Thursday, April 17, 2014

TrueView For Creative Production

The TrueView skip button on YouTube, lets viewers skip commercials after five seconds.

Advertisers don’t pay for the impression if the viewer skips the commercial.

YouTube says this offers advertisers accountability over their media buy.  And, that advertisers like this.

My question is, if it works for an advertiser’s media budget, why can’t it work for an advertiser’s production budget?

In other words, advertisers pay for the production of a commercial based on how long people watch the commercial for.

If viewers, on average, watch the entire :30, the advertiser pays more than if viewers watch, on average, only :12.  Twenty seconds viewed would cost the advertiser more than ten seconds viewed.

Paying in this way offers advertisers accountability over their production dollars.

For lack of a better term, call it view duration compensation – the first accountable way for advertisers to manage their production costs by paying only for what people watch.

It would be a form of TrueView for creative.

It’s not a matter of if this will happen.

It’s only a matter of when.



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