75% of ‘Video -on-Demand’ (VOD) ads are skipped when the consumer is given the option, according to new research from Core, Ireland’s largest marketing communications company.
Four out of five people (80%) will skip the ad in less than 20 seconds, while it appears Gen Z, those born since 1995, have the least patience for advertising they find uninteresting, with 73% skipping ads within 10 seconds. Core’s research shows that the completion rate for ads longer than 30 seconds is 14%, while the completion rates for ads longer than 20 seconds is 42%.
Video is taking over as the lead audio-visual viewing tool, with online video now accounting for a fifth of all AV viewing. For younger audiences, this viewing figure can be as high as 39%.
60% of people say they are concerned there is too much VOD advertising, with 68% saying they’re concerned that the amount of VOD adverts will continue to increase. However, 54% of Irish consumers are positive about advertising when they know how long the ad will be, which shows that viewers understand that advertisements are necessary and are happy to accept their presence as long as the advertisements are targeted at relevant audiences for an appropriate length of time. In addition, 72% of consumers get very frustrated when they see the same ad online.
Ellen Kelliher, Head of Video at Core, says these research results should act as a wake-up call for advertisers, who may not realise the long-term damage that uninteresting advertisements or ill-advised targeting can do to their brand.
“VOD in Ireland is at a junction and could go one of two ways – either further volume growth of advertising on free video channels, driving viewer frustration and ultimately brand damage or responding to the view from a younger, more savvy audience that relevant, non-frustrating advertising can pay for content they enjoy.
With so many online, paid for and traditional channels now available to viewers, people aren’t as loyal as they may have been in the past. With the research showing that 57% of consumers say that they have a negative perception of brands that don’t let them skip their video ads online, advertisers have to work harder and smarter to ensure they engage with their audiences in a meaningful way.
Our research shows that consumers react positively to short, timely and relevant adverts and they have no issues with avoiding content which doesn’t feel applicable to them. We would call on advertisers to be more mindful of their consumers in their media planning and scheduling.”
Based on their research, Core says that the advertising industry must work to improve the online video experience. To avoid intrusive behaviour in the online video market, the company is proposing that advertisers follow these recommendations to ensure both advertisers and consumers have their needs met when it comes to VOD:
- Tailor your content to the platform for best user-experience – Online video works strongest when the video is suited to the device being used. Whether it’s short-form YouTube content or long-form broadcaster video consumed on mobile or desktop, advertisers need to ensure they approach each platform separately to provide the smoothest experience for the user on the player. Locally, over 50% of video ads are regurgitating the TV ad online, and this is having a negative impact on both video in general and, more importantly on the brands advertising.
- The following lengths are recommended based on Core’s data analysis:
10 seconds for short form (less than 15 mins)
20 seconds for long-form (15 mins+)
Include any ‘call to action’ at the start of an ad – Remember 75% of people skips ads on YouTube. By playing the ads up front at the start, it allows consumers to get the ads out of the way and enjoy their content uninterrupted and they are also less frustrated.
Core employs a team of 310 people and has been voted Agency Network of the Year for the last six years at the Media Awards and the company was also recently voted one of the top workplaces in Ireland by the Great Place to Work Institute for the ninth year running.