Video advertising is booming. In the US, video ad revenue hit $57.9 billion in the first six months of 2019 alone, up from $5 billion in the whole of 2016. It means that not only are consumers in love with video ads but they are also more likely to click through and go all the way through to conversion.

Optimized for maximum engagement, performance video ads can help you earn even more revenue from your video ad campaigns.

What are Performance Video Ads?

To understand performance video ads, you must first ask yourself; what is performance marketing?

Marketing Schools, a platform that provides educational options in the creative field of marketing, defines performance marketing as “a method of interactive advertising paid for based not on a fixed price, but with a variable price depending on the performance of the campaign.”

The campaign costs may vary depending on several factors, including the number of each of the following:


Performance video ads follow the same trend. Unlike traditional video ads, performance ads are measured using analytics and paid for based on overall performance.

To ensure maximum profitability, performance video ads will target specific audiences. A standard video ad typically targets – well, no one in particular. Everyone who comes across the video is a target. Performance videos are different because they target specific demographics.

How Performance Ads Can Benefit Your Ad Campaign

Though a fairly new concept that has only been in use for a few years, performance video advertising comes with a range of benefits including;

Higher conversion rates

Performance ads generate a much higher conversion rate compared to traditional ads. Why? Because the ads are tailored to target audiences. As such, the ads not only fully address the needs of the target audience but also speak directly to the target customers.

Additionally, in performance videos, even the tone of delivery and CTAs are optimized for the audience. Depending on the target demographic, advertisers can ask the viewer to click for more information, learn more, or shop now. This is different from traditional ads that primarily rely on brand recall; performance videos allow viewers to actually engage with the brand.

Easier to break into new markets

One of the reasons traditional video ads sometimes fail is that they attempt to appeal to everyone. Brands use a general language and send “moderated” messages in a bid to reach as many people as possible. It isn’t very easy to penetrate new markets and reach new audiences with generalized messages, especially in the digital age.

Performance ads are different. Rather than attempt to rope everyone in, the video will target a very specific audience. If it’s a product video, the advertiser can focus on how the product would benefit that specific audience. It’s easier to address key pain points this way, and also making it easier to break into new markets.

Adaptable for new platforms

Finally, performance ads are more adaptable to new platforms as they appear. The digital marketing space continues to expand every day. There are more than 200 medium-to-large social media networks, for instance. Then, you also have other content platforms such as webinars, e-conference channels, forums, websites, blogs, and so forth.

Compared to traditional videos, performance video ads are much easier to adapt to these marketing platforms. Whether you’re looking to establish a presence on Pinterest or TikTok, you can target narrower audiences using performance ads.

Time to Try It Out

One thing you’ll quickly discover about the performance video ads is that production costs are low while return-on-investment is much higher than standard ads. You can use amateur actors and actresses, minimize editing, and even consider DIY production without compromising the performance of the ads. Plan out who your target audience is and write the video script to maximize the connection.

Looking for help? Tired and believing there has got to be a better way?

Let’s talk about your business. With over a decade of experience leading companies and transforming lives, and a Master’s degree in Org. Development and Leadership, Mike can help you find the best way forward!

Contact Mike today to start the breakthrough!

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