Introducing the FreeWheel Video Monetization Report - Q3 2010 Trends

SAN MATEO, Calif., Nov. 11, 2010 /PRNewswire/ --  Video monetization technology company FreeWheel today released its inaugural quarterly Video Monetization Report (available here or go to http://www.freewheel.tv/videomonetizationreport) which looks at advertising trends for professional digital video content across the web and wireless devices. FreeWheel now serves 25% of all video ads viewed in the U.S., over 3 billion video ads per quarter (pre-roll, mid-roll, and post-roll).

Key Findings:  Professional Digital Video – More Like TV Than Ever Before

• Professional video content delivered through the wired and mobile web is being increasingly monetized and consumed like television.

• While the majority of ads are pre-rolls that appear before content, ads that appear within content – mid-rolls – are the fastest growing ad format in the market, indicating that ad loads are becoming more like television.

• Consumers are becoming more accustomed to viewing ads before and during content, reflected in the increasing video ad completion rates.

• In comparison to user generated content, the value exchange between the consumer and the media companies for professional content is understood:  professional video content advertising has high relative completion rates.

Using data from Q1 through Q3 of 2010, the report observes that premium digital content is increasingly monetized in ways that closely resemble traditional broadcast television. Publishers are using more combinations of pre-roll, mid-roll, post-roll, and overlay ads throughout premium content as shown by ad volume growth rates. Completion rates for video ads (pre-roll, mid-roll, and post-roll) have steadily risen throughout the year with mid-rolls showing the highest average ad completion rates at 90%.  Consumers are learning over time that – like television – top quality content is monetized in part with advertising.

In Q3 2010, pre-roll video ads remained the dominant video ad format, representing 91% of the video ad volume, though mid-rolls show the highest growth rates (693% since Q1) and represent 8% of total video ad volume. As ad-supported revenue models continue to prove effective, and as consumers continue to show tolerance for watching ads, mid-roll volume is expected to continue to grow.

"Clearly the hero of this story is mid-roll adoption by both content owners and consumers," said Doug Knopper, co-founder and co-CEO of FreeWheel. "The largest media companies are increasingly monetizing their most valuable content in ways that closely mimic television, and consumers are indicating that they understand that to continue to access their favorite shows, they will be exposed to ads. These are all good trends for video and television industries and indicate that real revenue generation across devices and platforms is possible."

"We know there is a lot of data out there trying to pin-point trends for where a converged world of 'online video' and 'television' is going," Doug continued. "We are in a unique position to provide some aggregated trends and best practices, representing billions of video ads that help monetize the highest quality content. We feel this first report offers some strong indication of how real money will be made from this space long term."

About FreeWheel

FreeWheel offers the most formidable system for digital video ad management and monetization. Founded and led by a team of executives from the world's leading technology companies, FreeWheel's solution-set has already armed companies like Turner, ESPN, Warner Brothers, CBS, VEVO, Discovery, and others with the tools and services necessary to make more money from their video content.

Monetization Rights Management® is FreeWheel's flagship product. It empowers content owners and distributors to successfully manage ad sales rights, accurately forecast inventory, deliver yield-optimized ads, and analyze video business performance – across any device, anywhere the video appears. Follow @FreeWheeldotTV. Learn more at www.freewheel.tv.

SOURCE FreeWheel