We already know that for an advertising campaign to be successful, it is important to track how many users view your ads. Yet, many viewers may not watch the entire ad, sometimes missing the core message and CTA. Tracking the percentage of viewers who watch the ad from beginning to end makes it possible to identify successful content.
This glossary entry will explain the definition of completion rate and how to calculate it.
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In digital advertising, the completion rate is the percentage of users who complete the campaign’s desired goals, such as watching a video ad to the end. It is a key metric for evaluating the effectiveness and engagement level of video campaigns, especially in formats like in-stream or rewarded video ads. A high completion rate often indicates that the content resonates with the audience, making it a valuable indicator for optimizing creative strategies and ad placements.
Several elements can influence ad completion rates, including ad length, content quality, targeting accuracy, and platform. If the video took too long to load, the ad messaging was not engaging, or the ad was too long, it may prompt viewers to bounce.
Short, engaging, and relevant videos tend to perform better. Ads shown to the right audience at the right time, especially in skippable formats, are more likely to be completed. Additionally, user behavior and device type can also play a role in whether an ad is fully viewed.
Marketers use completion rate to assess how engaging and relevant an ad is to its audience. A high completion rate often signals strong viewer interest and effective targeting. It helps advertisers gauge the success of the creative strategy and make data-driven decisions about future campaigns.
The completion rate is calculated by dividing the number of users who completed the campaign’s goal (i.e., watching the video until the end) by the total number of users who started the service (started watching the ad).
For example, let´s compare the number of users who completed a 10-second video to the number of users who left before the video ended. In this case, if 50 users completed the video and 50 left, the completion rate is 50%.
In the case of video completion rate, the formula varies slightly:
Completion rate is commonly used to measure the effectiveness of video ad campaigns across platforms like YouTube, social media, and programmatic video networks. While completion rate can be used to measure display or search ad campaigns, it is mostly used to calculate the performance of video ads.
As with any performance metric, there are advantages and disadvantages of using it.
Pros: Calculating the completion rate is a simple and effective way to evaluate how engaging your ads are. It helps advertisers understand if viewers are watching their content all the way through and helps improve ad messaging, visuals, and relevant audience targeting.
Cons: While useful, the completion rate has limitations. For instance, it doesn’t measure the viewer’s intent to act, which makes it a weak indicator for the probability of conversions. Additionally, if you get high rates on non-skippable ads may be misleading if viewers are forced to watch the first seconds of the ad before being allowed to skip it.
While it is possible to track completion rate manually, it is simpler and more accurate to use an analytics tool or platform. For example, you can use Google Ads to track different goal types.
These ad platforms and analytics tools measure how many viewers watch a video ad from start to finish, complete a form, or subscribe to an email list, according to the ad’s goal. The tools divide the number of completed views by the number of impressions, then multiply by 100 to get a percentage. Platforms like Google Ads, Meta and programmatic demand-side platforms calculate and report this metric in their video performance dashboards.
Both metrics are used mostly to evaluate the effectiveness of a marketing campaign, usually involving direct mail, email or surveys.
Response rate measures the number of people who respond explicitly to the ad, email or link. For instance, by clicking a link, filling out a form, or making a purchase, after viewing the ad.
Completion rate, as mentioned above, tracks how many viewers watched the video ad to the end and indicates engagement. Unlike response rate, completion rate shows viewer interest.
