YouTube to offer skippable ads

YouTube is set to release a new ad unit designed to give users the choice of which ads they want to watch, or not watch as the case may be.

The new system, called TrueView, will give the viewer a choice of three different ads to watch on the video-sharing site, alongside the option to skip the ads altogether (in which case the advertiser is not charged).

There was always the possibility that the traditional TV ad break was used for making the tea; a quick trip to the toilet; or at best allowing viewers to talk about the ads / programmes they were watching… then came the fast-forwarding option on a DVR, which researchers constantly assure advertisers still promotes brand awareness (particularly for sponsors).  Now, YouTube is giving consumers the ultimate control.

For short-form content, users will get a TrueView in-stream ad, which they can skip.  For longer-form video, users will be able to watch a video with or without ad breaks if they watch one of the three video ads first.

These formats are expected to be rolled out in the next few weeks, according to Ad Age.  It might sound like all bad news but there are some (small) positives – firstly, viewers want more and more choice and will come to expect to be ‘in control’ as connected TV becomes the norm (although there is an argument that perhaps the consumer is being asked to make an effort to decide, when ignoring or viewing are both relatively effortless). Also, advertisers will not pay for ads that are not viewed.  For brands, the challenge will be getting viewers to want to watch their ads, which will encourage more creativity.

But, as with most Google plans, there is only one real winner – YouTube. The video giant is going down the sales house route, which will allow it to implement a micro-payment system. This will put YouTube in a unique position and will, of course, allow the Google-owned site to bypass broadcasters such as ITV, which is potentially very bad news for the industry.

Also, TrueView implies that only ads you choose to watch have value (in the same way that the primary online advertising model only gives value to ads that are clicked on).  As many researchers will tell you, the brain is more complex than that, and some of the most effective ad campaigns in history have worked at a low-attention level.

On top of that, the cost-per-engagement model may mean higher CPTs, but this will be countered by much lower delivery so YouTube wins share but the total market (and long term ad effectiveness) decline.

And if nothing else, it is surely driving another wedge between YouTube and quality content owners.