• by Cheryl Kellond , December 9, 2010

The online video industry has been abuzz lately with discussions about the volume of ad loads in digital TV programming. Some assert that lighter ad loads deliver a better experience for users, and therefore are a more effective approach for advertisers looking to reach and retain online viewing audiences. Others say consumers understand and accept that fuller ad loads are a natural part of the "free" viewing experience.

Both perspectives no doubt could be supported with hundreds of data points, but ultimately, the full vs. light debate is unnecessary -- and here's why: Consumers want free TV content on more screens. It's that simple.

But to make this happen, TV broadcasters need a sustainable business model for premium, first-run content. Light ad loads using traditional TV spots cannot provide broadcasters with enough ad inventory at high enough CPMs to reach revenue parity with TV. And without revenue parity, premium content may be held back from online distribution.

With this reality in mind, this fall, most broadcasters have opened to the idea of selling more ad time in long-form digital content. CW Network was among them. It matched ad loads for its digital video programming to what it delivers for TV. What it found is that online viewers for shows such as "Vampire Diaries" and "Gossip Girl" actually watch the majority of streaming commercials in their entirety -- and watched as much of the show as they did when the ad loads were lower. Essentially higher ad loads did not have a negative effect on viewing time.

Now, it's true we don't really know if online viewers, such as those CW Network tracked, are giving any streaming ads their full attention. During these "commercial breaks" they may instead be texting a friend, dashing to the kitchen to grab a snack, or posting on Twitter (the latter can be a very good thing for broadcasters anyway). However, isn't not knowing just how "captive" your audience is the same dilemma that advertisers face when running ads on traditional TV?

This brings us to what the online video industry should really be talking about: improving the viewing experience to engage users. Running fuller ad loads is, logically, the more sustainable business model for online TV programming because it is what will drive more revenue. But what is the more sustainable viewing model? And what's the model for improving advertising effectiveness and engagement? The answer is fuller ad loads bursting at the seams with a mix of innovative ad formats that inform, delight and make viewers take notice or action.

The good news for publishers is that the CW Network's experience helps dispel the myth that viewers are turned off by full ad loads. In fact, it appears that online audiences have the capacity to absorb significantly more ad content without drop off: A recent comScore study also validated that advertising's "sweet spot" for viewers is between six and seven minutes per hour of online programming -- yet most publishers today are only serving about three minutes.

To survive and thrive, premium publishers should take action to fill this "opportunity gap" by delivering both more ads and higher-value ads. Full ad loads, innovative format mixes and superior customer experiences -- this is how publishers will capture and sustain the attention of online viewing audiences, drive revenue, and develop a long-term, profitable digital video business.