Our Skip Button Love Affair | SXSW 2017

SXSW 2017 Our Skip Button Love Affair Christopher Ferrel Digital Strategy Director The Richards Group Hyatt Regency Austin Zilker Ballroom 1 March 14, 2017 11:00 AM

“I .”Skip Ads ►|

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I’m an ad

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Does the ability to skip ads matter?

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We are entering a new era of digital adsMobile Social Video User choice

#skipbuttonlove

Welcome to the skippable era

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The questions you should be askingShould your ad be skippable or non-skippable? Can you measure the value of a skipped ad? Does your creative work in the skippable era?

#skipbuttonlove

Should your ads be skippable or non-skippable?

#skipbuttonlove

Non-skippable ad revenue levels offDigital ad revenue, non-search ($ billions) Source: IAB / eMarketer (2008-2016), BI Intelligence (2017-2021)

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Skippable ads surpassed non-skippableDigital ad revenue, non-search ($ billions) Source: IAB / eMarketer (2008-2016), BI Intelligence (2017-2021)

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Skippable ads will dominate by 2021Digital ad revenue, non-search ($ billions) Source: IAB / eMarketer (2008-2016), BI Intelligence (2017-2021)

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Our skip button love affair

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Emotion analysis9% joy, 82% anger Source: Crimson Hexagon, 83k most recent posts

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Emotion analysis9% joy Source: Crimson Hexagon, 83k most recent posts

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Emotion analysis82% anger Source: Crimson Hexagon, 83k most recent posts

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2/23/2017 Print - Study: Pre-Roll Ads Dramatically Increasing Ad-Block Installs - Advertising Age

http://adage.com/print/302349 1/2

Study: Pre-Roll AdsDramatically IncreasingAd-Block InstallsStudy Surveys 9,000 People Who Either Have or Are

Aware of Ad-Blocking Tech

By George Slefo

Published: January 26, 2016

Video ad tech company Teads released a study Tuesday that

aims to provide insight as to what motivates people to use ad

blockers.

Research Now conducted the study and surveyed 9,000

people. Active users of ad blockers, including mobile, and

those who are aware of ad blockers but have not yet installed

them, were surveyed for the study.

The research said pre-roll ads were among the most intrusive,

with 41% of respondents saying they installed the ad-blocking

software due to the ad format. Additionally, Hispanics are 78%

more likely to use a mobile ad blocker while men are 22% more

likely overall to use the software on mobile devices, the study

said.

Teads makes video technology that autoplays when you're

reading a story, for example. Its clients include Mashable and

Forbes, among others. It claims its tech is not intrusive because its ads can be closed by a user as soon as they appear.

At the same time, it sees pre-roll ads as intrusive because consumers cannot skip them and have to endure the length

of the ad before they can consume the content they want.

Related Stories

IAB to Advertisers and Content Providers: 'WeMessed Up'

IAB CEO Delivers Fire-and-Brimstone SpeechAgainst For-Profit Ad Blockers

Google's Ad Boss on Ad Blocking, AMP AdViewability and Enhanced Campaigns

As IAB Bars One Ad Blocker From Its Summit, ItWelcomes Another One on Stage

For IGN, a Tech-Savvy Audience Means a BigHit From Ad Blockers

#skipbuttonlove

2/23/2017 Print - Study: Pre-Roll Ads Dramatically Increasing Ad-Block Installs - Advertising Age

http://adage.com/print/302349 1/2

Study: Pre-Roll AdsDramatically IncreasingAd-Block InstallsStudy Surveys 9,000 People Who Either Have or Are

Aware of Ad-Blocking Tech

By George Slefo

Published: January 26, 2016

Video ad tech company Teads released a study Tuesday that

aims to provide insight as to what motivates people to use ad

blockers.

Research Now conducted the study and surveyed 9,000

people. Active users of ad blockers, including mobile, and

those who are aware of ad blockers but have not yet installed

them, were surveyed for the study.

The research said pre-roll ads were among the most intrusive,

with 41% of respondents saying they installed the ad-blocking

software due to the ad format. Additionally, Hispanics are 78%

more likely to use a mobile ad blocker while men are 22% more

likely overall to use the software on mobile devices, the study

said.

Teads makes video technology that autoplays when you're

reading a story, for example. Its clients include Mashable and

Forbes, among others. It claims its tech is not intrusive because its ads can be closed by a user as soon as they appear.

At the same time, it sees pre-roll ads as intrusive because consumers cannot skip them and have to endure the length

of the ad before they can consume the content they want.

Related Stories

IAB to Advertisers and Content Providers: 'WeMessed Up'

IAB CEO Delivers Fire-and-Brimstone SpeechAgainst For-Profit Ad Blockers

Google's Ad Boss on Ad Blocking, AMP AdViewability and Enhanced Campaigns

As IAB Bars One Ad Blocker From Its Summit, ItWelcomes Another One on Stage

For IGN, a Tech-Savvy Audience Means a BigHit From Ad Blockers

#skipbuttonlove

#skipbuttonlove

Can you measure the value of a skipped ad?

Non-skippable Skippable

Are all seconds created equal?

