New York — Online video viewers can rejoice now — Google-owned video-sharing website YouTube on Thursday unveiled a new ad format dubbed “TrueView,” which allows users to select an ad-skipping button in the first 5 seconds and only charges advertisers for viewed ads. TrueView ad format should please users, advertisers alike.
Simply running ads with online video annoys most people without bringing much value to the advertiser. YouTube is trying to correct that by giving users the option of skipping ads, so only interested viewers will choose to watch. The new TrueView ad format also allows users to choose between ads, as Hulu.com does.
YouTube anticipates the ad format as a win-win for viewers and advertisers. The newly released TrueView video ads allow users to skip the ad in the first five seconds. The viewers can skip ads they have no interest in, and the latter gets to see who is watching the ads. Demographic and other information YouTube gathers on users can be used by advertisers to learn more about the people interested in the products or services promoted.
Moreover, advertisers are not charged if the user skips the ad; they are charged only when the user views the entire ad or 30 seconds worth of it, whatever is shorter. The new ad format is expected to offer ads in two new ways, both of which reportedly differ significantly from existing preroll ads.
The two versions of the TrueView ads are: so-called instream ads, which plays as a pre- or post-roll ads against a YouTube video, and an experimental version of an InSlate ad, which empowers viewers a choice: either watch one ad among several choices, or take regular commercial breaks. The latter format has been used by sites like Hulu.com for some time.
However, while testing the service, TrueView Video Ads – InStream, YouTube discovered view-through rates of 20% to 70%. A view-through rate indicates how many viewers opt-in to watch an ad, which is a strong indicator of the ads effectiveness. Consumers will watch ads that are relevant to them, skipping the others — benefiting viewers and advertisers both, YouTube said.
“We believe offering a cost-per-view video ad model is good for everyone: consumers choose ads that are more relevant to them; you more precisely find the audiences you want; and content creators continue to fund great content with an ad experience that is less intrusive,” Gordon Zhu, a Google AdWords representative, in a blog post. “Our experience with Promoted Videos, which you buy on a cost-per-click basis, shows that viewers will choose to watch ads that are relevant and engaging.”
The search engine company did not disclosed information on the pricing model, but industry watchers assume there is a catch that is similar to Quality Score for search ads. Advertisers who make ads that are skipped less often — or that are chosen by viewers more often — will enjoy a lower price per view.
Besides, adhering to this theory, it would be beneficial for advertisers to create more ads that are more fun to watch. Also, YouTube is making the TrueView, InStream, format available first in the United States and Canada. It is in limited testing in the United Kingdom and YouTube plans to make it available in other countries in the future. For now, advertisers have to contact a YouTube representative to buy the new format. The site plans to eventually offer it as a self-service option.
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