Video Ad Companies: People Love Watching Video Ads!
But video ad network Tremor Media says we and everyone we know are in a small minority. It says only 20% of Web video watchers give up and leave when confronted with the pre-rolls it serves up. Or, as Tremor is putting it in a release later today, 80% watch the ads all the way through.
Tremor says its audience sticks around because it doesn't serve up crappy use-gen video, and that "audiences are willilng to accept pre-roll advertising in exchange for content they want, on demand." And Tremor also says that its stuff is so good (it measured 65 million ad impressions across 100 different ad campaigns) that the bail-out rate didn't change if the ads were 15 or 30 seconds long.
Not to be outdone, Break Media is claiming an even higher "completion rate" -- 87% -- for its pre-rolls, which includes a whole lot of user-generated video. Break's sample was a lot smaller than Tremor's -- 5.85 million impresssions. But we're equally skeptical of both numbers. We're certainly not anti-advertising, and we will indeed sit through some pre-rolls, when we know were getting good stuff we want to see. But there's no way we do that 8 out of 10 times.
But regardless of what the number really is, pre-rolls aren't going away any time soon. Indeed, another video ad network, Brightroll, said last week it had just booked a $1 million pre-roll campaign, and that pre-rolls account for 50% of their business.
What explains their popularity? In part, it's because advertisers geniunely think they're the most effective format available. And in part, it's because pre-rolls look and feel just like the TV ads publishers and advertisers are already comfortable with. Who's going to come up with a better solution? There's a big pot of money waiting...
Or, at least, that's what most people believe.
However watching something like Dr Horrible's Sing-a-long blog via Hulu I felt the clear positioning of the advertising, the countdown timer, the balanced audio (rather than the usual compressed shouting) and low noise to signal ratio I was much less critical (though not sure my daughter needed one of the commercials - but that's more of a content rating issues)
However to watch an ad just to see a youTube video that is grainy and compressed to useless showing something that I may have 10s worth of interest in... that will continue to turn me off
I think the future of digital advertising is definitely in "opt-in" experiences with high levels of engagement rather than "push" ads, like pre-roll. Companies like Digitas and MRM have come up with some really interesting interactive digital campaigns, but the concepts are still too untested to become mainstream yet. That being said, pre-roll probably won't ever go away, especially as it continues to perform so well (for whatever reason.)
I read the survey results to say that over 80% of the users understand the role of advertising to gain free content and web applications; and to monetize support for publishers and developers. Only the grumpy, single-digit minority would expect free and ad-free.
The real issue is eCPM for publishers. 10 million views a day at $0.25 per thousand from AS is a stupid goal. Any subject that draws 10 million becomes too general. Too many general discussions create oversupply driving prices to zero.
Great content, $50+ eCPM, and thousands of focused/loyal readers in niche markets - that makes sense.
I'd also love for Tremor, et al, to take the analysis a step further and tell us what % of users actually keep the video as the top window on the screen when the ad is rolling.
Again, if I know it's a 5-second "brought to you by," I have no problem waiting. But if it's 30 seconds, I'll spend 25 of them with another window on top doing something else.
Also, the pre-rolls are so short, we (at least I) see them as just pesky interruptions that I'm being force-fed, whereas some 30 second TV ads can be quite pleasing/effective, actually because they can tell a story. Pre-rolls don't have the TiVo problem, though.
I think pre-rolls have a lot of potential though and should introduce an interactive element to engage the viewers better.
It's all in the content though. With a known entity with professional level content, the VAST majority of people are more than willing to sit through a brief message (~80+% of our pre-roll campaigns are :10 or :15 spots.) And by professional level content we don't just mean Hollywood-level studio content from sites like Hulu and network/studio sites. Local media sites, quality podcasts, etc all fall into that general level of classification.
But for the vast majority of short-form, low quality user-gen content of the YouTube-ilk, obviously that's not the case. Which is no doubt why Google's had a hard time monetizing it effectively. They haven't found a platform with the long-tail scalability to to make up for the relative lack of major brand advertising dollars like the found in search.
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