LINE Video Ads – What they are and the benefits of using them

Video ads are a rapidly growing and increasingly popular advertising format due to the rise of media and apps that rely on video content. It is no different on LINE – Japan’s largest social media platform. Whether you are a seasoned marketer or just beginning to explore the world of video advertising, it is crucial to understand the billing methods and types of video ads available.

In this article, we dive into the key considerations when implementing video advertisements, including the market size, their advantages and disadvantages, and the types of video ads available.

The Size of the Japanese Video Ad Market

Video ads always feature video creatives, such as TV commercials and OOH (out of home) video ads (for example on public transport). However, they now mainly refer to ad clips you see on the web. These are usually 15-30 seconds and pop up before streaming players (e.g. Youtube).

Just like in the West, video ads are an advertising format growing in demand in the Japanese market. In March 2021, research by Dentsu revealed that the share of video advertising reached 20% of Internet advertising media expenditure. Furthermore, the results of the survey showed that it recorded a 121% growth rate compared to the previous year.

Billing formats for video ads

To maximise the effectiveness of video ad distribution, it is important to understand the different billing methods and types of video ads. Then to use them appropriately based on your advertising goals. Video ads can be divided into three billing modes:

• CPV (Cost Per View): this charges the advertiser based on the number of views the video ad receives. This is the most common billing method for video ads, and the ad fee is determined by the number of times the video is viewed during the ad display period. The criteria for counting views can vary by media, including 3-second, 5-second, and complete views. 
• CPM (Cost Per Mille): this calculates the average cost per 1,000 impressions and charges the advertiser based on the final number of impressions. For example, if the average cost per 1,000 impressions is 30 JPY and the number of impressions during the video ad placement period is 10,000, the final ad placement cost will be 10,000 x 30 JPY = 300,000 JPY. An impression is defined as the number of times an ad is displayed, so if an ad is displayed 10 times to one user, it counts as 10 impressions.
• CPC (Cost Per Click): this charges the advertiser each time a video ad is clicked. This billing method is popular for performance-based advertising as it is straightforward to see how advertisements have engaged the user through the number of clicks.

Advantages and disadvantages of video advertising

There are many pros and cons marketers should consider before deciding to run video ads.

Advantages:

• Video ads allow for greater creative flexibility and can convey more information than other web ads.
• By combining sound and movement, video ads can leave a lasting impression on users and are effective in improving brand recognition and purchasing motivation.

Disadvantages:

• The cost of producing video creatives is higher than other web ads due to the need for animation and live-action video production, music and effects, and editing.
• For business owners just starting out with web advertising, creating different video creatives may be a challenge.

Types of video ads

There are several types of video ads. Below, we discuss the characteristics of the three main types in detail:

• In-stream ads – These ads are typically found on video streaming platforms like YouTube and are divided into pre-roll, mid-roll, and post-roll ads, with some allowing users to skip and others being non-skippable. 
• Banner ads – these ads are placed in the same space as traditional image banners on a variety of websites and apps, and thus reach a wider audience. 
• In-lead ads – these ads have high visibility and are typically found between content on social media platforms like Facebook and Instagram. Platforms constantly optimise their systems to improve ads performance, for example by measuring the timing at which users are scrolling, and playing videos when more than 50% of the ad is displayed on the screen.

Many digital media platforms, like LINE, YouTube, TikTok, Instagram, as well as the GDN (Google Display Network) or YDA (Yahoo! Display Ads) networks, offer video ads to marketers. YouTube and TikTok are video-centric at their core, so in-stream ads are the most popular ad types on those platforms. 

As technology continues to evolve, the use of video advertisements is expected to grow, providing even more opportunities for businesses to reach their target audience.

With over 93 million users, LINE is the most widely-used messaging app in Japan – making it the perfect platform to promote products and services.

A LINE Official Account allows businesses to build a loyal fan base, grow brand awareness, and communicate directly with customers through a variety of features and LINE-exclusive promotions. The LINE Ads Platform allows marketers to utilise its powerful network of connected services and deliver video ads to a wide demographic of users.

As certified LINE partners, we can help you open and manage a LINE Official Account, as well as navigate you through the ads platform. Get in touch with us here, and schedule a free consultation with one of our LINE experts.