I was having a conversation with an online video executive about the video ad units.

Personally, I think content-as-ads (product placement, integration, etc.) will be a force.  But that’s a separate point.  Discussing display-around-video ads vs. pre-roll ads, I argued:

Generally speaking, let’s be realistic: pre-rolls are not popular, so the instant one loads, people tend to close the player and move on: the video ad is not seen nor is the video content.

My future livelihood depends on video ads yet I don’t watch any content that comes embedded with a video pre-roll… so I can imagine the Average Joe feels even stronger.

So… if we are to run a companion ad along with a video player (that comes with a pre-roll), even if someone does not click to watch the video (and pre-roll), if they are exposed to the 300×250 companion ad, then there should be a CPM corresponding to that.

Basically, I personally think long term the value of [companion ad x cpm x impressions] > [pre-roll ad x cpm x impressions]

Yes, the CPM for companion ads is much lower, but the impressions much higher…

I think sales people can and should charge a fee for the companion ad.  In fact, we will start offering a unit like that to advertisers and I’d like the IAB show some leadership on this point.

What do you think?

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