As we’ve been saying for some time now, the only way for advertisers to gain control of the online platform is to give viewers complete control.
Which means allowing them to skip commercials. No more forced views.
The reason why this gives the advertiser more control is because it gives them more data. Data is power in the online space as data allows advertisers to hold their agency accountable.
Here’s what the IAB had to say in their Executive Summary released today: With the introduction of Skippable ads, some publishers may enable new business models based on ads viewed through completion.
The key thought in that statment is ads viewed through completion. Advertisers look at ads viewed through completion as being more valuable than ads not viewed through completion.
In fact, every advertiser I've talked to has confirmed that they'd be willing to pay their creative agency more for making those ads and less for ads that viewers don’t want to watch through completion.
This is the theory behind View Duration Compensation. Pay for creative development based on view duration. It's a model that makes everyone a winner.
First, it allows the advertiser to hold their creative agency accountable.
Second, it allows the publisher to have a new revenue stream, selling this view duration data.
And third, it allows creative agencies to be paid based on how good they are, rather than on how many hours of effort they put into the project.
So, the IAB is right. Skippable ads may enable new business models based on ads viewed through completion.
In fact, it already has.