Impact of ad skipping on advertisers and publishersAd skipping refers to the practice of users skipping or avoiding ads when watching online video content. The video player will display a button “Skip Ad” when an ad becomes skippable, often after 5 seconds. Many viewers will click on it to continue watching and save their time. Ad skipping can be a serious issue for advertisers and publishers because it reduces the effectiveness and return on investment of their campaigns. Below we will discuss a number of its negative impacts of ad skipping on advertisers and publishers:
Reduced reach and engagementOne of the main impacts of ad skipping is reduced reach because ads that are skipped are not seen by users. These missing impressions limit the ability of advertisers to reach their target audience and can make it more difficult to achieve their ad serving goals. This can be especially frustrating for advertisers who are paying for premium ad placements or targeting a specific audience. Ad skipping also leads to decreased engagement because people who skip ads are much less likely to interact with or remember the ads that they are skipping. This makes it more difficult for advertisers to drive conversions and build brand awareness.
Decreased ad revenueAd skipping can also have a broader impact on the advertising industry as a whole. For example, ad skipping can lead to a decrease in ad revenue for publishers and platforms, which can in turn affect the quality and diversity of the content that is produced. Publishers earn less because advertisers are not going to pay the same rate for skipped ads. Video ad servers count a Skip event separately from a regular impression. Ad skipping can also create a downward spiral because advertisers may be less willing to spend their marketing budget at publishers or platforms where they know that the majority of their ads are not being seen by users. This can lead to a decrease in the overall amount of advertising, which can negatively affect website owners, publishers, ad servers and other ad tech vendors.
Negative user experienceSkipping ads can also lead to a negative user experience because fewer ad impressions might push advertisers and publishers to add more ad placements to compensate for skipped ads. As a result of more ads, users may become frustrated by the constant stream of ads, even if they are skippable. They may avoid websites or platforms that have a high number of ads. This can have a long-term impact on the reputation and success of an online business. As users become increasingly savvy at skipping ads, publishers and advertisers may be more inclined to produce click-bait, sensational or controversial content in order to capture attention and drive clicks, regardless of the accuracy or value of the content.
Overall, ad skipping is a complex issue that can have significant impacts on advertisers, publishers, and the advertising industry as a whole. It is important for all stakeholders to work together to find reasonable and acceptable solutions that balance the needs of advertisers and users in order to create a sustainable and effective advertising ecosystem.
Posted in Video Ad Server Ad Strategies by Watson F January 12, 2023
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