People Are Watching More Video Ads Per Online Video Than Ever Before

Online video advertising saw massive growth in the third quarter of 2011. Video technology company Freewheel reported that we are watching more Web videos than ever and, as a result, we’re watching more video ads too.

Online video advertising saw massive growth in the third quarter of 2011.  Video technology company Freewheel reported that we are watching more Web videos than ever and, as a result, we’re watching more video ads too. We recently reported that online video revenues are set to triple in 2011, thanks to this tremendous growth.

As you can see from the chart below, online video views grew by 97 percent in the third quarter of 2011 while video ad views grew by a whopping 128 percent.  Peter Kafka of AllThingsD reports that this is the first time that online video ad growth has surpassed online video view growth. These statistics came from an analysis of nearly 12 billion videos on a variety of sites, including Turner, ESPN, Fox, Univision and VEVO.

Freewheel also reported that the total number of video ads viewed per video is also going up.  This is especially noticeable if you look at the stats for long-form content.  In Q1 and Q2 of 2011 the average long-form video had about 3 ads.  In Q3 this number rose to 5, with a completion rate of 82 percent.

So what does all this mean?  It looks like as online video viewers are becoming accustomed to online video ads, advertisers are upping the volume.  When video ads first started popping up viewers were annoyed, many to the point of making claims that they were going to stop watching online video altogether!  But much like television ads, we’re growing accustomed to commercial breaks during episodes on Hulu and pre-rolls on our YouTube videos and, as a result, advertisers are showering us with more ads.

I do think that we will continue to see growth in online video ads, but I hope we’ll be seeing advertising pop up on videos where it doesn’t currently exist, rather than seeing much growth in the number of ads viewed per video.  But maybe that’s just wishful thinking.  Since online video reared it’s head we’ve gone from no ads to an average of 5 ads per piece of long-form content and we’ve barely batted an eye.  I wonder how much further things will go and when viewers will start fighting back.  Feel free to share your thoughts in the comments below!

Megan O’Neill is the resident web video enthusiast here at Social Times.  Megan covers everything from the latest viral videos to online video news and tips, and has a passion for bizarre, original and revolutionary content and ideas.