25 July 2014
TrueView is YouTube’s online video ad format which is based on an interactive model. The service allows the viewer to skip the advertisement or select to watch an ad from a choice of different ads. The company is only charged if the viewer watches the video ad.
The TrueView ad format offers three main types of ad
TrueView In-Stream gives viewers the option to
skip the ad after 5 seconds.
TrueView In-Display ads appear as a thumbnail
and text on YouTube watch pages in the right-hand pane of
suggested and recommended videos.
TrueView In-Search ads appear in a special
promoted section of the video search results pages on YouTube
and in Google Video search results.
Tech analyst and partner at Kleiner Perkins Caufield Byers
(KPCB), Mary Meeker called the service a "game-changer" in her
annual trends report released in May this year. She argues that
skippable ads will actually accelerate the monetisation of
video. "Skip option keeps users happy, encourages marketers to
make their ads entertaining, and lets advertisers only pay when
their ad is actually watched," she says.
YouTube owner Google maintains that because viewers can skip or
select the ads they want to watch, the advertiser saves money
and reaches a more targeted audience. According to Google
15%-45% of YouTube viewers let the ads play.
Why is it important?
Online video advertising has been earmarked for big growth as
OTT video content is increasingly driving network
According to Media Research Group (MRG), video on demand
subscription will grow to more than 120 million subscribers by
2017. As the popularity of online video content increases,
marketing companies are turning their attention to online video
ad opportunities. "The popularity of digital video viewing is
helping to drive the expansion of the online video ad market,"
market research company eMarketer wrote in a report.
The Global Entertainment & Media Outlook 2014-2018 report
also predicts that online video will be the fastest growing of
all forms of advertising.
What does this mean for operators?
Online video consumes massive amounts of
bandwidth, requiring telecoms operators to invest in
network upgrades in an effort to keep up with the additional
However, operators often miss out on revenues created by OTT
online video content and are looking to create new business
models which will allow them to generate revenue from content
As online video advertising grows it is critical that operators
should leverage their assets and capabilities and collaborate
with OTTs to capitalise on the trend, according to a report by
consulting firm Booz and Company released in November last
Some operators are beginning to generate revenue streams from
online video ads by creating new services such as data
analytics, which they can sell to businesses on a wholesale
What opportunities are there for
Big Data is central to making online video advertising
successful, says Video-Nuze, an online publication for the
online/mobile video industries.
Operators have a strong retail network, with the ability to
reach millions of subscribers, according to Booz and
Company’s report "Enabling the OTT Revolution: How
Telecom Operators Can Stake Their Claim". In addition they have
the ability to collect location, behavioural, and usage
information about their customers.
The consultancy expects there to be an increase in interest
among marketers for Big Data. Data provided by operators will
allow companies to better understand customers and improve
marketing efforts through location-based video ads and
In early June this year, AT&T announced plans to launch a
new service which allows businesses to access the
operator’s network data to confirm a
customer’s location. The location information
services capability is designed to notify businesses when
participating customers travel internationally.
Initially designed to improve security for credit card
companies, such a service is also very useful for marketing,
and could be used by companies for more targeted online video
The new service is enabled through an application program
interface (API) and is part of AT&T’s Mobile
Identity API Toolkit, which launched in December 2013.
"Companies want to get ahead of customer expectations, offer
new ways to solve challenges and differentiate from their
competitors," said Laura Merling, VP of business digital
experience at AT&T.
Verizon Wireless too offers a service to marketing companies
that provides real-time location of specific audiences,
including where the users are and what they do, online and
The number of operators looking to collaborate with
OTT’s to provide service offerings which bolster
profits for both companies is increasing and the growing online
video advertising market provides many opportunities for
over the top,