes in 2022
Digital ad campaigns are not just about the ad format; getting the right size is also important, especially when using banner ads. Also, ad sizes for web displays are usually different from mobile ad sizes. Here are some popular and profitable ad sizes according to SmartHub's research.
1920 x 1080: This ad size generated the most profit for SmartHub's users between October 2021 – March 2022. The 1920 x 1080 can be great for video and social media ads.
320X 480: This resolution is ideal for expandable ads and works with most devices. This size can also improve the outcome of interstitial ads. This size generated over $300,000 in profits for SmartHub owners in six months.
320 X 50: This ad size is well suited for mobile campaigns and also one of the most profitable ones.
300 X 250: This one is called the medium rectangle and it is a popular banner ad size, especially on mobile.
Conclusion
Revenue creation, brand exposure, or conversion are the ultimate goals of advertising, and the correctly selected ad formats can guarantee that these goals are achieved. Today we’ve reviewed some of the most popular ad formats that can generate user engagement and profits in 2022.
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