Yahoo!’s Rich Ads In Search – Are Video Ads Golden?

Yahoo’s Rich Ads in Search (RAIS) combine paid search with rich media to further engage consumers within Yahoo search results. These ads provide an effective and clever approach to cross-channel marketing.

With these new ads, advertisers are given the opportunity to market their business beyond the typical paid search ad copy. Their Yahoo paid search ad is complemented with an image that can be clicked-through to a web site, custom search boxes to refine a search, or a video that can be played directly from the Yahoo results pages.

Depending on an advertiser’s overall objectives, Yahoo’s Rich “video” Ads in Search have the potential to make a substantial impact on the performance of a paid search program. The biggest impact may be for advertisers who want to generate more brand awareness.

Here’s an example of a video RAIS ad from Pedigree:

Consumers who are higher in the conversion funnel—brand awareness, brand interaction, discovery, consideration and selection—are typically in the research mode, actively seeking details about a brand or product. These searchers are the ideal targets for advertisers who use Yahoo’s Rich Video Ads in Search. Consumers can scan the ad copy and then click the video to learn more about the advertiser’s brand and its associated products/services.

Advertisers should incorporate product/service specific videos based on high-volume keywords. They should stimulate video and audio interest and inform and entertain consumers. This will help increase clickthrough to advertiser landing pages, and ultimately lead to more sales and conversions. For consumers lower in the conversion funnel, videos can help strengthen existing brand perception which leads to more consumer loyalty and retention.

One potential drawback from Yahoo’s Rich Video Ads in Search could stem from an advertiser’s failure to link the video back to its actual web site. There needs to be a continuum from the paid search ad to the video and finally back to the advertiser’s web site. Upon completion, the video should include a compelling call-to-action that lures consumers to the advertiser’s site.

The popularity for online videos continues to grow. Based on user penetration and interaction, online videos have proven to be an effective channel. According to April 2009 comScore data:

• U.S. Internet users viewed 16.8 billion online videos, an increase of 16 percent from a month earlier
• The average online video viewer watched 385 minutes or 6.4 hours of video
• The average online video duration was 3.5 minutes

With such an engaged audience, video ads—especially in conjunction with paid search—seem like the ideal way to connect with your consumers. They enable advertisers to ride the wave of video popularity and grab the attention of consumers for longer periods of time, which is quite a feat in the online space.

Additionally, video thumbnails helps advertisers stand out among their competitors in the Yahoo search results. This feature is particularly beneficial during such difficult economic times. Advertisers are trying to stretch their marketing dollars in the most efficient and impactful way; they are looking for new ways to attract and gain consumers while staying afloat among the competition.

With Yahoo’s Rich Video Ads in Search, advertisers can utilize multiple channels in one advertisement to intensify their visibility and interactions with consumers. The verdict is still out on the longevity and effectiveness of these ads. However, in the short term, the video ads appear to have earned its name, Yahoo’s “Rich” Ads in Search, providing a wealth of opportunity.