the future of pre-roll?

someone asked me my thoughts on the future of pre-roll. it was a very interesting question and wanted to share my response. wrong or write see below.

marx.

So pre-roll as we know it today will morph into ‘captive video advertising’. Meaning there will be many approaches on how you force a user to consume a video advertising message with the user having no control over the experience. Over the next 12-18 months captive video advertising will definitely play roll in the continued growth of the online ad space based on the increasing amount of professional content that is coming online. The two major factors in this are:

1. advertiser understand the approach, metrics and pricing model which will make it easier for them to move dollars
2. publishers [i.e. Hulu, cbs, abc, etc] can charge premium cpm’s for the inventory at this point based on the wall garden they have built around their professional content. So the user experience is not that important at this point.

What we will see over time will be a shift in the space on how advertisers value inventory.  Engagement [user shows interest] because it will be more efficient from a buying standpoint and time spent [how long did the user spend with my brand]. Captive video advertising online will never go away because its just to easy from a advertiser and publisher standpoint but it will become less and less of the media mix as the space continues to evolve.

My other thoughts on the space are as follows:
– intro cards will play a bigger roll in captive video advertising based on the fact :5 second ads are easier for user to deal with but no advertiser cuts :5 spots.
– the :15 broadcast spot will be the default spot used online in the next 12-18 months
– content ads will become more popular. Meaning having the content producers create the video ads for the advertiser to ensure the ads are related to the content the user is consuming.

marx.

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