Video vs Display Ads: Why Video Ads are Marketing’s Future!

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30-Second Summary

30-Second Summary


  • Video marketing is becoming increasingly popular in businesses
  • Video accounts for 63% of mobile traffic and is set to rise to 75% by 2025
  • 54% of consumers would like to see more video content from brands they follow
  • Videos get more audience attention and engagement than display ads
  • Viewers retain 95% of the content from a video, making it more memorable
  • Social media posts that include a video get 48% more views than those that don’t
  • Adding a call-to-action button to a video can lead to 380% more clicks than a regular banner ad CTA button

In recent years, we have seen a tremendous increase in investment and production of videos when it comes to businesses. The term “video marketing” has become a buzzword for all good reasons.
Take a look at these statistics:

We could go on with these statistics. But the end all is that video marketing will be a game-changer in the coming years, and it’s time to hop on to this trend.
On to the question that’s on all of our minds.

Why are video ads becoming more popular than display ads?

While display ads are still prominent, many marketers and businesses realize that video ads hold more potential. Here’s one success story from Isaac, whose business has garnered 50 million views across YouTube, TikTok, and Instagram.
Video ads as marketing's future
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Below are six reasons we feel that video ads are more effective:

  •  You get more audience attention. Suppose you’re scrolling through Instagram and see a display ad by a beauty brand. You probably scroll through it or spend a couple of seconds on it. But if the same brand has posted a video ad with an engaging hook like “Re-create Alia Bhatt’s makeup look using just two products,” probably a higher percentage would end up watching this video for more than 30 or even 60 seconds.
  • You can conjure stories. Everyone loves stories, and videos allow you to share those stories in a better way. Be it about putting your product in action, showcasing how your product features are helping different companies, or demonstrating your brand values; you can do a lot more with videos.

For example, Taco Bell created a great video ad with an engaging story when they launched its Nacho fries.
Embed: Taco Bell Nacho fries ad
This ad helped them create history with one of the best food launches, and they ended up selling a whopping 53 million nacho fries in the first five weeks.

  • People are likely to remember your brand because of videos. According to research, viewers retain 95% of the content from a video as opposed to only about 10% from text. This means prospects remembering your brand or key video information is higher than if you just show them a display ad.

Differences in ad recall vs control
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  • Social users love video. With the advent of content formats like reels, people are getting more drawn toward video content. In fact, social media posts that include a video are seen to get 48% more views than those that don’t. In such a scenario, making video ads for social media can give you the boost you require.

For example, this Facebook video ad by Chatbooks has amassed over 100 million views.
Embed: Facebook Chatbooks video ad

  • Video ads get more engagement. According to a study, video ads see 7.5X higher CTR than display ads. Many businesses are even making use of UGC (User Generated Content) in their ads to reach more people and build credibility for their brands. Here’s how one agency used these UGC video ads to generate sales. Here’s how one agency used these UGC video ads to generate sales with expert Facebook ads service.

Tweet regarding video ads
Image source

  • Videos help influence purchasing decisions. According to a survey, 95% of respondents said video played an important role in their purchase decision. In fact, KISSmetrics found that when they added a CTA button in their video, they received 380% more clicks than a regular banner ad CTA button. This becomes even more important if you run a SaaS or complex business, as video ads help bring more clarity than picture ads.

For example, Spotify created this catchy video ad to promote its new features and grow its paid subscription base. During this campaign, their paid subscribers increased by 66%.
Embed: Spotify video ad
Now that we have established that video ads are more effective in generating the results you want, we can’t deny that they can be a costly solution.
After all, it takes much more time, money, and other resources to create a 30 or 60-second video than it takes to create a simple banner or picture ad on Canva.
But it’s also important to run a cost-benefit analysis because, most times, the investment you make in these video ads gives you a better return.
If you need assistance navigating this analysis, consulting with a friendly Google Ads agency account manager can provide valuable insights tailored to your business objectives.

How to get started with video ads?

Video will be the future; there’s no doubt about it. So, how do you prepare for this? Here are three ways to get started with video ads that don’t require a huge investment.

  1. Instead of featuring people in your video ads, you can start by showing your product or animating.
  2. Make use of popular video templates available on tools like Vimeo and InVideo. You can change some of their elements to suit your brand style and tone.
  3. Leverage UGC. One, you don’t have to spend resources to create this content; second, this kind of content builds a better bond with the audience.

Wondering what kind of video ads will generate results? Or how to create different ads for different platforms? Get in touch with our team at Intent Farm.

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About the Author
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Nikhil Dhoot

Introducing Nikhil Dhoot, a digital marketing dynamo having an analytical mindset with a passion for performance marketing. With unmatched expertise in marketing strategies, funnel optimization, and data analysis.
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