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State of the Screens

YouTube begins showing twice as many ‘pre-roll’ ads

By December 5, 2018No Comments

More ads: YouTube is going to start showing back to back video ads in a single pod.

Change in YouTube video ad load:

1) Spots per pod — ↑ 100%
# of breaks — ↓ 40%

This will result in an increased ad load of ≈ 20% on YouTube.

Quote from Jim Nail — Principal Analyst @ Forrester:
“Why is online trying to replicate the TV model that we all believe is chasing consumers away from TV…This makes no sense.”

Fewer ads: NBCUniversal plans to roll its shorter ad pods into more of their primetime programming this fall.

Key findings from NBCUniversal on the impact of reduced ad load:
1) Ad Likability — ↑ 38%
2) Likelihood to search for brand — ↑ 39%

Flashback: Fewer, More Relevant Ads

Quick math:
1) Assuming $20 CPM for 30s ads
2) $0.04 per minute of advertising
3) $1.81 equals the value of 1m focus from customer
4) The break-even for an advertiser would be 1 out of every 91 ads holding the customer’s attention.

Our take: Ad loads on TV are probably high while digital (especially CTV/OTT) are low. Expect these to move in opposite directions over the short term.

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.