Report: Mid-Roll Video Adoption Points To TV-Like Revenue Model
Premium online content is increasingly being monetized in ways that most closely resemble traditional broadcast television, according to new research from FreeWheel, whose Monetization Rights Management platform helps content owners and distributors sell ad inventory.
Publishers are using more combinations of pre-roll, mid-roll, post-roll, and overlay ads throughout premium content as shown by ad volume growth rates.
Completion rates for video ads -- pre-roll, mid-roll, and post-roll -- have steadily risen throughout the year, with mid-rolls showing the highest average ad completion rates at 90%. Meanwhile, consumers appear to be learning over time that -- like television -- top-quality content is monetized in part with advertising.
In the third quarter of the year, pre-roll video ads remained the dominant video ad format, representing 91% of the video ad volume, while mid-rolls show the highest growth rates -- 693% since the first quarter -- and represent 8% of total video ad volume.
As ad-supported revenue models continue to prove effective, and as consumers continue to show tolerance for watching ads, mid-roll volume is expected to continue to grow, according to FreeWheel co-founder and CEO Doug Knopper.
"Clearly, the hero of this story is mid-roll adoption by both content owners and consumers," said Knopper. "The largest media companies are increasingly monetizing their most valuable content in ways that closely mimic television, and consumers are indicating that they understand that to continue to access their favorite shows, they will be exposed to ads."
Added Knopper: "These are all good trends for video and television industries and indicate that real revenue generation across devices and platforms is possible."
At present, FreeWheel claims to serve over 3 billion video ads per quarter.