A little under two years ago, Inside Digital Media predicted that sponsors would ultimately demand they only pay for video ads that actually get watched. (Thinking the Unthinkable About Video Ads – September 18, 2009). We reasoned the success of the cost-per-action pricing of Google AdWords would force change. Since sponsors only pay Google when viewers “click on” AdWords text, they would ultimately apply such a cost-per-action standard to banner and video ads as well.
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Last week a YouTube executive provided confirmation at WPP Group’s Global Video Summit. WPP Group is a leading advertising and media management company. YouTube’s Product Manager for Video Monetization, Baljeet Singh, was a Summit guest where he forecast half of video ads by 2015 would be cost-per-view. He explained how it is starting on the Internet.
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