Because this is an opt-in form of ad delivery, people are more likely to stick around and actually watch an ad, especially when compared to typical pre-rolls. According to Selectable Media CEO Matt Minoff, more than half of users opt out of watching a video when a pre-roll starts, but his company has a completion rate for its brand video ads above 90 percent. This is ideal for the business model, since Selectable Media sells its ads on a cost per completed view metric —it doesn’t get paid unless viewers actually finish watching an ad. Selectable Media recently snagged $2 million in Series A funding from Avalon Ventures.
If you are an avid Hulu user, you might have noticed recently that you are now able to select which ads you would like to see. Typically, a consumer gets to choose one of three ads about the same brand — I keep getting it for Chase Banking for their zero fees campaign. However, this ad selector does not work on Hulu’s app that is meant to offer easier access to the sites contents via mobile and tablet devices.
“While time spent on mobile and tablet devices continues to grow rapidly, brands have had a hard time telling their story to mobile consumers,” says Marc Rothschild, COO of Selectable Media. “Standard ad units that have worked on the web have not translated to mobile. With our user-initiated, Select-to-Unlock platform, our mobile campaigns are seeing completion rates of more than 96 percent and click-through rates of higher than 10 percent. By translating our unique solution to mobile, Selectable Media continues to drive better results for consumers, publishers and advertisers across all devices.”
Ad Selector Model on the Rise
The Ad Selector is a variation on pre-roll that lets users choose between several brand messages before watching online video content. In the research, it was proven to be more effective than standard in-stream advertising at driving click-through rates and ad recall. Industry research conducted by VivaKi, TapJoy and Forrester reveals that consumers have greater favorability towards ad selector models, as compared to standard pre-roll. Thus, it’s no surprise that Hulu decided to integrate this model into its user ad experience.
Ad selector models drive superior performance for brands, including 290 percent higher ad recall and 109 percent click-through rates when compared to standard pre-roll, according to a study by VivaKi. Selectable Media’s Select-to-Unlock platform has demonstrated results for clients like NBC, Wendy’s, Kraft, HBO and Samsung by using consumer choice to spur greater engagement among viewers. These brands are experiencing video completion rates of more than 96% and CTR of higher than 10% on these mobile campaigns.
Back in May 2012, Heineken, O2, and Samsung became the first UK brands to launch trials of a three-slate ad selector format called ASq offered by VivaKi. The campaigns were run across publisher platforms Channel 4, Microsoft, and YouTube during a two-month period, tracking 10m impressions. VivaKi then worked with ComScore and Vindico to examine consumer response to the ads, including metrics such as brand recall, view-through rates and intent-to-purchase.
The ASq format saw higher interaction rates than traditional pre-rolls, with a 20.5% surge in purchase intent, while overall brand awareness rose 12% compared to regular pre-roll ads.
“The US had carried out millions of dollars of research establishing ASq as the most effective ad format in the US, backed up by tens of publishers now running it live in market. In the UK, we wanted to validate that work and pit the winning US format against the pre-roll benchmark here,” said Marco Bertozzi of VivaKi. “Results have shown considerable improvement across all criteria for ASq and confirm the premise that providing consumers with choice is a winning formula. We are excited about rolling this format out to market, which will be available to all buyers in the industry through a number of major publishers.”