Online Video Ad Loads More Than Doubled In 2011: Study
Views of Professionally Produced Content Dipped in Q4, According to FreeWheel
By Todd Spangler -- Multichannel News, 2/16/2012 5:46:28 AM
The number of ads in long-form Internet video content more than doubled over the course of 2011 -- to an average of 6.9 commercials per view for videos of 20-plus minutes -- according to a report by online video ad company FreeWheel.
In addition, the data shows that viewers are receptive to the higher ad loads, which are approaching those on linear TV: Completion rates for video ads held steady at 94% for Q4 and 88% for all of 2011, according to FreeWheel's 2011 "Video Monetization Report."
The FreeWheel report analyzed more than 45 billion video views and nearly 28 billion video ad views in 2011, aggregated from the company's customers including ESPN, Discovery Communications, Turner Broadcasting System, Fox, CBS, A+E Networks, AOL and Vevo.
However, professional video views slipped slightly in November and December of 2011, as professional content producers slowed the introduction of new episodes into both linear and digital video markets, FreeWheel found. (The company did not disclose how big the decline was.)
"Digital video viewing has grown at a rapid pace over the past two years, but Q4 viewing data tells a cautionary tale for content producers: Unless they continue to introduce broad libraries of content to market and widely distribute that content to broader audiences, their ability to capture advertising revenue will slow accordingly," FreeWheel said in its report. "The only solution is to increase inventory to keep pace with viewer demand."
Meanwhile, ad loads in mid-form content (5-20 minutes) increased in 2011 -- but to an average of just 1.2 ads per video in Q4, up from 0.75 in Q1. Short-form content (less than 5 minutes) increased from 0.46 ads per view to 0.54 over the same period.
In terms of ad position (pre-, mid- and post-roll), mid-rolls -- which are most often placed in long-form content -- grew the most during the year (146%), while pre-rolls, the position most favored for short-form, grew 35%. FreeWheel said mid-roll video ads grew in 2011 for three reasons: more mid- and long-form content was made available online, more mid-roll ad pods were created within that content and video ads per pod increased.
The iPad "continues to be an influential device for video viewing," with a notable spike in primetime on tablets in the evening from 9 p.m. to 11 p.m., the FreeWheel report also found.
Most of the usage FreeWheel measures is U.S.-based, with a small percentage of the viewing internationally. The firm does not track user-generated video viewing or ads.
The report can be downloaded here: www.freewheel.tv/theroundup/reports/freewheel_video_monetization_report_full_2011.
FreeWheel's flagship Monetization Rights Management system lets customers manage ad sales rights and serve ads on wired and wireless Internet devices. The New York-based company has raised $28.8 million from investors including Turner, Steamboat Ventures, Battery Ventures and Foundation Capital.
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