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How Video Advertising Works: Tips and Examples

Kanishka Thakur
February 18, 2025
12 min read

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Ever wondered why video ads seem to know exactly what you want? Whether it’s a 30-second YouTube ad or a story on Instagram, video advertising is everywhere, shaping buying decisions in the most engaging way possible.

But here’s the real game-changer: In-app video ads within stories and Picture-in-Picture (PiP) mode are redefining product promotions. Instead of interrupting the user experience, these ads blend seamlessly into apps, keeping engagement high while driving conversions.

From brand awareness to direct response campaigns, video advertising creates immersive experiences that stick with audiences. Let’s break down how it works, along with expert tips and real-world examples that make video ads truly effective.

What is Video Advertising?

If a picture is worth a thousand words, a video is worth a million. Video advertising is the most powerful way to capture attention, tell a story, and drive action. Whether it’s a short, engaging clip before a YouTube video, a seamless Instagram Story, or an interactive in-app ad, video marketing has transformed how brands connect with audiences.

Why does video work so well? According to Forbes, viewers retain 95% of a message when they watch it in a video compared to just 10% when reading text. That’s why businesses across industries use video ads to:

  • Increase brand awareness through engaging storytelling.
  • Demonstrate product value by showing real-world usage.
  • Boost conversions with direct, action-driven content.

But here’s the challenge! People skip ads in seconds unless they’re instantly hooked. This is where immersive in-app video ads change the game. Instead of interrupting users, video ads inside app stories and PiP mode make product discovery feel natural. The ad becomes part of the experience, not a disruption.

Think of it as a virtual showroom inside the app itself. Users can explore, interact, and even purchase without ever leaving the platform. When done right, video ads don’t just promote; they create a seamless journey from discovery to decision.

Types of Video Ads

Video ads come in various formats, each serving different marketing goals, from boosting brand awareness to driving conversions. Here are the key types:

  1. In-Stream Ads – Play before, during, or after videos on platforms like YouTube (skippable or non-skippable).
  2. Out-Stream Ads – Autoplay on websites or social media feeds without requiring a host video.
  3. Bumper Ads – Short, non-skippable ads (usually 6 seconds) designed for quick brand recall.
  4. Native Video Ads – Blend seamlessly into content, appearing as organic posts on social media.
  5. Social Media Ads – Optimized for platforms like Instagram, Facebook, and TikTok, often engaging and interactive.
  6. Shoppable Video Ads – Allow users to purchase products directly from the video.
  7. Interactive Ads – Engage viewers with clickable elements, quizzes, or choices.

Choosing the right video ad format depends on your audience, platform, and campaign goals.

How Do Video Ads Work?

From selecting the right platform to placing ads in high-engagement zones, every step influences how well an ad performs.

Here’s how video ads work in digital marketing:

  • Step 1: Targeting the Right Audience
    Ads are shown based on user behavior, interests, and demographics. Whether it’s YouTube, Instagram, or an in-app story, the goal is to match the right ad to the right person.
  • Step 2: Using Programmatic Algorithms
    Ever heard of programmatic advertising? It’s an AI-driven process that buys and places ads in real-time, ensuring brands get the best ad placements at the lowest cost.
  • Step 3: Choosing the Best Platform
    Each platform has its own unique advertising model:
    • YouTube: In-stream, bumper, and skippable ads.
    • Facebook & Instagram: Stories, reels, and carousel video ads.
    • Apps: Picture-in-Picture (PiP) ads and interactive stories for seamless engagement.
  • Step 4: Delivering a High-Impact Experience
    The best ads don’t feel like ads! They feel like part of the experience. That’s why in-app video ads inside stories and PiP mode are becoming a game-changer. Instead of waiting for users to engage, these ads blend naturally into their browsing experience, making them more engaging and less intrusive.
  • Step 5: Tracking and Optimization
    Every click, watch time, and interaction is measured. A/B testing and AI-powered analytics help brands refine their messaging, targeting, and creative elements for better results.

