Publishers are faced with the challenge of redefining ad load for online videos. Increasing ad load means more revenue in the short term but could have a long-term impact on consumer and advertiser satisfaction. So what’s a publisher to do? Some say to increase ad load for online videos because consumers are accepting of ads for premium, long-form online content. These experts argue that the current ad load disparity between online video and a typical 30-minute TV program suggests plenty of room to increase the volume of ads online without upsetting viewers. Others recommend caution as too many ads lowers impact and risks upsetting viewers. Nate Elliott of Forrester Research says increasing in-stream ad load is great for interactive marketers but bad for consumers. Marketers gain pricing power when ad supply grows, but consumers are likely to be critical if it changes their viewing experiences. A third camp says why mess with what’s working? In an interview with Beet.tv, Hulu’s Kevin McGurn said Hulu ads were twice as effective as TV ads, yet Hulu delivers only three-and-a-half minutes of advertising during a 22-minute television program. The conclusion in this camp is if half the ads deliver twice the impact, leave ad load alone. There may not be an easy answer, but it’s worth the effort to determine an effective, long-term, revenue-maximizing ad load that doesn’t overwhelm viewers. With a little A/B testing, publishers should be able to find their sweet spot. Visit http://www.yume.com for information on monetizing your video inventory.
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