Google removes ‘ad tax’ with new mobile video ad platform
Internet behemoth Google has launched skippable pre-roll video ads on mobile devices.
The move puts the search giant ahead of rival for online ad spend Facebook, which has struggled with monetising mobile usage.
YouTube group product manager Phil Farhi told Mumbrella: “With TrueView, content makers get better revenue, and there is less tension between the content maker and the user. Previously ads were like a tax you had to pay for watching.”
“Now the user is in control of the ads they see and there is greater accountability to advertisers who only pay for engaged views. When the advertiser engages with the user, the user becomes a very powerful advocate for the advertiser through sharing.”
The new ad format is part of Google’s TrueView product suite, which until a few days ago was only available on desktop. TrueView uses a cost-per-view model. Users can skip ads after five seconds and advertisers are only charged for ads watched for at least 30 seconds.
Google claims users engage with ads on mobile in a similar way to ads on desktop. 65% of in stream pre-roll ads sold on YouTube are now using the opt-out function. Despite this, 15-45% of ads are watched in their entirety.
Farhi said the opportunity for creatives was “to generate insights, access data which proves which ads resonate well. YouTube is the world’s largest focus group.”
