The Best Ad Formats to Use in 2025
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What if you could boost your revenue by nearly 50% just by changing how you make your ads? If you're like most companies, you're leaving a lot of profit on the table by relying solely on static images. A groundbreaking study from Babson College reveals that customers are willing to pay 45% more for products showcased in video rather than static images. But here's the kicker—most businesses are using video wrong, and it's hurting their conversion rates.
In this article, I’ll show you how to properly utilize video in your ads, based on scientific research, including surprising findings about video orientation that could double your engagement rates. Plus, I’ll reveal the specific video format proven to increase view completion rates.
Understanding the Power of Video Ads
A recent study conducted by Babson College and the University of Miami found that when people were shown a premium hotel room in video format, 81% chose it compared to just 52% when they saw static images. That’s a massive difference... Think of video as giving your customers a test drive of your product or service. Instead of just staring at a parked car, they get to see it in action.
Major companies are already capitalizing on this insight. For instance, in 2017, Amazon introduced product videos across their platform because they recognized that dynamic presentations drive sales. But there’s more—this study also looked at price resistance. When a premium coffee maker was shown in video format, people were willing to pay $43.30 on average, compared to just $29.91 for the same product shown in static images.
This raises an important question: is video production worth the investment? Let’s do some quick math. If you sell a premium product for $100 and video can increase willingness to pay by 45%, you’re looking at a potential revenue of $145 per sale. Even with a modest conversion rate, the return on investment becomes clear.
How to Implement Video Ads Effectively
Let’s break down how to apply these findings to your e-commerce product pages, and later, we’ll touch on other types of businesses.
Choosing the Right Video Format
Research from Ghent University has revealed that not just any video will do. They found that vertical video ads had a 57% completion rate compared to 43% for horizontal videos. Engagement rates were also significantly higher—55% for vertical versus 45% for horizontal. Major brands, including Airbnb, have adapted to this reality by implementing seamless vertical image slideshows.
Understanding how people use their devices is crucial. Innovative companies are now creating vertical captures for software demos that feel native to mobile viewing, resulting in higher engagement and better completion rates, leading to more conversions.
Three Simple Steps to Implement Video Ads
1. Start with Your Best Static Ads: Identify your highest-performing static ads—those that sell products with emotional or experiential benefits. For instance, if you're selling hotel rooms or spas, dynamic presentations can increase preferences by nearly 30%.
2. Shoot in Vertical Format: When creating video content, shoot in vertical format first. Remember those completion rates I mentioned? People are less likely to rotate their phones, which means they’re more likely to keep watching.
3. Test with Different Audiences: Younger audiences, particularly Gen Z, process vertical video content more fluently than older generations. Tailor your formats based on your target demographic.
If you’re concerned about production costs, start with simple dynamic presentations like image slideshows. Studies show that even basic dynamic formats outperform static images in driving premium product selection.
Remember, the way you present your products can significantly impact your sales. So, get started on those video ads and watch your revenue grow-
Raj Jha
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