Pre-Roll Ads Dominate Online Video….but View-through Rate is Just 70 Percent, Study

13-03-01-03-53.jpg
By on 10/20/2009 12:05 AM @daisywhitney

NEW YORK –  Pre-roll ads, especially those for beauty and household products, continue to dominate online video ad inventory in 2009, according to a study from online video ad network YuMe.

The Redwood City, Calif firm analyzed the more than 3 billion video ad impressions it served for in-stream video over the first nine months of 2009 and found pre-roll remains the most popular ad format and
comprised anywhere from 81% to 94% of the inventory each quarter.

Usage rose throughout the year and about 93% of spots in
the third quarter were of the pre-roll variety.

Also, YuMe found viewers watch about 70% of a pre-roll ad, known as the video completion rate. The view-through
rate dipped a bit last quarter to 67%, down from 72% in the
second quarter.

"The pre-roll is
dominant because ultimately the agencies are repurposing TV creative," said Michael Mathieu, CEO of YuMe. "The challenge for us is to have the agencies spend more time on custom creative because when you do custom creative you get a significantly better experience from an engagement perspective."

In fact, the click-through rate for custom spots is about 2%,
such as video takeovers, with pre-rolls generating closer to 1%
click-through rates, the study found. YuMe plans to introduce new type of customized ad formats, he said.

The top advertising category for the first nine months of 2009 was beauty products, accounting for 18.6% of the spend, while consumer packaged goods/household ranked second with 14.7% of the spend, and autos third with 10.3% of ad dollars.

YuMe said marketers are most eager to reach people 25 to 54 with 13% of advertisers requesting inventory against that demo. Also popular were the men 18 to 34  and women 25 to 54 audience segments.

Michael will discussing the report later today at the Beet.TV Online Video Roundtable in New York.  The event will be streamed live on this site.

In March in San Francisco, Andy interviewed Michael about pre-roll advertising and industry trends.  We have republished that interview today.

Daisy Whitney, Senior Producer

Disclaimer:  YuMe is the sponsor of today's Beet.TV  event in New York. 

Recent Videos
image
Ooyala Taps Microsoft Azure for Cloud Solutions

LAS VEGAS – Ooyala, the digital video services company, which has been expanding its offering as a “TV Everywhere” platform for big broadcasters including Univision, has entered an agreement with Microsoft for its Azure, cloud-based platform, explains Jonathan Wilner, VP for Products, in ...

image
Microsoft Unveils Skype TX, a Studio-Grade Solution for Broadcasters

LAS VEGAS – As television, digital, radio and even live events come together, Skype has found a place in the middle of that convergence, connecting people worldwide via live television and digital, says Angie Hill, general manager of consumer marketing at Skype, in this interview with Beet.TV at the 2014 ...

image
UGC-Based Broadcast is #1 New Syndicated Show in U.S.

LAS VEGAS – The manpower and resources behind local news have shrunk but the time frames have not, leading to a lot of repetition in news programs, says Phil Alvidrez, executive in charge of production for RightThisMinute, a TV show that publishes online video content – and tells the story behind it – ...

image
Dolby Readying “Cinema-Like” Audio for Mobile Video

LAS VEGAS – With the advancement in second-screen and mobile technology as companies like Apple and Amazon rolled out mobile devices that could support high-definition video, consumer expectation for high-quality sound on their tablets and phones increased, says JC Morizur, senior director of professional ...

image
Live Video Streaming Format MPEG Dash Embraced by Akamai, Google, Adobe, Microsoft others

LAS VEGAS – MPEG Dash — the emerging live video format for cross-platform streaming, has picked up considerable traction over the twelve months with the participation of major players including Google’s YouTube, Microsoft’s Azure, Adobe Primetime and Akamai, explains Will Law, Chief ...

image
Microsoft says Streaming Olympics was Turning Point for its New Cloud Offering

LAS VEGAS —  Microsoft’s global, cloud-based platform for delivering video, called Azure, is gaining momentum and customer wins in the aftermath of its successful streaming of the Winter Olympics, says Bob DeHaven, GM of Worldwide Communications and Media, in this interview with Beet.TV The ...

image
Microsoft Announces Support for Fast-Emerging Streaming Standard MPEG-Dash

LAS VEGAS  – One of the top stories from the NAB Show was the accelerated support of streaming  video standard MPEG-Dash, perhaps  most notably with the announcement from Microsoft that it will support Dash with its media solutions. At NAB, we interviewed Iraj Sodagar, Principal Multimedia Architect ...

image
Making Content Marketing Accountable To Drive Business, MediaCom’s Sean Black Explains

Content marketing has always been a part of advertising, but the big difference is that content is finally accountable, says Sean Black, Managing Partner and Group Digital Director at MediaCom, during an interview for Beet.TV with Paul Kontonis, SVP Strategy & Sales at Collective Digital Studio. ...

image
Branded Video Must be Tailored to the “Venue,” Mindshare’s Migliozzi

Branded video performs best when it’s tailored properly to the platform, says Joe Migliozzi, Digital Lead at Mindshare NA, in an interview for Beet.TV with Paul Kontonis, SVP Strategy & Sales at Collective Digital Studio. “The consumers are defining the platforms for the brand. If ...

image
Digital Planning will Come to TV Ad Buying, but Not So Fast, Nielsen’s Amit Seth

SAN FRANCISCO – While measurement tools like Nielsen’s OCR allows TV ad buyers to identify online audiences to match TV buys, which are primarily for “make goods,” there are strong headwinds against changing the way that TV ads are sold via upfronts and other conventional means, ...

image
Old Fashioned, “Mad Men” TV Ad Trading Must Stop: Mediaocean’s Woollard

SAN FRANCISCO — Programmatic ad trading techniques could eliminate costs and cut time by bringing ad buying in to the digital 21st century, says one ad tech vendor. “The way that TV is bought has been the same way since the Mad Men days – I pick up the phone, I do a deal,” says ...

image
Ad Buyers Want Linear TV Sales To Go Programatic, Experts

SAN FRANCISCO — IPG’s insight agency Magna Global is using the current TV upfronts, the annual process by which TV networks sell advertising inventory for the year ahead, to push cable networks to adopt programmatic trading techniques. Says Magna Global USA president Kristi Argyilan: ”We ...

loader