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YouTube Readies New Ad Units That Users Can Skip

New Units Will Give Consumer's Choice — Even if That Choice Is to Opt Out  —  SAN FRANCISCO (AdAge.com) — Whether it's walking out of the room, fast-forwarding on a DVR or paying for premium cable, consumers are used to having choice with ads on TV.

AdAge Irina Slutsky

Context & Ripple Effects

YouTube's planned opt-out format follows Google's 2009 test of skippable YouTube ads, moving viewer choice from an experiment toward a defined advertising option. The pitch aligns online video with the control consumers already exercise through DVRs and paid television services.

First-order effects

  • Viewers gain an explicit way to decline an ad rather than merely leaving the screen or fast-forwarding elsewhere.
  • Advertisers buying YouTube inventory must compete for attention in a format where viewers can end exposure.

Second-order effects

  • YouTube's ad sales team has a stronger reason to sell advertisers on engagement and creative relevance, not simply guaranteed interruption.
  • Video advertisers face added pressure to make the opening moments of an ad compelling enough to discourage skipping.

Third-order effects

  • If opt-out units gain adoption, online-video advertising shifts toward a market in which audience attention is actively chosen rather than assumed from ad delivery.

The trend: Digital video advertising is adapting to consumer-controlled viewing by making ad exposure more contingent on viewer choice.