Getting more bang for your digital video ad has less to do with its length than the video content where it runs. A new study by digital video ad sales rights/ad server company FreeWheel pegs completion rates of video ads in content 20 minutes or longer -- typically in premium TV shows -- at 81%. Shorter, professionally produced videos -- 5 minutes to 20 minutes long -- only get a 62% completion rate. "Length of video content is a more significant factor of completion rates than length of the advertising," says the report. The study says 58% of digital video ads are 15 seconds in length; 26% of digital video ads are 30 seconds long. Mid-roll video ads -- those that run mostly in long TV episodes -- have a 91% completion rates. Pre-roll ads -- still the most dominant in terms of all digital video ads -- have a 67% completion rate. Post-roll ads pull in a 50% number. Pre-roll ads comprise 87% of all video ads served by FreeWheel, with 12% coming from mid-roll ads and 1% from post-roll ads. FreeWheel processed 23 billion video views and and 13 billion video ad views in 2010. Mid-roll is a rapidly growing category; a year ago it had an 8% market share. Much of this growth comes from the growth of long video content, such as premium TV shows. FreeWheel -- whose clients include Fox, Discovery Communications, Turner Broadcasting, Univision, and CBS -- says that although ad volume has doubled during the last six months of 2010, completion rates have remained stable. This is a good sign, it says, meaning that consumers recognize the value of ad-supported TV shows and video.
With the tablet computer marketplace heating up and publishers rushing to create digital editions compatible with an array of mobile devices, rival platforms are angling for their business. They promise greater capabilities and more generous revenue-sharing agreements for subscription sales. Just a day after Apple unveiled its long-awaited subscription sales system for magazine publishers -- which gives the tech company 30% of revenues from subscriptions sold via the Apple app store -- Google is touting its subscription model, using the Android operating system, Google One Pass. It gives the search giant just about 10% of revenues -- terms that are sure to find favor with publishers who are dissatisfied with Apple's more onerous demands. Google CEO Eric Schmidt described Google One Pass as a wide-ranging, multiplatform content delivery system that allows readers to "access their content on tablets, smartphones and Web sites using a single sign-on with an email and password." In addition to the revenue split, there are some other important contrasts between Google's plan and Apple's -- especially regarding key points, such as ownership of consumer data. According to Google, "with Google One Pass, publishers can maintain direct relationships with their customers and give readers access to digital content across Web sites and mobile apps." This is also a major difference from Apple, which has been much more reticent about sharing consumer information with publishers for marketing purposes. However, this week brought a small concession from Apple on the consumer data issue, as it will now allow publishers to solicit some identifying information from consumers, on a strictly voluntary basis. In another concession, Apple also said it won't take any revenue cut from subscriptions sold by publishers outside the Apple app store -- for example, on their own Web sites. Google said it has already signed up a number of publishers for One Pass, including Media General and Bonnier, which is selling subs for Popular Science on the new service.
Digital out-of-home video will enjoy another banner year in 2011, according to Adcentricity, which operates a Web-based platform aggregating DO networks serving media buyers and advertisers. Total DO revenues are expected to rise to $4.5 billion in 2013, Adcentricity predicts -- up from about $2.6 billion in 2009 and $3.1 billion in 2010, per figures from PQ Media cited by Adcentricity. Adcentricity co-founder and CMO Jeff Atley expects another round of new acquisitions, alliances -- and, yes, attrition -- in 2011, continuing trends that emerged over the last couple of years, as "young companies have been replaced or rolled into larger, more seasoned companies." The market will also expand significantly, "with major media companies now investing in DOOH," as marketers increasingly recognize its utility for reaching consumers on the go, in an ever-more fragmented media marketplace. Meanwhile, revenue growth will be led by big increases in a few key areas -- including retail venues, where consumer packaged-goods companies are spending more on in-store shopper marketing strategies to take advantage of the proximity to point-of-purchase. The last quarter of 2010 also saw significant increases in new categories, including health care and medicines and remedies. This will probably mean more spending on venues, including pharmacies and doctor's offices. The Adcentricity overview also noted DO's strengths as an advertising platform: The medium now reaches 67% of U.S. adults over the age of 18 each month, according to figures from Arbitron cited in the report.
