Home  › Media › Video

Hulu to Launch Video Ad Choice September 15

  |  August 12, 2010   |  Comments

Hulu, Yahoo, and AOL are prepping launch of the video ad format developed with VivaKi, to be ready September 15.

Major online video publishers including Hulu, Yahoo, and AOL will begin offering users the opportunity to choose which ads they watch when viewing online video, starting September 15th. Instead of pre-defined pre- and mid-roll ads, users will be offered two or three choices, with the intention of providing a better experience for users and better return on investment for advertisers.

The ad-selection system, called ASq, is based on the findings of a research project conducted by Publicis Groupe's VivaKi unit, dubbed "The Pool." That research - funded by a total of seven online publishers - aimed to help maximize the potential of video advertising for both advertisers and publishers. VivaKi developed the technology in partnership and with funding from the publisher partners.

"The act of selecting an ad greatly improves its results," said Tracey Scheppach, Pool co-founder and SVP, innovations director at Starcom MediaVest Group's SMGx unit. Scheppach said click-through-rates using the system were 240 percent higher than those of standard pre-roll ads, according to VivaKi's research. In addition, she said "top of mind awareness" rose by 438 percent, and purchase intent rose from "essentially zero," to around 44 percent. "In online video the ad load is lower than on television, so we have to find a way to make the units worth more," Scheppach said.

Following the implementation, users viewing video content on sites such as Hulu and Yahoo will be presented with a choice of ads from either two or three different advertisers, and prompted to select which one they would prefer to watch. If the user doesn't make a selection within a designated period, the unit will default to one of the ads automatically. Scheppach said three options has proved optimal so far, with too much choice proving almost as bad as providing users no choice at all.

"In the early days of TV, advertisers were using their existing radio spots until the industry eventually coalesced around the 30-second spot. We're at a similar place for online video," Scheppach said, suggesting the new units could become the standard for online video advertising.

"I wouldn't go as far as to say it will be the only unit, but advertisers need something to pour the majority of their money into," she continued, adding "This is intended for the entire industry."

The technology will be ready to deploy from the 15th of September, with Hulu currently preparing to launch on that day. A Yahoo spokesperson confirmed that it too intends to launch the new format, but that it wouldn't be doing so next month. Other publishers currently committed to the format also include AOL, MSNBC, Discovery, CBS, and video ad network BBE, all of which contributed financially to VivaKi's research, and subsequently will not be charged to make use of the technology.

ClickZ Live Chicago Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, August 29 to take advantage of Super Saver Rates!

ABOUT THE AUTHOR

Jack Marshall

Jack Marshall was a staff writer and stats editor for ClickZ News from 2007 until August 2011. 

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Media newsletters delivered right to your inbox. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

BigDoor: The Marketers Guide to Customer Loyalty

The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.

Marin Software: The Multiplier Effect of Integrating Search & Social Advertising

The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.

Resources

Jobs

    • Sales Planner
      Sales Planner (Verve ) - New YorkAbout Verve   Verve is the leader in location powered mobile advertising. We manage one of the largest mobile...
    • Systems Analyst/Support
      Systems Analyst/Support (Agora Inc. ) - BaltimoreIRIS (Increased Revenue Intuitive Software ) is proprietary software that helps marketers...
    • Client Services Support Specialist
      Client Services Support Specialist (Agora Inc. ) - Delray Beach OVERVIEW:  This position requires a highly motivated and resourceful individual...