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New Data Indicates Almost Half of Online Viewers Watch Pre-Roll Ads Even When They Can Choose Not To
Two recent data points share a common, though somewhat surprising, conclusion: almost half of online viewers watch pre-roll ads to the end even when presented with the choice to opt out and skip the ad entirely. Clearly two data points aren't enough to form a real trend, but they do provide insight into how online video advertising may ultimately differ from traditional TV advertising.
The first data point came from YouTube and Scripps, via this article in Online Media Daily. Scripps ran ads for 3 different programs on YouTube using its "True View" format that allows users to easily skip past the ad. It turned out that 44% of viewers actually watched the ad through to the end (a key benefit of the TrueView model is that advertisers only pay for ad views, not for skips).
Then separately this week, video ad manager AdoTube released its Q1 2011 In-Stream Ad Format Index, which provides data on the 4.25 billion ad impressions generated across AdoTube's network (slides here). Among the key findings: 45% of viewers of its "Polite Pre-Roll" which allows skipping, watched through to the end. That was a 7% increase from the prior quarter and on par with conventional pre-roll ads. Another interesting finding was that when the Polite Pre-Roll is used, the abandonment rate for the content itself is 18% lower than when conventional pre-rolls are used, suggesting that ad choice enhances the content experience.
Categories: Advertising
Topics: AdoTube, Scripps, YouTube
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VideoNuze Report Podcast #102 - HBO GO's Opportunities - July 1, 2011
Daisy Whitney and I are pleased to present the 102nd edition of the VideoNuze Report podcast, for July 1, 2011.
In this week's podcast, Daisy and I discuss HBO GO, the online/mobile service from HBO. As I said in my review yesterday, I'm very impressed with HBO GO, and believe it is a strong new asset for the company. The big question is what exactly will HBO do with it - maintain it as a primarily defensive value-add to subscribers, or pivot to broader online distribution partnerships and possibly even direct-to-consumer initiatives? Daisy and I contemplate the options and risks.
Click here to listen to the podcast (11 minutes, 13 seconds)
Click here for previous podcasts
The VideoNuze Report is available in iTunes...subscribe today!
Categories: Cable Networks, Devices, Podcasts
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Conviva is Now Optimizing 1 Billion Streams Per Month
Conviva is now optimizing 1 billion video streams per month, as major media companies continue to realize that quality matters both to the user's
experience and also to their ability to monetize. For those not familiar with Conviva, its software integrates with video players and allows content providers to gain unprecedented insight into the quality of the video being delivered on a per user basis. Using its algorithms to determine the cause of delivery problems, Conviva's software gives content providers real-time performance visibility and preemptively remedies the issues based on a pre-configured set of policies.
Conviva CEO Darren Feher brought me up to speed on the company's progress in a call earlier this week (related, Darren presented at the ELEVATE conference a few weeks ago, a video is available after the jump). Over 60 major media companies (e.g. Disney, Fox, MLB, HBO, NFL, etc.) are now using Conviva, and Darren reports that viewers of optimized streams watch an average of 40% longer than do those viewing non-optimized streams. More time viewed obviously translates into more ad inventory, and Darren said a few large customers are now seeing an incremental 7-figure ad revenue lift.
Categories: Technology
Topics: Conviva
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HBO GO Is Terrific; The Question is How Aggressively Will It Be Deployed Longer-Term?
I've been testing HBO GO for the last couple of weeks and my reaction is overwhelmingly positive. The service is easy to navigate and incredibly responsive. Importantly, the video quality (particularly in the iPad app) is top-notch - you'll quickly forget the video is actually being delivered over the Internet and a WiFi network). And with over 1,600 pieces of content, there's no shortage of what to watch. Though I'm not an HBO subscriber, I've watched a number of HBO programs on DVD over the years (e.g. Entourage, The Wire, The Sopranos) and so the ability to get both past seasons, as well as current season episodes, in one space is highly convenient.
Obviously I'm not alone in my reactions as there have been over 3 million downloads of HBO GO just since its May 2 official release. Considering HBO has 28 million US subscribers, that's an impressive penetration level (even more so because HBO doesn't yet have agreements for HBO GO with all pay-TV providers, so some HBO subscribers can't yet access the service).
For now HBO has positioned HBO GO as a value add for existing subscribers. That's a fine place to start, but as the video landscape becomes ever more competitive, it's hard to see how HBO will be content to deploy such as strong asset mainly in a defensive manner, and not be tempted to start using it more aggressively. If and when that happens, that would be a major change in the pay-TV model. Though I questioned HBO's future in "Could HBO Be the Next BLOCKBUSTER?" HBO GO creates scenarios for how the company thrive in the online video era.
