The video evolution is linear for nascent online video advertising. Many media advertising companies are self-reliant on using a television advertising model for Internet video too, infamously known as the preroll. With online ad spending set to overtake television spending, and video advertising itself set to increase 55% in 2009, many are set to exploit this market as a significant revenue stream.
However, an easy search on Google reveals the distaste by users when forced to watch prerolls before their video content. With many studies concluding opposite results about prerolls, even Google got into the act claiming 75% abandonment rate for prerolls over 15 seconds, against 10% loss for using textual overlays.
The crux of the matter is choice. The traditional preroll slapstick from television to online video completely shatters the user experience. Prerolls are interrupting, and frankly annoying for the user because they’re forced upon you. With no choice in the matter, users leave your site with resentment. As any marketer knows, you want to avoid cognitive dissonance.
Interactive web video, if designed correctly, gives the user a choice to interact; and in turn, their interaction increases their engagement with your product. Digital marketing budgets have top priority for online video with a growing preference for increased sophistication and interactivity within capabilities video can provide. Most importantly, companies are recognizing a non-linear approach to video advertising, forgoing the preroll for interactivity within the video. This video experience is set to become the most effective medium.
Currently online platforms for streaming video are noticing something very interesting. Statistics on preroll user drop off rates are singing a different tune when content quality is considered. In the UK, high quality video content—like sports highlights—commands a £15-40 CPM. In regards to high quality video content, user drop off rates for prerolls actually decrease by considerable margins.
In the American market, Hulu.com—a web video platform for syndicated television shows, movies, and clips of said productions—are seeing user drop off rates decrease considerably when choice is given to the user. For high quality content, when users are given the option to see a preroll before a two-hour movie, drop off decreases. However, it’s mixed results when considering shorter videos.
Quick.tv is spearheading interactive video, providing a superior high quality video platform for video content providers to forgo the preroll, and instead engage the user through sophisticated and interactive ways using interactive overlays, rewarding the user experience with choice to interact. The preroll is prehistoric.
Jeff Atkinson
Can you tell me who did your layout? I’ve been looking for one kind of like yours. Thank you.
March 23rd, 2009
Armin
Hey Jeff,
Our temporary theme is one called ‘Geometric’. It’s from the guys over at WooThemes: http://bit.ly/wp-theme
Hope this helps.
March 23rd, 2009
Michael
Timely article, given that TechCrunch did this article about Hulu hitting 10 million viewers in Feb.
http://tinyurl.com/hulu10
Having personally used Hulu quite a bit, I know that users are sometimes (at random it seems) offered to watch a 3-minute or so “Pre-roll” from a sponsor… which means you won’t see ANY other commercials during your entire Hulu viewing for that episode or movie. I know media companies need to have a way to sell advertising, so you come to expect commercial interruptions over the course of your video.
I’ll be the first in line to say that getting ALL the commercial breaks out of the way by just watching a lengthy “pre-roll” is what I prefer. I just walk away or check e-mail for 3 minutes and then come back to watch a full hour or two of un-interrupted video…works great.
Michael
P.S. Adii and his team over at Woo are awesome, there are some great themes available that I’ve put to good use. So +1 for WooThemes.
March 23rd, 2009
David King
I say go for a branded watermark – can’t beat a bit of plain old subliminal advertising!
March 23rd, 2009
quicktv
Our latest blog post: “Preroll: It’s Prehistoric” – http://bit.ly/OliZ – Comments & suggestions welcome. Community rocks! ^AT
This comment was originally posted on Twitter
March 23rd, 2009