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Ads on content streaming sites outperform pre-roll average finds TubeMogul study

Streaming sites

Source: Programmatic Living Room White Paper

Video ads placed on content streaming websites are far more effective than pre-roll ads on sites such as YouTube, according to a study by TubeMogul.

In a white paper called The programmatic living room, the demand-side platform found that video ads on licensed content sites such as Hulu delivered a higher return in terms of viewability, how much of the ad is seen, and completion rate, how many of the ads are watched until the end.

The study did not cover unlicensed streaming sites, which were the subject of a story on Mumbrella last month that found brands including Singtel, POSB Bank, P&G and Toyota placed next to illegal content.

Data for Hong Kong showed that the viewability rate of ads on licensed streaming sites was 54 per cent compared to 29 per cent for pre-roll advertising. In Australia, the viewability rate on streaming sites was 51 per cent compared to just 19 per cent for pre-roll video ads.

In both territories, completion rates were high for streaming site ads, 84 per cent for a 30-second video ad in Australia, 75 per cent for the same format in Hong Kong.

But viewability rates are much lower for content aggregators than programme or service providers.

Viewability rates

Source: TubeMogul

Streaming sites enable brands to reach a younger demographic, the report pointed out, as consumers of streaming sites, who tend to watch less linear TV, tend to skew younger.

Streaming sites offer the targeting options of digital, combined with the “lean-back” viewing experience associated with television, whether it occurs in an actual living room or not, the study observed.

In a statement about the placement of ads on illicit sites, TubeMogul told Mumbrella: “There is a general concern in the programmatic advertising market that across Southeast Asia and around the world, there is a distinct lack of transparency. Some ad networks and other shady characters have perpetuated this misconception by embracing black-box solutions that can mislead marketers. We believe advertisers deserve site-level transparency across both economic- as well as performance-based metrics, so they can see exactly where their ads have run, how much they have cost, and how they have performed.”

TubeMogul’s desktop-based pre-roll inventory is manually screened by a specialist team before it is loaded on to its platform, the company explained. TubeMogul has publicly named sites known to be infected with suspicious traffic to “help move the industry forward and provide benefit to all marketers, not just our clients,” the firm said.

To read the report in full, click here.

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