Interactive Video Advertising

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Interactive video advertising allows viewers to interact with the video ad on their computer screen. The main part of interactive videos are "hotspots". Hotspotting is a technique used to make certain areas or items in a video "clickable" (PermissionTV).

Reasons to Use

Interactive video provides a richer video experience to the viewer than traditional video. Interactive videos are also easily managed. They provide the viewer with HD quality video for a clear image. The content is user friendly and highly increases the retention rate of the advertisement. Along with these advantages interactive video also allows the advertiser to "target specific objects" and "increase site traffic" (VideoClix).


There are a few limitations of interactive video. One of which is some browsers don't support the content. Viewers may also have to download a plug-in the be able to access the video. Finally, the greatest limitation is that people without internet access will not be able to see these interactive videos as they are online.


A non-monetary cost of interactive video advertising is that after the video is produced, it still takes a decent amount of time to build in the interactive aspect of it. Every frame of the video must be manually tagged so it may be viewed for the length of the video. To be able to use this medium on a large-scale, the hotspotting process needs to be automated to make for easier video tagging. One company that plans to do this is Innovid (Casanova).

Advertisers have multiple options when it comes to pricing. These include:
  • CPA - cost per action
  • CPC - cost per click
  • CPL - cost per lead
  • CPM - cost per thousand impressions (VideoClix)

Reach and Frequency

Interactive videos focus more on reach than frequency. The point of the interactive advertisement is to catch and hold the viewer's attention. Reach is also accomplished through word-of-mouth for these innovative advertisements.


Scheduling for interactive video leans more toward pulsing advertisement. These videos are available for long periods of time but there may be more emphasis put on them when a new product is developed, like Gillette's hair products for men line.


There is a high impact on audiences who view interactive video. As mentioned earlier the click-through rates for interactive video are fairly high. These videos are also have a strong impact on audiences as retention of an ad greatly increases when they interact with it (VideoClix).

Audience Qualities

Pretty much anyone with an Internet connection can be targeted through interactive video advertising. As shown below, VideoClix has a wide variety of companies they advertise for. They cover anywhere from a 16-year-old buying a new pair of basketball shoes from Foot Locker to 50-year-old purchasing a new PC from the Microsoft store.


Consumers are relatively responsive to interactive video. Stats show a high click-through rate of about 50% depending on the featured product or products (VideoClix).

Advertisers Successfully Using Interactive Video

Google developed an interactive video format, Google Gadget Ads, that it will show in its Google Adsense Advertising network (Google 2007).Gillette has also been successful in using interactive video on their website. They showcase videos promoting their hair products for men. During the video the viewer can choose the outcome of the video by clicking a response when prompted.

Advertisers that work with VideoClix include: Sony, Microsoft Store, Netflix, Macy's, Zales, EB Games, Foot Locker, Amazon, RadioShack, Best Buy, Office Depot, and Yoox (VideoClix).external image videoclix.jpg

Other Interesting Qualities

Innovid, an Israeli startup, is directing advertisers in a new form of video advertising -- interactive. "Innovid sees interactive as the next 'big thing' in advertising" (Wasserman). The videos Innovid produces are canvased in an interactive mesh. This allows other emerging advertising media to be intertwined within the interactive video, such as product placements and RSS feeds; as shown in the video below.

Television has been experimenting with interactive advertising, but it is not yet a “scalable solution for advertisers”. Bolt, the interactive-TV division of the media agency, Media Storm, will be working with Food Network, WeTV, and MLB Network to incorporate interactivity into these networks (Woerz, 2009).

Works Cited