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Online Video Relative to Broadcast TV, Focusing on Pricing and User Engagement
 Thoughts on Pre-roll Pricing (Tod Sacerdoti)
 
 
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
 
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
 
For clients targeting clicks, pre-roll delivers five to 20 times the click-through rate of comparable banner or sponsorship units
 
multiple studies of online video have further demonstrated that pre-roll scores strongly inmeasurements of brand recall and brand lift
 
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
 
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
 
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
 
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)
 
for new product launches, video advertising will both increase search volume and increasesearch conversion (TS)Video Completion and Response Metrics (DoubleClick,Break.com)
 
 
On average, 8% of video ads generate a user interaction
 
Video ads see 3x the number of "replays" than image ads see clicks
 
Video ads see about 2/3rds view-through, with minimal variation between standard orexpandable
 
Video ad click-through is about 5x that of image ads
 
 
Break.com syndicated study with Panache (2008)
 
o
 
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%
o
 
Overlay/Ticker
 
of those who initiate the video, 78% watch at least :15 sec.
 
CTR is 0.65% on averageQuestions For a Video Campaign
 
 
Quality of inventory
o
 
Will my ads be served on any syndicated content or embedded video players off theapproved sites
o
 
Will my ads be served on UGC sites
o
 
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