Interactive video advertising, positioned to capture a significant share of the $191 billion digital video advertising market, is transforming how brands engage audiences by turning passive viewers into active participants through shoppable elements, personalized content, and clickable features that drive measurable business outcomes.
To understand how brands and agencies are leveraging interactive video capabilities, Padsquad, in partnership with Digiday, surveyed 90 brand and agency respondents about their current video investments, performance outcomes, strategies for interactive video campaigns.
As traditional video formats lose effectiveness in an oversaturated media landscape, brands are seeking solutions that create participatory experiences and generate actionable insights. The study found that interactive video represents a critical opportunity for advertisers to transform passive viewers into active participants, creating deeper engagement and driving measurable business outcomes through shoppable, personalized, and clickable experiences.
80% of brands report increased brand awareness and 51% achieve higher conversion rates from their video advertising efforts.
52% of respondents expect to include interactive features in at least 26% of their video ads in 2025, up dramatically from just 12% in 2024.
58% of brands currently use shoppable overlays and commerce integrations, followed by personalized dynamic creative (38%) and clickable hotspots (37%).
Find the answers in our latest State of Interactive Video report. This comprehensive study explores how brands and agencies are leveraging interactive video capabilities and the push for more measurable outcomes.