Advertisers on YouTube now have an option where they only pay when a viewer engages with the pre-roll ad. It’s a bold way to get digital marketers to move confidently into the medium since, like Google Paid Search, it’s more accountable. Here’s the YouTube blog post about this new format called “True View.”
Nalts the creator: Don't skip it please. Nalts the viewer: Yey I can skip it. Nalts the advertiser: sweet I only have to pay if they DON'T skip!?
Since most content is too short for the new option (similar to Hulu’s format, viewers get to pick a long preroll or several short ad interruptions), the more interesting of these two new offerings is the “instream” 5 & 15/30 format. You watch 5 seconds, and then you decide if you’ll continue watching the rest of the ad (15/30 seconds). That means creators/publishers will make no revenue on those who abandon. But the format will no doubt demand a higher premium (per click) for those who choose to engage.
This also means advertisers should do a better job of giving the consumer a REASON to continue. The first 5 seconds should certainly mention the brand (free exposure like the “reminder” effect of unclicked paid-search ads). But most advertisers who want deeper engagement or direct response will want to use those first 5 seconds to PITCH THE AD.
For instance, “find out why this kitten is crying” would compel me to finish the ad. Or “be one of the first to own what’s in this box” is a nice teaser. Eventually when the format is less novel, the “calls to continue” will need to be better.
So, yeah... if you choose to continue to watch the advertisement on NALTS videos, on your death bed you will receive total consciousness. So you have that going for you.
…given how different this is from what most consumers are used to, it may be a bit too early to gauge how well these ads are actually working — users may be skeptical of hitting the skip button at all because they’ve never seen it before.
It should be obvious that this is an additive option not a replacement of your traditional 15-30 second preroll. If it was my choice, I’d move to it quickly a) to learn, and b) to see if there’s a better ROI on them, c) to take advantage of the novelty factor. Then again, I’m biased. I’m making money from these. So frankly, I hope you buy whatever’s most expensive. But I hope you also get an ROI on it.
Just when you thought pre-rolls were dead, both Hulu and YouTube are embracing them in recent weeks. Hulu has officially rolled out an “Ad Selector,” where viewers can choose among several ads from a single sponsor. And YouTube, whose parent Google once chastised online-video pre-rolls for causing 75% abandonment rates, is now quietly experimenting with mandatory (unstoppable) 15-second pre-rolls before professional and amateur content.
Some brief background: When I spoke to Coke marketing executives about YouTube last year, I had the dubious role of following Hulu CEO Jason Kilar. He teased Coke marketers with an emerging ad offering that’s now officially called the “Ad Selector.” He showed how Coke could provide Hulu viewers a variety of options, where the individual could chose to watch one of several Coke commercials before enjoying a free show. I was thrilled at the model because a) it gives marketers insights, b) it provides consumers with choice, and c) the mere selection exposes the viewer to several brands.
VivaKi’s research examined 29 different ad models over 16 months, and had participation from such brandsas Allstate, Applebee’s, Capital One and Nestle Purina PetCare. Overall, VivaKi officials said the group invested 230,000 hours of research, surveying over 25 million consumers.
Guess what? The Ad Selector delivered click-through rates that averaged 106 percent higher than pre-roll ads. Plus, online ad-recall scores were 290 percent higher than pre-rolls.
In case the good folks at Hulu decide to “reconfidentialize” that PDF, here is a brief overview: The Ad Selector is an ad unit that allows the user to control their entire ad experience during video playback. At the beginning of their content play the user will be presented with 2 or 3 category options. Once a selection has been made, the user will be presented with video advertisements in the category of their choice. For example an automotive company could offer the user a selection of SUV, Truck or Coupe advertisements. If the user selects “SUV” the remaining breaks will playback commercials from the sponsor related to just to their area of interest (SUVs).
Yey for Jason and Hulu! Jason’s talk at Coke excited me because he revealed his primary goal was to provide online-video viewers with a positive experience, and wanted to ensure that advertisements did not interfere. Here’s another happyhulu moment: last night I discovered that neither iTunes nor Hulu had yet posted that night’s episode of Fringe (which I missed while flying to Chicago). Instead, I decided to catch Tuesday’s episode of “The Office,” and instinctively went to iTunes first. It was $2.99 (yipes) and iTunes wouldn’t let me watch it on my laptop (seems I’ve exceeded the 5-device rule). So I was pleased to find it free on Hulu, and welcomed the few short interstitial ads.
Do you see a skip option on this 15-second preroll on this recent Smosh video pictured below? I don’t.
Just this week I spoke with a fellow YouTube Partner who agrees with my cautious view of these: unless they command significant revenue and are proven to not cause audience drop-off, we’d prefer to turn these off. That said, neither of us has been invited to participate in this program (our options are limited to InVideo ads or adjacent banners).
15-second preroll advertisement is mandatory to watch short comedy video.
The bottom line? I’m a marketer and we need our advertising to work. I’m also a YouTube Partner and welcome models that command higher revenue for YouTube and myself. But I’m a viewer too, and I like control. Even my kids have learned to instinctively close InVideo ads (the ones that appear over the bottom 1/4 of a video), so I’m concerned about their sustainability.
My prediction is that YouTube will follow Hulu’s lead and soon give YouTube viewers a choice of ads. I would also expect that mandatory pre-rolls, if they do endure, will only work a) before highly valued video content, b) with longer formats (like 22-minute shows), and c) in very short form with 15 seconds being the maximum for 2-3 minute videos.