Now with NBC under its belt, Comcast keeps shedding old technology customers -- but gaining new tech business. All this brought strong fourth-quarter 2010 results for the company. Revenues rose 7.2% to $9.72 billion, topping projections of $9.56 billion. Net income was $1.02 billion compared to $955 million a year ago. Operating income was up 11%. Stronger-than-expected results in other areas helped contribute to a mid-day 4% rise in the company's stock to $23.44. It was the first reporting period since Comcast took control of NBC, purchasing a 51% stake from General Electric. "The biggest opportunity if you move out three, four, five years is in broadcast," Brian Roberts, president/CEO of Comcast, said in its earnings call with analysts. "There's a real strength with NBC News, and there's a weakness in prime time. [But] I don't think we're going to see anything there for awhile." While basic cable customers keep declining, other businesses -- phone, digital video, and Internet -- continue to be strong. Comcast added 698,000 customers during the fourth quarter, and about 2.6 million overall -- all this against a 135,000 loss in basic cable subscribers, which was less than expected. Overall, Comcast increased its average total revenue-per-video customer 10.6% to $133.43 a month because of added services. Comcast said advertising at all its TV channels and local cable operations soared 29%. Revenue for its video, high-speed Internet and voice grew 53% increase.
Hockey coverage will meld both the NBC network and Versus on Sunday, serving as an example of the potential synergies between newly combined assets under Comcast, both on the programming and promotion front. Comcast has created a programming unit that includes NBC Sports, along with Comcast's Versus and regional sports networks. NBC Universal said nine hours of hockey will begin with a pre-game, magazine-style show on NBC. It is followed by a doubleheader on NBC, then an outdoor Heritage Classic game on Versus. Regional Comcast SportsNet channels in Boston, Chicago and Philadelphia will also play a role with their announcers appearing. The NBC Sports Group's hockey streak will be promoted across 20 NBCU channels and on 40-plus of its Web sites. Comcast's NBCU has formed an NBCUniversal Marketing Council to marshal company assets behind select initiatives. NBC's "Today" and "Nightly News" will also feature stories about hockey in America this week. Sunday's coverage will carry a "Hockey Day in America" moniker, with McDonald's as a sponsor. NBC will offer three regional games, followed by a national game at 3:30 -- all available live on NBCSports.com. Outdoor games garner considerable attention, and the Versus match-up will have Montreal playing Calgary in an Alberta stadium.
Chevrolet, with its spending odometer clicking rapidly, will serve as one of four new sponsors on this week's "Latin Music Awards" broadcast on Univision. After a slew of Super Bowl spots, the GM brand joins L'Oréal, Old Navy and Walmart as new entrants behind the show. Meanwhile, in Spanish-language broadcasting, Telemundo said it has extended the contract of legendary soccer announcer Andres Cantor, famed for his "Goooooollllll!" call. He has been with the network for 10 years. Following his stints hosting Telemundo's coverage of the 2004 and 2008 Olympics, he is likely to reprise that role next summer in London. At Univision, another sign that auto-category spending remains strong is Honda returning at the "Latin Music Awards," along with Anheuser-Busch and T-Mobile. The telco giant will have a type of integration with Mexican star Cristian Castro plugging a new device while traversing the carpet. It is also the sponsor of the show's dedicated microsite. Thursday's show will have a red carpet pre-event. Univision said last year's broadcast drew 11.3 million viewers, while topping all but NBC for the night in the 18-to-34 demo. Univision ad sales head David Lawenda stated that the show, now in its 23rd year, offers an "opportunity for our partners to connect with the fastest-growing segment of the U.S. population." Scheduled to appear are Ricky Martin, rock band Maná, singer/ songwriter Juanes and singer/actress Belinda. Performers include Pitbull and Lucero. Angélica Vale is the host along with Jaime Camil.