In the early 1990s, online banner advertising begun as the page owners sought additional revenue streams to support their content.
The first clickable web ad was sold by global network navigator in 1993 to a Silicon Valley law firm.
In 1994, web banner advertising became mainstream when HotWired, the online component of Wired Magazine, sold banner ads to AT&T and other companies.
The first AT&T ad on HotWired had 44% click-through rate, and instead of directing clickers to AT&T’s website, the ad linked to an online tour of seven of the world’s most acclaimed art museums.
Video advertising contest of online video display advertisements that appears before, during or after a video stream on the internet.
The advertising units are like the traditional spot advertising you see on television, however, they are often ‘cut down’ to be shorter than their Television counterparts if they run online.
As of January, 2018, the ads can be at least 20 seconds long.
Viewers must watch the ads before they are able to watch the selected video.
These ads are only available by reservation buy only and are not available to advertisers via auction.
Youtube uses a range of signals, including content type, and how a user discovered the video, to help determine the best time to serve a video ad.
Youtube also shows other ad formats when their system determines that they would provide a better user experience.
From a user’s perspective, skippable ads are better than non-skippable ads. A user is most likely going to skip ads in other to enjoy their videos.
To a user, the skippable ads which enable the user to skip only after 5 seconds before watching his/her vide is not too painful.
Because of skippable ads, most advertisers make their ads look attractive in the first 5 seconds. As a result, a large majority of ads now run as traditional non-skippable ads.
To the advertiser, non-skippable are great; they are pay only if users watch their full 30 seconds video.
Advertisers now get their money’s worth out their advertisements as users are in a way “forced” to watch the 30 ad.
Overall, Youtube might face some major criticism and backlash before this change settles in.