Viewers accept more online video ads, new research shows

February 21st, 2012

More video ads are being used in longer online videos as viewers accept a growing number of commercials in order to watch valued content on the internet, new research reveals.

Figures from online video ad company FreeWheel show that the number of ads in long-form content (videos lasting 20 minutes-plus) more than doubled during 2011 to an average of 6.9 per piece.

There was also an increase in the amount of ads placed midway through video content. This growth was sparked by more mid-form (videos of between five and 20 minutes) and long-form content being made available online.

Meanwhile, the number of people watching video ads through to completion rose in the last quarter of the year, with completion rates over the whole year standing at 88 per cent. This suggests that viewers are more receptive to higher ad loads, according to the company’s Video Monetisation Report.

Between the first and fourth quarters of 2011, ad viewing increased by 49 per cent, while video viewing growth was slightly slower at 47 per cent. These figures should offer encouragement to video production companies looking to monetise their content. FreeWheel believes they are an indication that digital video is becoming increasingly profitable as more marketers see value in advertising via online video sites and video streaming services.

The report analysed more than 45 billion video views and nearly 28 billion video ad views during 2011, using information from providers such as ESPN, Discovery, AOL, VEVO, Turner, Fox, CBS, and A+E Networks. Most of the data was US-based, with a small proportion of the views coming from the rest of the world. FreeWheel did not include user-generated video viewing or ads in its research.