youtube-ad-pods

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

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%
2)
# 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.

READ NEXT

Want the latest insights from around the video advertising industry?
Subscribe to our State of the Screens Newsletter.

logo

Thank you

We have received your message and will be in touch shortly.

logo

Contact Us