Why In-App Video Ads Matter More Than Ever?

Traditional ads rely on users clicking away from what they’re doing. But what if the ad itself became an interactive experience inside the app? That’s exactly what shoppable stories and PiP ads do. They keep users engaged while driving instant actions like sign-ups and purchases.

Instead of competing for attention, brands can now seamlessly integrate video ads into the user journey, making it effortless for audiences to interact, engage, and convert.

How to Measure Success in Video Ads

Measuring the effectiveness of video ads requires tracking key performance metrics that align with campaign goals. Here are the most important ones:

  1. View Count – Measures how many people watched the ad, indicating reach and awareness.
  2. Watch Time – Tracks the total time viewers spend watching, showing engagement levels.
  3. Completion Rate – The percentage of viewers who watch the entire ad, revealing its effectiveness.
  4. Click-Through Rate (CTR) – The ratio of viewers who click on the ad’s CTA, measuring conversion potential.
  5. Engagement Metrics – Includes likes, shares, and comments, reflecting audience interaction.
  6. Conversion Rate – Tracks how many viewers take the desired action (purchase, sign-up, etc.).
  7. Return on Ad Spend (ROAS) – Calculates revenue generated per dollar spent on the ad.
  8. Cost Per View (CPV) – Measures how much you pay for each view, helping assess ad efficiency.

By analyzing these metrics, businesses can refine their video ad strategy for better results.

Tips for Effective Video Advertising

Creating a video ad isn’t just about making something look good, it’s about making it work. An ad can be visually stunning, but if it doesn’t hook viewers, deliver the message, and drive action, it’s a wasted opportunity. So, how do you craft a high-converting video ad that actually gets results?

1. Start with the Audience, Not the Brand

People don’t care about brands. They care about what solves their problem, entertains them, or adds value to their lives. That’s why understanding your audience’s pain points, interests, and behaviors is the first step in effective video advertising.

2. Hook Them in the First 3 Seconds

Attention spans are shorter than ever. If your ad doesn’t grab attention instantly, it’s getting skipped. Use bold visuals, surprising openings, or a compelling question to stop the scroll. Example: “Ever wondered why 90% of people fail at [X]? Here’s why…”

3. Deliver the Message Fast

People don’t wait for a big reveal. Get to the point quickly. Whether it’s a product feature, an offer, or a story, make sure the core message lands within the first 5 seconds.

4. Optimize for Sound-Off Viewing

More than 80% of social media videos are watched without sound. If your ad relies on voiceovers alone, it’s losing impact. Use captions, subtitles, and on-screen text to ensure the message is clear even with the volume off.

5. Make It Actionable

A great video ad isn’t just about storytelling, it’s also about driving action. Use strong CTAs like:

  • "Shop Now" for product ads.
  • "Try for Free" for services.
  • "Swipe Up" for in-app conversions.

6. Leverage Interactive Elements

Static ads are a thing of the past. In-app video ads using PiP mode, shoppable stories, and interactive overlays turn passive viewers into active participants. Instead of just watching, users can tap, explore, and purchase without leaving the app.

7. Ensure Quality Across Devices

Your audience isn’t watching on just one screen. Make sure your ad looks crisp on mobile, desktop, and tablets. Test for different resolutions, aspect ratios, and playback speeds to avoid losing potential customers due to poor quality.

Instead of redirecting users elsewhere, brands can bring the shopping experience directly into the app, leading to faster conversions and better ad performance.

Just make sure they are immersive, interactive, and impossible to ignore.

Examples of Successful Video Ads

Great video ads don’t just sell, they connect, engage, and leave a lasting impact. Here are some standout examples that prove how video advertising can work when done right.

