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Despite Increased Video Ad Loads, Completion Rates Are High

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FreeWheel has taken the pulse of the online video ad world in its first quarter, 2012, report, and the signs are good. The video advertising management software company notes that while content owners are experimenting with higher ad loads in premium programming, completion rates are holding steady. That means that content owners trying to gain more revenue from streamed programs don't need to worry about turning off viewers with additional video ads.

As more long-form video content goes online, FreeWheel finds that mid-roll video ads are increasing at a faster rate than pre-rolls. Midrolls are increasing by 115 percent year-over-year, compared to a 45 percent increase for pre-rolls. Mid-rolls now make up 23 percent of all video ad views, the report notes.

While Roku set-top boxes and Apple iPads dominate the discussion for non-computer video viewing, FreeWheel points out that the Microsoft Xbox is the real star. It led the field with 28 percent of all non-computer video streaming, and enjoys a higher household penetration rate than the iPad (26 percent). Looking at recent content deals, FreeWheel predicts even higher Xbox viewing to come.

Video ad demand traditionally slumps in the first quarter of the year, but FreeWheel found that demand for video ads in premium content held this quarter. That shows a strong advertiser demand for premium streaming video.

Those interested can download the full report for free.

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