Video Ads Gaining Acceptance and Revenue

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Hulu.com recently announced that the website will earn $240 million in 2010, up drastically from $108 million in 2009. And a large part of that can be attributed to a sharp increase in video ad spending. That market is expected to grow an astounding 48 percent between 2009 and 2010, according to eMarketer. Of course, Hulu has several partnerships in place with major broadcasters and video producers. But the news is just as good for the smaller advertisers, video producers and website owners.

Freewheel, a video advertising provider who works with Turner, Discover, YouTube, CBS and more, claims that completion rates for pre-roll advertising - watching the complete ad - is up about 9 percent from Q1 to Q3, 2010.

"People are getting accustomed to watching shows in a digital environment, and at the same time they are seeing more and more ads that resemble television," said Doug Knopper, CEO, Freewheel.

Mid-roll ads are completed the most, followed by pre-roll, according to Freewheel's analysis of more than 3 billion ads served in Q3. Post-roll ads are the least watched. The increase in watched ads might be due to several factors including user acceptance, an increase in total video watched online, and advertisers' gaining expertise in the medium - including shortening ad length to ensure full views.

 
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1 comment

BradT 11-24-2010 3:15 AM

I hate ads in video. This is disruptive advertising that is in-efficient. Video ads slow down the user experience and piss viewers off. Most of the time when I encounter a pre-roll ad, I close the page. I'd like to see more stats on the behavioral viewing affects on video. ~ Commented through my Website Magazine iPad App!

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