1. Brand Awareness Done Right – Coca-Cola® Masterpiece

Coca-Cola is no stranger to iconic ads, and the Masterpiece campaign is a brilliant example of how creativity can boost brand recall. Instead of a traditional product-focused approach, the ad turns famous paintings into a dynamic visual journey that seamlessly integrates the brand into an engaging story. It’s fun, memorable, and effortlessly keeps Coca-Cola in the spotlight without feeling like an outright ad.

2. Laser-Focused Messaging – Apple’s AirPods Pro

Apple understands the power of simplicity. Their AirPods Pro ad didn’t rely on flashy effects or complicated narratives. Instead, they focused on one key feature- noise cancellation. The ad brilliantly demonstrates how AirPods Pro block out distractions, using a highly visual, easy-to-grasp concept. The result? A clear and powerful message that sticks.

3. Emotion-Driven Storytelling – The Farmer’s Dog Super Bowl Ad

DYK? 92% of consumers prefer ads that feel like a story. Nothing sells better than emotion. The Farmer’s Dog Super Bowl ad used nostalgia, warmth, and sentiment to tug at viewers' heartstrings. By showing the lifelong journey of a dog and its owner, the ad created an emotional connection that went beyond just promoting pet food. It reinforced loyalty, love, and trust.

What Can You Learn from These Ads?

The best video ads follow key principles that drive engagement and action.

  • Simplicity wins: Don’t overcomplicate your message.
  • Emotion sells: People remember how you made them feel.
  • Visual storytelling matters: Show, don’t just tell.
  • Make it immersive: Let viewers interact inside the app.

How In-App Video Ads Take It Further?

Traditional video ads rely on interrupting the audience. But with in-app video ads, brands can seamlessly integrate promotions into stories, PiP mode, and interactive shopping experiences. Instead of disrupting, these ads enhance the user journey, keeping engagement levels high.

Want video ads that don’t just get watched, but actually drive action? Focus on creativity, emotional connections, and smart placements inside the app experience.

Best Practices in Video Advertising

Creating a successful video ad is about delivering the right message to the right audience at the right time. Here are some of the best practices that help businesses maximize impact.

1. Define Clear Objectives

Before anything else, ask yourself: What is the goal of this video ad? Are you aiming to increase brand awareness, drive sales, or boost engagement? Without a clear objective, even the most creative ads can miss the mark. Every great campaign starts with a well-defined purpose.

2. Understand and Personalize for Your Audience

A generic video ad is easily ignored. Personalization is key. Tailor your content based on audience behavior, preferences, and demographics. With in-app video advertising, you can target users based on real-time interactions, making ads more relevant and increasing engagement.

3. Optimize for Mobile and Different Devices

Most users consume video content on mobile, so optimizing for different screen sizes is non-negotiable. Ensure your video loads fast, plays smoothly, and adapts to different devices without losing quality. Vertical and square formats tend to perform better on mobile apps and social platforms.

4. Make Your Call-to-Action (CTA) Strong and Clear

A video ad without a compelling CTA is a wasted opportunity. Whether it’s “Shop Now,” “Learn More,” or “Try for Free,” your CTA should be direct, engaging, and aligned with your ad’s goal. Statistics show that personalized CTAs outperform basic ones by 202%.

5. Test, Analyze, and Improve

The best video ads come from constant experimentation. A/B test different versions, analyze performance metrics, and optimize based on real data. With in-app video advertising, brands can track interactions, conversions, and engagement rates in real-time, ensuring they always deliver the best experience.

6. Leverage SEO for Better Reach

Yes, SEO matters for video too. Use relevant keywords in video titles, descriptions, and tags. Optimize video metadata and consider adding subtitles to improve accessibility and searchability.

Conclusion

Video ads work best when they blend into the user’s journey, not disrupt it. The future lies in seamless, in-app experiences, where ads feel less like ads and more like engaging content.

Brands that adapt will thrive. Are you ready to transform your video advertising? Book a demo today.

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Kanishka Thakur
February 18, 2025

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