YouTube Tests Ad-Skipping Feature As A New Form Of Engagement

YouTube is testing “skippable” pre-roll ads on a select group of its content partners’ videos, as it tries to determine what sort of spots are engaging to viewers and what turns them off, Mediapost reports. The ads will appear on the clips of partners who have chosen to participate in the test. Specifically, YouTube’s parent Google (NSDQ: GOOG) hopes to discover a clearer profile of those most likely to skip ads, as well as zeroing in on what point during a spot a viewer is more apt to cut off a spot. If YouTube can get a better handle on the what makes viewers more inclined to watch or avoid its video ads, Google hopes it can create a new ad format, which it’s already dubbed “cost per engagement,” where marketers pay for the portion of the ad actually viewed.

YouTube has consistently struggled with trying to find the right model for its video ads since Google bought YouTube for $1.65 billion — or as Google CEO Eric Schmidt conceded, about $1 billion more than it was worth — nearly three years ago. At various times, YouTube has attempted to move away from pre-rolls by turning to post-rolls, which were seen as less annoying to viewers. After finding that model lacking, YouTube then explored ad overlays. In the end, the video site found that there was no silver bullet that would lead to profitability, so it has opted for for a variety of tools, with pre-rolls remaining dominant.

Having settled on pre-rolls, YouTube’s hopes for “cost per engagement” ads signals that although YouTube is still willing to experiment, it’s also more pragmatic, accepting that the fact that, at least for now, the pre-roll is its bread and butter.

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