Video ad-serving company Auditude will release a report Friday suggesting consumers have a higher acceptance of ads in premium content compared with user-generated, and online video publishers, content owners and distributors can generate higher advertising revenue as viewer acceptance increases around TV-like commercials in online videos.
In fact, completion rates of ad breaks streamed in live content jump significantly higher -- 86% compared with those within video-on-demand content at 60% -- suggesting that live content actively engages viewers who know they may not see that content again after its current availability. This makes them willing to sit through digital commercial breaks.
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 more than 11 billion ad impressions running through Auditude’s video ad-serving platform.
When it comes to professional content, Auditude’s study shows that viewers accept ad breaks in exchange for premium content, similar to watching a television show. With multiple ad breaks inserted effectively within digital video, publishers can amplify revenue opportunities for their content.
Jeremy Helfand, CEO of Auditude, said there will be more professional content coming online as viewers spend more time online. "We have to make sure to provide creative content on any device that can deliver it," he said.
Mid-roll video ads have the highest completion rates, 75%, as viewers are watching long-form content they have likely committed to seeing through. These ads are the closest comparison to the TV viewing experience. Advertisers can program them similarly to television with multiple commercials during one break per online viewing. This insight has strong potential ad-buying ramifications, given the popularity of the pre-roll ad format today, according to the study.
When comparing professional to user-generated content, viewers complete in-stream ads on professional content 68% of the time versus 52% for UGC. The study highlights the increasing linear video ad opportunities served into professional content than UGC, regardless of content length. This suggests advertisers may view the content as "safer and more brand-friendly."
Auditude supports content for sites such as Major League Baseball (MLB), Comcast, and Lionsgate.