Online video ads perform better in content sites such as news, finance, sports, and music than in social networks or gaming sites, according to a new study by ad firm Eyeblaster.

The study found that video advertising increases engagement, doubling Dwell Time (the amount of time users engage with an ad) and increases Dwell Rate (the number of ad impressions leading to users engaging with an ad), by 20 percent.

In the last four years, the growth of video impressions has outpaced rich media growth by 60 percent. Eyeblaster's data indicates that since the beginning of 2006 to Q2 2009, video impressions have increased more than seven times in the U.S. and tenfold globally.

Highlights from the report include:
   

• In-Stream video ads have the highest proportion of ads fully played compared to any other format.
• Creative decisions play a significant role in ad performance: Rollover user-initiated video performs best followed by auto-initiated video; click user-initiated performs worst.
• Weekdays from 9 am to 5 pm is users' preferred time to watch In-Banner and Floating video ads.
• Relatively few users un-mute video ads; auto-initiated video has the highest un-mute rate.
• An increase of video length by five seconds reduces Video Fully Played rate by 2.8%, on average.

"When it comes to online advertising, savvy marketers are using video to work both ends of the consumer funnel to drive results," said Gal Trifon, CEO and Co-founder at Eyeblaster.

"Online video advertising provokes engagement and Eyeblaster's data demonstrates that users are more compelled to play with an ad that contains video. A blend of In-Stream, In-Banner and Floating ads allows advertisers to engage their target audience regardless of where they spend their time online."
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