Video Advertising Metrics: How to Measure Success

91.8% of internet users watch videos every week. 

 That’s a huge audience! 

And that’s exactly why 69% of marketers invest in video ads.

Video advertising is one of the most powerful marketing tools to get your services in front of your audience. 

You probably know where we’re going with this; if you’re not leveraging video ads, you’re missing out on a massive opportunity to reach and acquire new customers.

Now, while creating compelling corporate videos for your upcoming ad campaign is a no-brainer, it’s only half the battle. 

The next challenge you’ll face is something that’s less talked about when it comes to video marketing. Yet, it’s as essential as knowing how to create high-quality videos. 

You’ve guessed it: We’re talking about measuring your video advertising performance. Monitoring your progress using the right metrics will allow you to adjust your video advertising and improve your ROI.

So, without further ado, let’s dive into the most important video advertising metrics. And because we want to help you achieve your goals, we’ll also review how to create Meta and YouTube ads that drive results.

Key Metrics for Measuring Paid Video Advertising Success

As discussed, in paid video advertising, measuring the right Key Performance Indicators (KPIs) is essential to understand the effectiveness of your campaigns. 

Of course, the most important KPIs depend on your campaign goals, such as brand awareness, engagement, or conversions. 

But regardless, here are the most critical KPIs to track when launching a new video advertising campaign:

1. View-Through Rate (VTR)

• What it measures: The percentage of people who watched your video through to a specific point (usually 25%, 50%, 75%, or 100%).
• Why it’s important: It shows how engaging your video content is. A higher VTR indicates that viewers are interested and engaged. This makes it a key metric for gauging video quality and audience relevance.

2. Completion Rate

• What it measures: The percentage of viewers who watched the entire video.
• Why it’s important: This KPI is crucial for determining how effectively the video retains attention. High completion rates suggest that your content resonates highly with your audience. On the other hand, a low completion rate might indicate that your message isn’t resonating or that the video length is too long. Regardless, this is all good data and feedback for you to gather to optimise your campaigns. 

3. Cost Per View (CPV)

• What it measures: The cost you pay for each video view. For Google video ads, the CPV is counted when someone watches at least 30 seconds (or the duration if your video is shorter) or interacts with your video ad. And on Meta the CPV is counted when someone watches your video for at least 3 seconds. Also Meta calculates the CPV as the amount spent divided by content views. You’ll find more information on the Meta dedicated page.
• Why it’s important: CPV tells you how much you’re spending to get people to watch your content. A lower CPV means your video is driving views cost-efficiently.

4. Click-Through Rate (CTR)

• What it measures: The percentage of viewers who clicked on your video’s call-to-action (CTA) or any clickable link in the video ad.
• Why it’s important: CTR indicates how effective your video is at driving engagement and encouraging people to take action, like visiting a website or making a purchase.

5. Cost Per Click (CPC)

• What it measures: The cost of each click on the video’s CTA or link.
• Why it’s important: CPC helps you understand how much you’re spending to drive traffic or actions from viewers. A lower CPC means you’re driving more clicks for less cost.

Note, in Australia the average CPC for Google Ads is between $2 and $4. However, this can vary significantly depending on your industry. 

6. Conversion Rate

• What it measures: The percentage of viewers who completed a desired action after watching the video (e.g., signing up, making a purchase).
• Why it’s important: This KPI is vital for performance-based campaigns, as it directly ties your video to tangible business results.

Just to give you a rough idea of what a good conversion rate is, the average conversion rate across industries is 9% for Meta ads and 12% for YouTube ads. Again this varies widely across industries.

7. Cost Per Conversion (CPCV or CPA)

• What it measures: The cost for each conversion or action viewers take after watching the video.
• Why it’s important: CPCV (Cost Per Completed View) or CPA (Cost Per Acquisition) tells you how much you spend to achieve specific business outcomes like sales, sign-ups, or downloads.

8. Return on Ad Spend (ROAS)

• What it measures: The revenue generated from your video ad campaign divided by the cost of the campaign.
• Why it’s important: ROAS is critical for determining the financial success of your video advertising. A high ROAS means you’re making more money from the campaign than you spend on it.

A good ROAS for Meta Ads lies between 200% and 400%.

9. Impressions

• What it measures: The total number of times your video ad was shown to users.
• Why it’s important: Impressions help gauge the reach of your campaign and the volume of exposure your video is getting.

