Google made the web into a superior direct mail service. Does it work for video? They are testing a service where users could elect to skip ads and ad guys would only pay for performance. Does this work? Aren't branding ads like on TV far different from informational/transacation ads on direct mail?
Google says:
* 15 second preroll results in a 15 percent abandonment rate - but down from 70 percetn a few years ago.
* creative has three times the influence on abandonment compared to spots on TV.
* 2x as many users abandon 30 second preroll versus 15.
More on the test: Google is opting-in advertisers running video campaigns via AdWords for the test. It will display a small text option in the right-hand corner of the viewer, reading, "Skip this ad." Clicking that text takes users directly to the videos they wish to play. YouTube is running the experiment on clips produced as part of its partner program with creators who have elected to include in-stream ads. Google sees an opportunity, however, to collect valuable user data that could contribute to the development of a quality-score system similar to the one it uses to determine the placement and pricing of search ads. The company is already testing user-choice pre-rolls to gain information on ad popularity. "The longterm vision is more of a pay-for-performance model," said Phil Farhi, product manager at YouTube.
The idea is that advertisers could come to Google with a video, a target-audience number and a maximum price it would pay for each view.
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