How ad agencies are a bottleneck in the video economy

While publishers and developers have evolved to take advantage of new digital platforms, advertisers are lagging behind. Too often, they are simply repurposing TV material rather than tailoring their creative material to the online video environment.

60% of YouTube’s video ads are skippable

Google SVP of ads Susan Wojcicki said on the company’s earnings call that 60 percent of all video ads that appear on YouTube are TrueView ads, meaning that viewers can skip it and move on to the video if it’s not relevant or interesting.

Today in Connected Consumer

TV ads are starting to go over the top. Yesterday, Adobe acquired Auditude, maker of a video ad management platform for publishers. As the provider of the leading online video streaming platform, Adobe will now be able to offer video publishers a turnkey delivery and monetization solution. The integration could help make over-the-top video delivery a more commercially viable alternative to traditional MVPD distribution. Meanwhile, CE makers could also help spur development of the OTT advertising business. On Tuesday, LG Electronics unveiled a multi-year deal with YuMe to enable marketers to place ads directly on LG connected TVs.The development of a significant OTT advertising revenue stream could make IP deliver far more disruptive to the current pay-TV business than we’ve seen thus far.

adRise brings interactive ads to your connected TV

New connected devices are making the same type of granular reporting and targetability that is available on web-based video ads also available on the TV. San Francisco-based startup adRise wants to be the platform to enable those ads to be delivered across multiple devices.

Affine Systems sells TV-like video audiences online

Affine Systems wants to make buying online video ads similar to the way TV ads are bought. The startup is making technology available to avertisers that is designed to provide larger available online inventory and stronger brand protection when serving ads against “non-premium” online video.

TubeMogul Gets Early Love for PlayTime Video Ads

Video analytics — and now advertising — firm TubeMogul has gotten some early love for its recently launched PlayTime ad platform, with more than 25 major ad campaigns since the product was announced just a few weeks ago. Now TubeMogul is looking to extend its early traction with the opening of a New York office to capture more video ad dollars.

TubeMogul’s new ad platform is aimed at providing advertisers with transparency and targetability in a market that is missing from some other ad networks. The PlayTime platform not only allows advertisers to see on which pages a video ad ran, but it also gives detailed information, such as whether the ad is click-to-play or auto-play, as well as how long an ad or a video played before a viewer clicked away. Not just that, but the platform uses TubeMogul’s analytics to help target ads to users that are most likely to view them, which can increase click-through rates by 200 to 400 percent above average video ads, with viewing times up some 30 percent.

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Online Video Viewers Want to ‘Choose Their Own Ad’

Publicis Groupe’s VivaKi unit announced today that Hulu’s Ad Selector was tops among video ad units tested as part of its “Pool” research project, suggesting that¬†Hulu might be revolutionizing the video ad market by allowing its users to select the ad they want to see.¬†

What video viewers really want is choice, the research suggests. Hulu’s Ad Selector unit gives its users the option to choose between two comparable ads — meaning that viewers are opting in to watch an ad that is somewhat relevant to their interests. Or at least, it gives them the feeling that they’re choosing an ad that’s relevant to their interests, rather than showing an ad that might be completely unrelated.

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1 in 6 Viewers Click Away During Pre-rolls

One of the maxims of online video is that everyone hate pre-roll ads, but just how much, exactly? So much that one out of every six users abandons a video stream before a pre-roll advertisement ends and the actual video begins, according to new research from video analytics firm TubeMogul.

The company took a look at how viewers interacted with more than 1.8 million video streams over a 48-hour period, and found that about 16 percent of them clicked away rather than watch a pre-roll ad. The report took a look at 10- and 30-second-long pre-roll ads that ran against short-form content, typically videos that are 3-10 minutes long. The ads shown were served from a wide range of video ad networks, including AdTech, BBE, Google (s goog) and Tremor Media.

User behavior differed depending on the type of content that was being served up. Users were more patient when waiting for content from large broadcasters, with about 11 percent clicking away during ads. However, users were much more likely to abandon videos served on newspaper and magazine publisher web sites, clicking away nearly 25 percent of the time.

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What’s Next for YouTube? Self-Serve Overlay Ads

YouTube might reach profitability this year, which means it’s time for parent company Google (s GOOG) to figure out ways to make it even more profitable. That might happen by making it even easier for small advertisers to build overlay ads to run over YouTube videos, according to a patent filing spotted by GoRumors.

In a patent application entitled “Video Overlay Advertisement Creator,” Google outlines the “methods and systems for creating video overlay advertisements suitable for use with digital videos.” The system basically allows advertisers to specify the attributes of an overlay ad through a browser-based user interface, which would be communicated back to the YouTube server. The server would then provide a preview of the ad in the advertiser’s browser. In other words, it lets advertisers build their own overlay ads, without having to hire an agency to do so.

An image of what Google has in mind is embedded below:

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Report Sends Mixed Signals on Online Video Ad Market

While representing only 1.6 percent of total online and television advertising spending, and 4.3 percent of the online ad spend total, the market for video ads over the Internet is growing and is not necessarily taking money away from other media channels, according to a report released yesterday by eMarketer.

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In the midst of a worldwide recession and an advertising decline — the broadcast upfront was down 20 percent this year — it may sound like great news. But for every dollar spent on TV, search and banner ads, less than 2 cents goes to online video ads.
The good news is that the market grew by 125 percent last year, but it will have to sustain 40 percent growth year over year to achieve the report’s projections of tripling its total share and doubling its online share by 2013, and then still be a bit player in the larger market.
The other bright spot is that for every hour of video viewed, online outlets outpaced television outlets with 17 cents in ad revenue compared with 13 cents. However, the cost of serving all the video that isn’t supported by ads significantly dilutes that 17 cents an hour. And both were down significantly from last year, a trend eMarketer predicts will continue.