Forced time-spent Optimize to completions

Voluntary time-spent Optimize to ???

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Ad value vs audience retention Source: Facebook, YouTube

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Measurement in the skippable era

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Audience retention

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THE VALUE OF THE AD VARIES BASED ON HOW MUCH IS COMPLETED

(Mobile/PC, 15/30 sec skippable) Overall N = 1444 23 /

Value of Impression based on Unaided Brand Recall

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AN AD THAT WAS ABOUT 40% COMPLETED IS WORTH 23% OF A COMPLETED AD

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Paying incrementally could be cost

effective

23 /

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Ad value vs audience retention Source: Facebook, YouTube

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The currency of the skippable era is time-spent

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Does your creative work in the skippable era?

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CHAPTER 7

Traffic and Trade1

Changes in the Amount and Methods of Travel

During the past fifteen years, people have been "goingplaces and doing things," farther and faster than everbefore in our history. This "modern tempo" was the resultof fundamental changes in American transportation broughtabout by the creation of numerous small-payment, installment-buying plans. By means of this process, it becamepossible for any person to become the operator of a self-propelled vehicle —the automobile.These changes may be best illustrated by comparative

statistics. In 1920, the passenger mileage of steam railwaysrose to a peak of nearly fifty billion miles and declined toeighteen billion five hundred million miles in 1935. Passenger mileage of electric railways fell from fifty billionmiles in 1925 to below thirty billion miles in 1933. Common-carrier bus mileage rose from about five billion milesat the close of the war to a total of more than eleven billionmiles in 1935; and, most startling of all, the passengermileage of the private automobile rose from approximatelythirty billion miles at the close of the war to a total ofmore than four hundred billion miles in 1930. The accom

1 Much of the material for this chapter was supplied by John Paver,research engineer, who has become one of the leading authorities on highwaytraffic.

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CHAPTER 7

Traffic and Trade1

Changes in the Amount and Methods of Travel

During the past fifteen years, people have been "goingplaces and doing things," farther and faster than everbefore in our history. This "modern tempo" was the resultof fundamental changes in American transportation broughtabout by the creation of numerous small-payment, installment-buying plans. By means of this process, it becamepossible for any person to become the operator of a self-propelled vehicle —the automobile.These changes may be best illustrated by comparative

statistics. In 1920, the passenger mileage of steam railwaysrose to a peak of nearly fifty billion miles and declined toeighteen billion five hundred million miles in 1935. Passenger mileage of electric railways fell from fifty billionmiles in 1925 to below thirty billion miles in 1933. Common-carrier bus mileage rose from about five billion milesat the close of the war to a total of more than eleven billionmiles in 1935; and, most startling of all, the passengermileage of the private automobile rose from approximatelythirty billion miles at the close of the war to a total ofmore than four hundred billion miles in 1930. The accom

1 Much of the material for this chapter was supplied by John Paver,research engineer, who has become one of the leading authorities on highwaytraffic.

147

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Lessons from 19381938 “Modern Tempo” Disruptive tech = cars for all

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2017 “Busy” badge of honor Disruptive tech = smartphones

Lessons from 19381938 “Modern Tempo” Disruptive tech = cars for all Physical destinations

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2017 “Busy” badge of honor Disruptive tech = smartphones Digital destinations

Lessons from 19381938 “Modern Tempo” Disruptive tech = cars for all Physical destinations Stand out in 7 words

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2017 “Busy” badge of honor Disruptive tech = smartphones Digital destinations Stand out in 5 seconds

68 Outdoor Advertising

to have this message delivered to a certain number ofpeople. They may not heed this message. They may noteven notice it. But it is circulation nonetheless. When asolicitor for a newspaper, magazine or broadcasting stationsays that he is selling advertising, he means that he ismaking contracts to deliver a designated number of salesmessages for the advertiser. Some advertising writers haveconfused message and medium. They have denned circulation in terms of "impressions." It is not the carrier of themessage that makes the impression, but it is the messageitself. One may not know what the boy looked like whobrought the telegram, however well he remembers themessage. It is not the postman who makes an impression,but the message he brings.

The Medium Cannot Deliver ReadersAfter delivering the message in its specified form and size,

the medium is in no way responsible for securing reading orother attention to the message. That is the responsibilityof the one who writes the message —the advertiser. If a manis too indifferent, too excited, or too much engrossed otherwise to read a telegram which he receives, it is not the faultof the telegraph company. They performed their dutywhen they delivered the message to him. So with the paidspace in a newspaper or magazine, the message may notinterest the one who buys the newspaper or magazine,but the function of each of these media has been fulfilledwhen it is delivered to the buyer. With the broadcastingcompany, the message cannot be delivered unless there is areceiving set tuned in in the home to which the messageis sent. Therefore, its circulation would be the number ofmessages sent to the homes, provided the receiving setswere tuned in when the message was sent. Of course circulation is limited to the zone reached by the broadcastingstation. If the owners of these sets are not interested at thetime, they may not get the message, but, nevertheless, theyconstitute part of the circulation of the broadcasting com

