Monday, 6 December 2010

Skipping Ads on YouTube

As reported by Information Week, YouTube has launched a new service, called TrueView, which allows users to select an ad-skipping button in the first 5 seconds and then only charges advertisers for viewed ads.

The Google-owned YouTube site added the service last week and aims to reduce the frustration of users who don't want to be disrupted by ads, and to reduce the cost to advertisers to that they only pay for the adverts that are shown. The ad-skipping button has to be pressed within the first 5 seconds to be effective and also the advertiser will choose whether to offer the option. It will also improve the creativity of advertisers to get users to wait beyond the first 5 seconds.

The advertiser will also learn more about who is watching their ads, with access to demographic and other information that YouTube gathers on users. YouTube will charge advertisers only when a viewer has watched the full ad or the first 30 seconds, whichever is shorter. During the beta testing phase, YouTube found view-through rates of 20% to 70% (the measure of how many viewers opt-in to watch an ad, which is a strong indicator of the ads effectiveness).

YouTube is making the TrueView available in the United States and Canada initially but plans to make it available in other countries in the future. For now, advertisers have to contact a YouTube representative to buy the new format. The site plans to eventually offer it as a self-service option.

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