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By Adam Glantz   |   Posted at 3:21 pm on August 9, 2012   |   No Comments

Ad It Up: Viewers Show High Tolerance for Online Spots

Consumers view 91 percent of ads in long-form video content

espite being bombarded by an unprecedented fusillade of advertising, consumers of digital video content continue to display a high tolerance for sponsor messaging.   According to a new report from the video monetization firm FreeWheel, the online video environment is increasingly mimicking the experience of the age-old television ad model, as the standard pre-roll spot is giving way to a far more comprehensive break structure.

Upon serving up 10.1 billion video ads in the second quarter of 2012, FreeWheel concluded that long-form content is the most desirable environment for advertisers. Not only are spot loads on the rise—in the three-month period that ended June 30, long-form video content was studded through with eight ads on average, up 167 percent from three in the year-ago period—but viewers are also remarkably tolerant of the interruption.

Despite the heavier spot loads, users viewed 91 percent of the ads slotted within full-length episodic programming, a classification that includes 22-minute sitcoms and scripted dramas. Not only does that mark an improvement from 81 percent in the second quarter of 2011, but the 9 percent avoidance rate is superior to that of broadcast. Per Nielsen C3 ratings data, viewers of the Big Four nets skipped 13.5 percent of ads served during the 2011-12 season.

Read more: AdWeek

Real-time bidding’s effect on analytics

Barring a massive fiscal collapse, somewhere between 2 and 3 billion transactions will be made on the New York Stock Exchange tomorrow. The people trading and bidding on these stocks, bonds, and other derivative products will fail or succeed, in large part, because of the information they have that drives their trading. Information, as they say, is power. Yet, when applied to the exchange known as online advertising, information is gathered in hindsight. Now that the real-time bidding marketplace is expanding in triple digits, which lack of proactive intelligence must be filled.

RTB has been gaining traction over the past year. While at first it was accused by its critics as too much automation in a business where professionals still value the human touch, there were just as many excited about the prospect of RTB as there were those wary of it. Now it is reality: It’s here to stay. During the first quarter of 2012, the supply of RTB impressions expanded 120 percent over the same quarter in 2011, according to results from a new quarterly tracking report being published by independent agency trading desk Accordant Media. The report estimates that the supply of RTB impressions soared 213 percent during 2011 versus 2010. This expansion is being driven by blue-chip advertisers and agencies, which, in turn, is attracting premium publishers to participate in the marketplace.

All of this is great news if the marketplace is approached proactively and predictively. That’s where the human touch will stay in this market. We need to accept, however, that the rapid rise of RTB has moved the intent of online advertising analytics and metrics. A year ago, the sharpest companies had the best rearview-mirror results from clicks, to unique users, and even offline brand lift. That’s still useful information, but it’s not enough. Now leading-edge companies need to define the outcomes they want and predict the best way to achieve them.

Read more: iMediaconnection

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