Wednesday, June 6, 2007

OPA: Consumers Prefer Pre-Roll Ads

Mike Shields

JUNE 06, 2007 -

Don’t issue the death certificate for pre-roll ads just yet. The much derided, de facto standard ad unit for online video - 30-second video spots that run prior to content – are the most preferred placements for the medium among those whose opinions matter more than ad execs: consumers.

In fact, pre-roll ads --when coupled with an accompanying display ad -- are the best way to drive awareness of a online campaign, according to a new study released by the Online Publisher’s Association. And contrary to conventional wisdom, 30-second spots are the most effective way to impact a brand’s “likeability,” and to ultimately persuade users of a brand’s attributes. Plus, despite the long-stated maxim that original online video ads must be created for the medium, the average user-doesn’t care whether online video ads are new or simply repurposed from TV.

To arrive at this wisdom, the OPA tested the effectiveness of 12 video ads by surveying 1,422 Web users from April 21 through May 1 of this year. In compiling its research, the organization examined the impact of spot length, ad positioning (pre-roll versus post), type of ad and whether it featuring a companion banner placement - ultimately testing 96 different combinations to gauge the best practices for online video advertising.

While ad positioning was noted as an important attribute by consumers (with pre-roll ranking highest), it was ad length that scored as being the most influential factor when it comes to whether users responded to an ad, found the study. Generally, longer spots resonated better among respondents, despite that idea that 30s are ill-suited for a medium dominated by short-form content.

It’s content where the OPA study also challenges some general perceptions of the online video audience. For example, 45 percent of users report watching news video clips at least once a week, versus 39 who claim to watch some sort of funny video clips every seven days – despite the medium’s sophomoric, YouTube reputation. Weather is also a usage drive (31 percent say they view such content weekly), even more so than music videos (27 percent).

Generally, the OPA found that online video usage is becoming more mainstream and more diversified, as more than 40 of those surveyed said they watch videos on the Web every week, and 70 percent said they do so at least once a month. And those users are highly engaged and responsive, lending credence to the heavy demand and high CPMs common to the red-hot medium. Eighty percent of users reported seeing online video ads, with a whopping 52 percent claiming to have taken an action as a result of seeing such ads and a solid 16 percent said they made a purchase.

Perhaps predictably, it’s those news, weather and information video seekers that are more likely to respond to ads rather than those watching the latest silly clip. The study found that users visiting magazine Web sites, pure online news sites and newspaper site showed measurable higher direct response rates versus those who view user-generated content (which often does not carry any advertising at all).

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