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Online Video Relative to Broadcast TV, Focusing on Pricing and User Engagement
Thoughts on Pre-roll Pricing (Tod Sacerdoti)
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On the demand side, pre-roll video is rapidly emerging as the single most desired andhighest performing online branded ad unit on the Internet. On the supply side, publishershave been slow to integrate pre-roll and to drive traffic to their video sections, and highquality inventory continues to be fundamentally limited
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For clients targeting commercial views, pre-roll is by far the best value on a cost-per-viewbasis. In fact, in-banner video is often 10 times or more expensive on a cost-per-view basis
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For clients targeting clicks, pre-roll delivers five to 20 times the click-through rate of comparable banner or sponsorship units
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multiple studies of online video have further demonstrated that pre-roll scores strongly inmeasurements of brand recall and brand lift
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television impressions are based on overall viewing statistics -- but a significant percentageof viewers skip the ads, are out of the room or simply don't watch them. Pre-rollimpressions are user-initiated, so the actual view-per-impression ratio is much higher
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online video impressions include companion banners that stay on the page during the playof the subsequent video. This additional impression is not counted as an impression in thepre-roll CPM calculation and, if so, would decrease the CPM price of pre-roll
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online video ads are delivered to active viewers who are awaiting a piece of content thatthey personally selected. No study has quantified the difference, but the value of thisimpression is clearly higher than a passive viewer
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Nearly every DR video campaign measures ROI only on the video inventory. All industryresearch suggests that online video advertising, particularly pre-roll advertising, increasesconversion lift across all media (TS)
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for new product launches, video advertising will both increase search volume and increasesearch conversion (TS)Video Completion and Response Metrics (DoubleClick,Break.com)
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On average, 8% of video ads generate a user interaction
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Video ads see 3x the number of "replays" than image ads see clicks
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Video ads see about 2/3rds view-through, with minimal variation between standard orexpandable
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Video ad click-through is about 5x that of image ads
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Break.com syndicated study with Panache (2008)
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Pre-roll
Completion rates for :15 second pre-roll were 87%
78% of users who initiate overlay ads watch for at least 15 sec.
Click-through rates for pre-roll were over 9%
Interactive pre-roll (calls to action ontop of the video) were 10 - 12%
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Overlay/Ticker
of those who initiate the video, 78% watch at least :15 sec.
CTR is 0.65% on averageQuestions For a Video Campaign
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Quality of inventory
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Will my ads be served on any syndicated content or embedded video players off theapproved sites
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Will my ads be served on UGC sites
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