The Best Ad Formats to Use in 2025

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.

Before I dive into the exact framework for creating high-converting video ads, I have a free mini-masterclass called Scale with Science. This will give you a shortcut to scaling your business, including my step-by-step method for implementing video ads that convert.

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-

March 19, 2025

The New Paid Ads Strategy for 2025

Pouring money into paid ads and getting crickets? You’re not alone. Many business owners waste thousands before figuring out what works. In this guide, I’ll share the simple tweaks that transformed my paid ad campaigns, taking one business from barely breaking even to generating over $2.9 million in profit.

Before we dive into the details, let’s address a common misconception: the bigger your ad budget, the more effective your campaigns will be. This isn’t always true. I’ve seen companies with huge budgets perform worse than those spending a fraction of that amount due to a huge mistake that tanks campaigns before they even get started. Let’s explore what that is and how to fix it.

The Biggest Mistake in Paid Advertising

Most business owners are stuck in the past, treating paid advertising like it’s 2010. But the landscape has changed dramatically. Video has taken over, dominating over 80% of all internet traffic. If you’re not using video ads, you’re leaving money on the table. However, there’s a catch: many people misunderstand how to use video ads effectively.

It’s not about production quality or having the perfect script. In our tests, simple videos shot on phones often outperformed expensive, professionally produced content. The key is in how you present these videos. Think about how you use social media—most people hold their phones vertically. Yet, many businesses are still running horizontal or square ads, which costs them dearly.

A 2021 study published in the Journal of Interactive Marketing showed that vertical video ads had a 57% view completion rate compared to just 43% for horizontal ads. Even better, vertical ads had a 10% higher engagement rate. Why? Because vertical video creates a frictionless experience; it’s the natural way people hold their phones. No matter your business type, using video will make a significant difference.

Steps to Create Successful Paid Ad Campaigns

Now that you understand the importance of vertical video, let’s go through a step-by-step process to create paid ad campaigns that convert.

Step 1: Directional Testing

More ideas will fail than succeed. Accept that. Your first step is to spend just $50 on what I call a directional test. This helps you eliminate the losers quickly. If you’re just starting out, test different ad ideas and hooks in your videos. The Scale with Science protocol will help you track what works and what doesn’t, allowing you to pick winners without wasting too much money.

In my last business, I used this strategy to turn $500 in spend into $2.9 million in sales by avoiding ads that would never convert. Wouldn’t you want to eliminate ineffective strategies before investing heavily?

Step 2: Statistical Testing

After identifying potential winners, refine them by testing different variations. For video ads, run three to five variations that performed well in the directional test against each other to see which produces the most revenue. You might not make money during directional testing, but as you transition to statistical testing, you should start seeing positive results.

This stage is critical because it shows what resonates with your audience and which ads convert best into revenue. Remember, you can grab a free copy of the Scale with Science diagram to help with this process.

Step 3: Revenue Testing

Once you’ve identified the best-performing ads, it’s time to scale. By filtering out ineffective ads through the first two steps, you can focus on those that drive revenue. Businesses that scale the fastest aren’t necessarily those with the biggest budgets; they are the ones that test the most variations quickly.

One of my clients tested 400 variations in a month while their competitors were still perfecting their first video. My businesses test thousands of ad variations, which keeps us ahead of rising ad costs and poor performance.

Final Step: Elevate and Scale

Once you have a winning ad, don’t stop testing. Keep refining and exploring new concepts. This iterative process helps you stay ahead of the curve.

Make sure to download your free copy of the Scale with Science protocol to assist you on this journey.

Want the full strategy? Join my Free 7-day Mini-Masterclass to learn how to grow your company faster … and with total confidence.

January 8, 2025

The Blog

Video Marketing