Categories: Cable Networks, Devices
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PlayLater Brings DVR Capability to the Online Video World
Ever find yourself in a situation where you want to watch online video, but you can't actually get online or can only get a sub-par connection? In these cases, it would have been convenient to pre-record the videos you want and watch them at your convenience, as is the norm with DVRs. This is the simple, but highly compelling use case that PlayLater, a new product being released in closed beta today, addresses.
With PlayLater, you first download the client software (PC-only for now) and are then presented with an interface where you can search and select your desired programs from a variety of the most-popular free and paid online video sources (e.g. Netflix, Hulu, YouTube, etc.). I gave PlayLater a try and was able to easily find and record the latest episode of "Glee" on Hulu. Because PlayLater is recording, not downloading, the program, it requires as much time as the duration of the program and episode - just like using a DVR with TV, and of course the PC must be on while recording.
Categories: DVR, Technology
Topics: MediaMall Technologies, PlayLater, PlayOn
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TED, YouTube and the Renaissance in Ad Creativity
Yesterday TED celebrated the 5 year anniversary of its "TEDTalks" being distributed online, with 500 million views to date. TEDTalks, which feature individuals speaking for up to 18 minutes on a variety of different subjects, are thought-provoking and inspiring. Using the power of online video, TED has extended its reach and influence far beyond the group of people who attend TED events in person.
More recently, TED, with the support of YouTube and others partners, has begun to focus on how advertising can be reinvented in the digital age to be more compelling and relevant. Last September, it launched "Ads Worth Spreading" (a spin on its tagline of "Ideas Worth Spreading") to recognize ads that nurture passion and encourage viewers to watch and be a part of a community. AWS seeks to move the advertising model beyond "ambushing" viewers, as has long been advertising's M.O., to instead develop a shared dialogue.
At the recent ELEVATE conference, we were very pleased to have Ronda Carnegie, TED's head of global partnerships and John Militello, Google's head of creative innovation, Americas join us for a fireside chat to discuss AWS and the role YouTube itself is playing in redefining how brands engage their audiences (video after the jump). I've written a number of times recently about breakthrough campaigns on YouTube (e.g. Perrier, The Expendables, Desperados beer); no doubt other creative ads on YouTube will follow.
Categories: Advertising
Topics: Sharethrough, TED, YouTube
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Microsoft and Nielsen Team Up to Correlate Online Ads With TV Tune-In
Microsoft and Nielsen are teaming up to launch the "Television Online Effect" pilot program, to help measure how specific online ads drive TV tune-in. The partners will leverage aggregate profile data from Nielsen's TV/Internet Fusion panel to create a target audience based on TV and online usage. Microsoft then plans to run online campaigns to this audience on its owned properties. It will then measure the tune-in effect of these campaigns. Entertainment is the first vertical in the program, which will launch by August 1st.
I can see a real opportunity for this for various reasons. The TV landscape noisier than ever, with cable TV networks flooding the market with a record amount of original programming and broadcast networks continuing to fight for audience share. Meanwhile, traditional tune-in advertising, in radio and newspaper, is less effective than ever because audiences are spending more time online. The good news is that in online, users' profiles can be accurately understand and then correlated to what TV shows they're likely to enjoy, in turn increasing the ads' ROI and the likelihood that shows find their appropriate audience.
Categories: Advertising
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Here's What the World's Largest Media Buying Agency Thinks About Online Video Advertising [VIDEO]
A couple of weeks ago at the ELEVATE: Online Video Advertising Summit, Mike Bologna, head of emerging communications at GroupM did a fireside chat with Jack Myers, Chairman, Media Advisory Group, to discuss the agency view of online video advertising. For those not familiar with GroupM, it is a unit of WPP and is the world's largest media buying agency, accounting for over 32% of global media billings. Mike is the point person on all emerging media and has a front-row seat in the unfolding drama of online video's efforts to attract traditional TV dollars.
In the 25-minute video (after the jump), Mike provides a candid view of online video's opportunities and challenges. Among other things, he clarifies what constitutes "professionally created" content, explains that online video can be viewed as more economical than TV despite its higher CPMs, discusses how the strong recent upfront actually benefits online video, shares why he just advised a client to shift 4% of its TV spending to online video, describes why a single source of measurement is critical to the industry's growth and articulates the challenges YouTube has in attracting ad dollars.
Categories: Advertising, People
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