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Lessons from 19381938 “Modern Tempo” Disruptive tech = cars for all Physical destinations Stand out in 7 words Power of pictures

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2017 “Busy” badge of honor Disruptive tech = smartphones Digital destinations Stand out in 5 seconds Power of video

Lessons from 19381938 “Modern Tempo” Disruptive tech = cars for all Physical destinations Stand out in 7 words Power of pictures Few opportunities to linger

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2017 “Busy” badge of honor Disruptive tech = smartphones Digital destinations Stand out in 5 seconds Power of video Always an opportunity to linger

Creative in the skippable eraMake me care in < :05

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Creative in the skippable eraMake me care in < :05 Give me a reason to stay

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Hero benefit

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Anticipation

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1.8M views 1 min 19 sec avg

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Challenge

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28M views 3 min 15 sec avg

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Playground

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224M views 24 sec avg

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Stand for something

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1.1M views 1 min 49 sec avg

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What’s the role for non-skippable in the skippable era?

Forced time-spent Voluntary time-spent

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If ad is non-skippable, just get to the point

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Impact of the skippable era

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2017

Consistency in search ads2000

AdAd

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Inconsistency in non-search adsNon-skippable Skippable

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Auto expand

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Adhesive

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Interstitials

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Non-skippable video

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Skippable video

Outstream video

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Native

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Social

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Social

Who’s winning?Non-skippable Skippable

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Adhesive Interstitials

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NativeNon-skippable video Social

Standard banner

Advertiser preferred User preferred

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Skippable ads win users and revenueDigital ad revenue, non-search ($ billions) Source: IAB / eMarketer (2008-2016), BI Intelligence (2017-2021)

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Five forces of the skippable era +98% from titans of skippable, Google and Facebook +9% from companies who only sell skippable ads -7% from non-skippable ad networks

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Without skippable ads, digital ad revenue is in decline

Five forces of the skippable era +98% from titans of skippable, Google and Facebook +9% from companies who only sell skippable ads -7% from non-skippable ad networks Rise of ad blockers

#skipbuttonlove

Ad blockers primarily impact non-skippableDigital ad revenue, non-search ($ billions) Source: IAB / eMarketer (2008-2016), BI Intelligence (2017-2021)

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Non-skippable with ad blocker impact

Skippable

Five forces of the skippable era +98% from titans of skippable, Google and Facebook +9% from companies who only sell skippable ads -7% from non-skippable ad networks Rise of ad blockers Overhaul of IAB’s ad portfolio

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2/20/2017 How LEAN Can You Get? A Scale and a Score Will Tell You

https://www.iab.com/news/lean-principles-criteria-scoring/ 4/6

Encryption

A year ago, I joined the chorus calling for broad adoption of HTTPS. With projects like Let’s Encrypt

making certificates readily available to all comers, the need for the entire supply chain to support

HTTPS requests has never been stronger.

As such, in order to be compliant with the LEAN Principles, all resources delivered to an HTTPS

parent frame must be similarly delivered over HTTPS.

The days of simple errors for mixed content are ending – Firefox, Chrome, and IE all block active

mixed content by default. Ensure end-to-end consumer privacy and protection, avoid discrepancies

and unnecessary user-facing errors with full support for HTTPS.

Choice

The Digital Advertising Alliance’s AdChoices initiative is one of the most successful self-regulatory

programs in the history of advertising. Every month, trillions of ad impressions are delivered with the

now-ubiquitous AdChoices Icon, which signals to consumers that, with a click, they can go to a page

and learn who is using their data and how – and opt out, or opt in, to each individual user of their

data.

AdChoices is an amazing opportunity for a consumer to interact with an ad in a way that doesn’t

signal specific interest in the ad itself. In addition to the required opt-out, some implementers are

using the icon to solicit additional feedback about the ad experience directly.

Providing mechanisms for feedback and choice is an important part of having a conversation with

consumers. This is a starting point into the conversation about the importance of additional choice

mechanisms, like choice about the cadence of ads across a visitor session, and the options

presented in the Publisher Ad Blocking Primer.

Overall, we recommend that, in order to be compliant with the LEAN Principles, all ads that are

selected for delivery through the use of an online behavioral advertising (OBA) or Interest-Based

Advertising system must bear the AdChoices Icon – which means that all advertisers and all

publishers must be members of the Digital Advertising Alliance.

Skippable

Preliminary research implies strong consumer demand for skip – the research from IAB UK indicates

that unskippable video ads are a primary driver for installing ad blockers, and that having an option

to skip would cause some ad blocking users to reconsider.

#skipbuttonlove


Auto expand

Adhesive Interstitials

Skippable video

Outstream video

NativeNon-skippable video Social

Standard banner

Impact of IAB’s new ad portfolio

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Xw/ close button

<:15 only

Non-invasive onlyw/ close button

Ask the right questions. Win the skippable era.Should your ad be skippable or non-skippable? Can you measure the value of a skipped ad? Does your creative work in the skippable era?

#skipbuttonlove

Go forth and .Skip Ads ►|

#skipbuttonlove

Marketing

Our Skip Button Love Affair | SXSW 2017