10. Cost Per Mille (CPM)

• What it measures: The cost of 1,000 impressions (views) of your video ad.
• Why it’s important: CPM helps measure cost efficiency, especially in brand awareness campaigns. A lower CPM means you’re reaching more people for less money.

YouTube ads’ average CPM is $3.21. What’s more, the average CPM for Instagram ads is $8.96.

11. Engagement Rate

• What it measures: The percentage of viewers who interacted with your video (likes, shares, comments, etc.).
• Why it’s important: High engagement rates show that your video content resonates with your target market. And this, in turn, leads to more organic reach through social sharing and interaction.

12. Bounce Rate

• What it measures: The percentage of users who clicked on your video’s CTA but left the landing page without taking any further action.
• Why it’s important: A high bounce rate suggests that while your video may attract clicks, the landing page or follow-up content isn’t meeting viewer expectations. Again, great feedback to get!

Tips To Optimise Your Video Advertising

As discussed, creating result-driven video advertising is about more than just producing high-quality content. 

You also need to optimise your video ads to ensure they perform well. 

And whether you’re advertising on YouTube or Meta, there are key strategies you can use to improve your results based on data-driven metrics. 

Let’s break it down:

1. Optimising Meta Video Ads

Meta (Facebook & Instagram) ads are about quickly capturing attention and keeping users engaged in a fast-paced environment. 

Here are key tips for optimising video ads on Meta:

• Hook Viewers Within the First 3 Seconds

Meta ads count a view after 3 seconds, so the opening seconds of your video are crucial. 

Use bold visuals or a provocative statement to hook your audience. If viewers aren’t captivated early, your View-Through Rate (VTR) will suffer, and you’ll lose potential engagement.

• Keep Your Content Concise

The average watch time for Meta videos is quite short. Aim for videos under 15 seconds to boost your completion rates. Higher completion rates also improve your ThruPlays (Meta’s term for videos watched for at least 15 seconds), which indicates stronger engagement.

• Leverage Testimonials for Retention

Client testimonial video ads work well for Meta platforms. That’s because they build trust and resonate with viewers, often leading to higher engagement. 

For example, when running testimonial video ads, monitor metrics like Engagement Rate and Cost Per ThruPlay to see how much attention your ads generate at a low cost.

• Optimise for Mobile

Given that 98% of Meta users are on mobile, ensure your videos are optimised for vertical viewing and are designed with mobile-friendly CTAs. This will improve your Click-Through Rate (CTR) and Conversion Rate, especially when paired with a clear, action-oriented CTA that fits into the video.

2. Optimising YouTube Video Ads

YouTube ads allow for slightly longer, more storytelling-focused videos, but the optimisation process is different from Meta. Here’s how to make your YouTube ads more effective:

• Maximise the First 5 Seconds

YouTube allows users to skip ads after 5 seconds, so it’s essential to grab their attention during the first 5 seconds. Again, start with an eye-catching scene or a thought-provoking statement to increase your View Rate (the percentage of people who watch the video beyond the skippable period).

• Use Earned Actions to Measure Success

YouTube ads can generate additional engagement through Earned Actions like shares, likes, and subscriptions. That’s because these indicate deeper user interest in your content. Keeping an eye on these metrics shows whether your ad resonates enough to prompt organic sharing and community engagement.

• Use Brand Story Videos Ads for Higher Conversions

Brand story videos that highlight your brand’s values and emotionally connect with your audience are great for increasing conversion rates. By tracking your CPV (Cost Per View), you can determine whether your brand story video ads are cost-effective and driving high-intent actions.

• Optimise for Longer Watch Times

While Meta ads thrive on short, punchy content, YouTube is more forgiving of longer videos. Aim for a length that keeps your audience watching until at least 30 seconds to improve your Watch Time and Average View Duration. 

Again testimonial or brand story video ads are particularly useful here, as they tend to hold attention longer.

Need Help with Your Video Advertising? 

Now, we understand optimising your company videos for engagement and conversions and tracking performance might sound overwhelming. Or perhaps even boring. 

That’s when hiring a professional Melbourne video production company can be beneficial. 

At DreamCube Productions, we focus on creating high-quality video content that not only captures attention but also converts viewers into customers. 

From engaging testimonial video ads to impactful corporate video ads, our team combines creativity with data-driven strategies to ensure your video content reaches its full potential.

So, if you’re ready to bring your vision to life and boost your bottom line, get in touch. We’d love to chat!