Pre-roll ads top ‘affordability’ rank in US digital video ad market

By Jim O'Neill on Feb 25 2015 at 8:45 AM

Pre-roll video ads are the most affordable ad units in the estimated $5.96 billion U.S. digital video ad market during 2014, a new study says,

eMarketer, using data from TubeMogul’s Q4 2014 Quarterly Update, said pre-roll’s average weekly cost per minute viewed was 3.2 cents in Q4 2014, a price that’s held steady throughout the year.

Connected TV and mobile cost per minute came in at 5 cents, with skippable ads running 12 cents and social averaging 18.1 cents, down from 26 cents at the start of the year.

The costs were calculated including fees divided by the total of ad minutes played.

Online video pre-rolls saw average viewability increase 14% from the first quarter to 32%; but it was down 6% from Q3, which TubeMogul attributed to “less selective end-of-year budget spending.”

Nearly two-thirds of agencies (64%) already use programmatic platforms to buy programmatic pre-rolls, as do 56% of marketers and 46% of publishers.

eMarketer forecast that continued performance improvements are likely to increase programmatic pre-roll activity up this year.

According to TubeMogul, meanwhile, inventory for mobile pre-roll ads is “quintupling every year,” and showed a 387% annualized growth rate last quarter. In the U.S., that inventory was up 67% quarter over quarter, 10% faster than global growth.

Since the bulk of mobile ads expand to full-screen, issues like above- or below-fold position, and player size are not concerns. Viewability in general, TubeMogul said, was up 14% in 2014.

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