How Advertisers Combat the "Skip Ad" Button

In mid-August, Netflix announced that they are going to start testing running advertisements between episodes – or as they referred to them, “recommendations… [to help] members discover stories they will enjoy faster.” And no surprise, subscribers are not impressed with the concept and has  caused significant backlash. Netflix, until now, had set themselves apart from their competitors such as Hulu, Amazon Prime and YouTube, because their platform was completely ad free. So, even if Netflix’s intentions behind implementing these “suggestions” are actually meant to improve user experience – it brings up the age old  question of why viewers are so opposed to ads? What lengths they will go to to avoid watching ads? And most importantly, how do marketers and digital advertisers keep our users engaged and interested enough so that they don’t feel the urge to push the “skip ad” button.

CNBC covered a study written by IPG stating that 65% of viewers will push the skip ad button as soon as it becomes an available option. But even more interesting is that, 76% of those people were also reported to do so out of habit, “[as] an ingrained behavior.” It is clear that viewers are so accustomed to ads, because they experience them in video, on social media, and listening to music on a daily basis, that they have become wired to skip them. For digital advertisers this is an opportunity to improve the experience enough so that audiences feel both engaged and interested in the content being offered to them, rather than annoyed.

Make it Engaging

Advertisers need to tell a good story in the language that addresses their audience. Advertising can’t just focus on pushing features and functionality, but rather engage with the viewer in order to tell them who their brand is and why they should pay attention.This doesn’t need to be complex or lengthly, but actually the shorter the better, since the average viewer only watches the first 5.5 seconds of a 15 second pre-roll ad. Advertisers have to pack a lot into those couple of seconds, needing to effectively tell their story in an engaging way that keeps the audience’s’ attention and encourages them to interact with their brand.  
To encourage viewers from skipping ads on YouTube, NBC showed cute images with messages that read, ““Only a monster would skip a video of a bunny in a bucket…Enjoy a moment of goodness, and maybe, just maybe, you will end up in the good place” to promote Season 3 of their hit-sitcom, “The Good Place.” Viewers that didn’t skip over the ad were rewarded with a sneak peak of Season 3. This successful storytelling technique not only promoted users not to skip the ad, but to actually engage with the content being presented.

Make it Relevant

eMarketer projects that by 2020, video ad spending will reach $19.81 billion. With mass amounts marketing dollars going toward this platform, advertisers need to ensure they are targeting the right audience. With the growing capabilities of programmatic video, the ability to contextually target a person with the appropriate message, timing and content is in now possible. Brands who use a combined DMP and DSP for their programmatic video buys have the ability to learn about their users in an efficient way so that they can deliver ads with content that they will not want to ‘skip’ in the right context of the video content being consumed.
Programmatic media buyers also have the option of using Dynamic Creative Optimization technology (DCO) which enables them to create and test different creative options, automatically and simultaneously, and identify which ad gets the best consumer engagement. Tactics like this, that enable advertisers to match individual consumers specific interests, exemplify why 60% of video ad spend money is going toward programmatic video, with that number only estimated to grow in the coming years.

Online video advertising is rapidly dominating the advertising atmosphere. However, today it’s not enough to create a one size fits all ad creative, if brands want to combat  ‘the skip button,’ otherwise their dollars spent on this tactic, will be wasted. Viewers are less likely to skip an ad with a unique and interesting story, even more so, if the story interests them personally. Programmatic video advertising combined with user data and great creative offers a huge opportunity for advertisers to keep audiences less inclined to dislike advertising enough to skip it all together. If you are interested in learning more or talking about how to improve your video strategy, reach out to us here.

Programmatic Media Buying 101: YouTube Advertising Best Practices

Video has a lot to offer digital marketers and consumers. In 2017, video will account for almost 70% of all internet traffic. With additional advances in connectivity and mobile technology, streaming big video files is no longer prohibitive, enabling users to share a wide array of content.

Buying YouTube Advertising

As a medium for marketing, video requires more time and effort to produce than a Instagram Post, Tweet or Facebook Status Update, but the overall payoff can match or go much beyond the investment. Once efforts to produce content are made, marketers attempt to gain the most from their creative content by leveraging social media to make sure it gains visibility and recognition so they can earn return on their investment (ROI).

Of the top seven social media platforms, YouTube ranks as the 4th highest in usage by consumers, and of those seven, it’s the only platform specializing in video.

Topping the list of online video platforms, YouTube has made it easier for marketers in many ways by offering:

  • An easy to use format for posting and sharing videos on any social media channel
  • A wide reach and plenty of traffic: 1 billion users, who spend millions of hours watching videos daily
  • Global reach in over 70 countries and 76 languages
  • The ability to go anywhere the user goes – over 50% of video play comes from mobile audiences
  • A truly social video channel with options to share, like, comment and subscribe which helps to drive interest-based traffic
  • Search features makes videos the answers to consumers’ questions

And that’s all just a part of setting up a YouTube channel.

Brand Advertising Campaigns

When it comes to using the YouTube platform as a mechanism for brand promotion advertising campaigns, there are two ways to go about paid advertising:

  1. In-display ads: appear in YouTube search results, as related videos, or on websites that belong to the Google Display Network.
    • These display as the results of a search or appear on the right hand side of a video being viewed as related content.
  2. In-stream ads: appear as pre-roll before a video plays.
    • Pre-roll ads may have a “skip ad” or a “Your video will play in 10 seconds” notification to let viewers know the ad’s duration.

Advertising Targeting on YouTube

To target audiences for these ads, advertisers use a variety of targeting options that are also found within programmatic campaigns such as keywords, location, time of day, network, language and device type. While video offers marketers the opportunity to engage and provide value through things like demos, testimonials, and “how to” content – it’s not as easy to produce as a tweet, blog or white paper.
When setting up these campaigns in a programmatic self-service platform, advertisers set their maximum bid price even with no guarantee that the video will be viewed in its entirety.

Best Practices for Video Advertising 

Marketers need to keep in mind that with video, quality matters. Not only do the audio and visual components need to be high quality, but the content should follow as well. If these factors fall short, and your video isn’t useful or engaging, it’s not valuable.

For both advertising and brand channel pages, YouTube provides reporting analytics that help to quickly assess and optimize the posted video and it’s targeting on your programmatic platform. These video metrics give marketers a lot of insight into how much of the video is being viewed or engaged with. This information can be used as a way of gauging intent signals, for example, a video that’s been completed can indicate a qualified marketing lead and is also a re-marketing opportunity.

Best Practices Summary

  • Video is on the rise, and YouTube tops the list of online video platforms.
  • YouTube also ranks among top social platforms and provides real social features such as share, like, comment and subscribe.
  • Marketers can get a big return on investment by creating quality video that engages and provides value for users.
  • Video gives marketers insight into intent signals and the opportunity to drive qualified traffic from YouTube to sign up or purchase pages.
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