SOURCE: Auditude

October 28, 2011 09:43 ET

Auditude Research Shows Online Video Commercials Drive Increased Revenue Opportunity From Positive Viewer Engagement

Video Monetization Data Reviews 11 Billion Online Video Impressions to Determine Viewer Reaction to Content Type and Length, Plus Ad Format and Placement

PALO ALTO, CA--(Marketwire - Oct 28, 2011) - Auditude (www.auditude.com), the leading provider of video advertising technology and monetization for premium content owners and distributors, today released a report showing online video publishers, content owners and distributors have greater advertising revenue opportunities as viewer acceptance increases around TV-like commercials within online video. Furthermore, completion rates of ad breaks streamed within live content jumps significantly, compared to those within video-on-demand content. The report indicates that video publishers, content owners and distributors can increase revenue potential based on viewer acceptance of ads in premium content.

The Auditude Video Monetization report shows how content type, length of video stream, ad format and placement affect viewers' response to ads. The analysis is based on a sample of over 11 billion ad impressions running through Auditude's video ad serving platform. Auditude's study reaffirms that:

  • Live vs. Video-on-Demand: Completion rates of ads on live content are significantly higher (86%) compared to video-on-demand content (60%). This suggests that live content actively engages viewers who know that they may not see that content again after its current availability and, therefore, are more willing to sit through digital commercial breaks.
  • Mid-Roll Completion: Mid-roll video ads have the highest (75%) completion rates as viewers are watching long-form content that they have likely committed to seeing through completely. These ads are the closest comparison to the TV viewing experience as they can be programmed similarly to television with multiple commercials during a single break within online viewing. This insight has strong potential ad buying ramifications given the popularity of the pre-roll ad format today.
  • Professional vs. User-Generated Content (UGC): Viewers complete in-stream ads on professional content 68% of the time, versus 52% for UGC. The study also highlights that there are more linear video ad opportunities served into professional content than UGC, regardless of content length. This suggests that advertisers possibly view this type of content as safer and more brand-friendly, and are therefore willing to buy more of it.
  • Overlays on Video: There are more overlay (non-linear) ads served within UGC vs. professional content. Overlays tend to be more intrusive and are viewed as a performance- or action-oriented product for brands willing to risk exposure on UGC content.

"Our research shows that content owners and distributors can create a highly-engaging ad experience in online video that closely resembles what is present on television. For example, the power of tune-in during digital live content can be just as impactful as on television, and maybe even more so given the interactivity of the creative execution. This provides tremendous opportunities to maximize the value of digital video content and make it available to audiences no matter how they are accessing that content," said Jeremy Helfand, CEO of Auditude. "With the growing distribution of IP-based video content on desktops, smartphones, tablets, game consoles, and other devices, we see strong cross-platform revenue opportunities within digital video. These are the types of ad experiences where content owners and marketers will find great success."

Auditude's study shows that publishers, content owners and distributors must evaluate several elements of the video ad experience, including length of individual content, placement of ad breaks, and the ad format to use. In-stream commercial breaks are the preferred ad solution for professional content while overlays are typically used for monetizing UGC. Audience behavior shows an acceptance of ad breaks in exchange for premium content, similar to a television experience. With multiple ad breaks inserted effectively within digital video, publishers can amplify revenue opportunities for their content.

Auditude's Video Monetization report examined video ad impressions across 300 publishers to better understand user viewing habits and engagement. This study encompassed thousands of ads from a wide array of advertisers.

The full report is available on Auditude's site at www.auditude.com.

About Auditude
Auditude provides video advertising technology and monetization solutions for premium content owners and distributors. Its platform enables content owners and publishers to rapidly scale the business requirements and ad serving needs around premium video content. Auditude works with marquee broadcast and professional content organizations in online video to help grow video ad revenue opportunities through superior technology. Clients include Comcast, Major League Baseball, Dailymotion, Dick Clark Productions, FoxNews, Major League Gaming, Lionsgate, UK's Channel 5, and Starz Media, among others. Auditude has been named one of the top private companies in America by Business Insider, Always On and The Hollywood Reporter. Auditude is based in Palo Alto with offices in London, Los Angeles, Chicago and New York City. For more information, please visit us at: www.auditude.com.

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