Hulu’s recent decision to reject 30-second pre-roll ads falls in line with the stance taken by YouTube back in August.  Both video platforms have opted for overlays, initiated by Videoegg and ScanScout, which they deem more conducive to satisfying user experiences.  However, for its long-form content (half and full hour programs), Hulu offers sponsor introductions starting at two minutes of pre-show ads for half hour programs.  

While Hulu and YouTube have chosen not to run pre-roll ads, a study released by the Online Publishing Association (OPA) in June  calls into questions whether pre-rolls should be rejected outright.  The study claims that consumers 30-second ads are more effective at driving brand awareness, likeability, and consideration than shorter ads.  

While it may not come as a shock that longer ads promote these brand attributes, the study does not measure the impact that these ads have on the user experience.  Google/YouTube fought back two months later, citing their research that suggested that abandonment rates were nearly 75% with 15-second ads while only 10% with the overlays.  They continued to note that click rates on the overlay ads were around 1-2% and that 75% of those watched the entire ad.   

Both studies yield crucial findings regarding the world of online advertising, but the true test is the return advertisers will see after investing in these various platforms.  While the results of the OPA study do not address user experience, they do touch upon consumer actions post-ad viewing.  They find that consumers who visit media sites (magazine, newspaper, and online-only news) are more likely to act upon
an ad than visitors to portals or sites offering user-generated content. 

Despite Google’s claim that abandonment rates with overlays are only a fraction of those of pre-roll ads, further analysis is necessary to determine if overlays generate the same consumer action as pre-roll ads given research that demonstrates that visitors to user-generated content or portals are less likely to act upon an ad.  Google and OPA need to fuse their findings to address the impact of pre-rolls and overlays on advertisers maximizing returns on their investments.       

Lindsay M. White