This document summarizes Christopher Ferrel's presentation at SXSW 2017 about the rise of skippable ads. Some key points: - Skippable ads have surpassed non-skippable ads and will dominate digital ad revenue by 2021 as users increasingly demand control over their ad experiences. - Measuring the value of skipped ads is challenging as value varies depending on how much of the ad is viewed. Brand recall is higher for ads that are 40% completed. - Creative works best in the skippable era if it engages users in the first 5 seconds and gives them a reason to continue watching rather than skipping. - Both advertisers and users prefer skippable formats like outstream video

2. SXSW 2017
Our Skip Button Love Affair
Christopher Ferrel
Digital Strategy Director
The Richards Group
Hyatt Regency Austin
Zilker Ballroom 1
March 14, 2017
11:00 AM

3. “I .”Skip Ads ►|
#skipbuttonlove

4. I’m an ad
#skipbuttonlove

5. #skipbuttonlove

6. Does the ability to skip ads matter?
#skipbuttonlove

7. We are entering a new era of digital ads
Mobile
Social
Video
User choice
#skipbuttonlove

8. Welcome to the skippable era
#skipbuttonlove

9. The questions you should be asking
Should your ad be skippable or non-skippable?
Can you measure the value of a skipped ad?
Does your creative work in the skippable era?
#skipbuttonlove

10. Should your ads be
skippable or non-skippable?
#skipbuttonlove

11. Non-skippable ad revenue levels off
Digital ad revenue, non-search ($ billions)
Source: IAB / eMarketer (2008-2016), BI Intelligence (2017-2021)
$0
$10
$20
$30
$40
2008
2010
2012
2014
2016
2018
2020
2021
#skipbuttonlove
Non-skippable

12. Skippable ads surpassed non-skippable
Digital ad revenue, non-search ($ billions)
Source: IAB / eMarketer (2008-2016), BI Intelligence (2017-2021)
$0
$10
$20
$30
$40
2008
2010
2012
2014
2016
2018
2020
2021
#skipbuttonlove
Non-skippable
Skippable

13. Skippable ads will dominate by 2021
Digital ad revenue, non-search ($ billions)
Source: IAB / eMarketer (2008-2016), BI Intelligence (2017-2021)
$0
$10
$20
$30
$40
2008
2010
2012
2014
2016
2018
2020
2021
#skipbuttonlove
Non-skippable
Skippable

14. Our skip button love affair
#skipbuttonlove

15. #skipbuttonlove
Emotion analysis
9% joy, 82% anger
Source: Crimson Hexagon, 83k most recent posts
0%
25%
50%
75%
100%
Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017
Skip Ad ►|
Joy
Anger

16. #skipbuttonlove
Emotion analysis
9% joy
Source: Crimson Hexagon, 83k most recent posts
0%
25%
50%
75%
100%
Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017
Skip Ad ►|
Joy

17. #skipbuttonlove
Emotion analysis
9% joy
Source: Crimson Hexagon, 83k most recent posts
0%
25%
50%
75%
100%
Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017
Skip Ad ►|
Joy

18. #skipbuttonlove
Emotion analysis
9% joy
Source: Crimson Hexagon, 83k most recent posts
0%
25%
50%
75%
100%
Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017
Skip Ad ►|
Joy

19. #skipbuttonlove
Emotion analysis
82% anger
Source: Crimson Hexagon, 83k most recent posts
0%
25%
50%
75%
100%
Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017
Skip Ad ►|
Anger

20. #skipbuttonlove
Emotion analysis
82% anger
Source: Crimson Hexagon, 83k most recent posts
0%
25%
50%
75%
100%
Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017
Skip Ad ►|
Anger

21. #skipbuttonlove
Emotion analysis
82% anger
Source: Crimson Hexagon, 83k most recent posts
0%
25%
50%
75%
100%
Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017
Skip Ad ►|
Anger

22. #skipbuttonlove
Emotion analysis
82% anger
Source: Crimson Hexagon, 83k most recent posts
0%
25%
50%
75%
100%
Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017
Skip Ad ►|
Anger

24. #skipbuttonlove
Emotion analysis
82% anger
Source: Crimson Hexagon, 83k most recent posts
0%
25%
50%
75%
100%
Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017
Skip Ad ►|
Anger

25. #skipbuttonlove
Emotion analysis
82% anger
Source: Crimson Hexagon, 83k most recent posts
0%
25%
50%
75%
100%
Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017
Skip Ad ►|
Anger

26. #skipbuttonlove
Emotion analysis
82% anger
Source: Crimson Hexagon, 83k most recent posts
0%
25%
50%
75%
100%
Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017
Skip Ad ►|
Anger

27. #skipbuttonlove

28. #skipbuttonlove
Emotion analysis
82% anger
Source: Crimson Hexagon, 83k most recent posts
0%
25%
50%
75%
100%
Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017
Skip Ad ►|
Anger

29. #skipbuttonlove
Emotion analysis
82% anger
Source: Crimson Hexagon, 83k most recent posts
0%
25%
50%
75%
100%
Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017
Skip Ad ►|
Anger

30. #skipbuttonlove
Emotion analysis
82% anger
Source: Crimson Hexagon, 83k most recent posts
0%
25%
50%
75%
100%
Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017
Skip Ad ►|
Anger

31. #skipbuttonlove

32. 2/23/2017 Print - Study: Pre-Roll Ads Dramatically Increasing Ad-Block Installs - Advertising Age
Study: Pre-Roll Ads
Dramatically Increasing
Ad-Block Installs
Study Surveys 9,000 People Who Either Have or Are
Aware of Ad-Blocking Tech
By George Slefo
Published: January 26, 2016
Video ad tech company Teads released a study Tuesday that
aims to provide insight as to what motivates people to use ad
blockers.
Research Now conducted the study and surveyed 9,000
people. Active users of ad blockers, including mobile, and
those who are aware of ad blockers but have not yet installed
them, were surveyed for the study.
The research said pre-roll ads were among the most intrusive,
with 41% of respondents saying they installed the ad-blocking
software due to the ad format. Additionally, Hispanics are 78%
more likely to use a mobile ad blocker while men are 22% more
likely overall to use the software on mobile devices, the study
said.
Teads makes video technology that autoplays when you're
reading a story, for example. Its clients include Mashable and
Forbes, among others. It claims its tech is not intrusive because its ads can be closed by a user as soon as they appear.
Related Stories
IAB to Advertisers and Content Providers: 'We
Messed Up'
IAB CEO Delivers Fire-and-Brimstone Speech
Against For-Profit Ad Blockers
Google's Ad Boss on Ad Blocking, AMP Ad
Viewability and Enhanced Campaigns
As IAB Bars One Ad Blocker From Its Summit, It
Welcomes Another One on Stage
For IGN, a Tech-Savvy Audience Means a Big
Hit From Ad Blockers
#skipbuttonlove
Aware of Ad-Blocking Tech
By George Slefo
Published: January 26, 2016
Video ad tech company Teads released a study Tuesda
aims to provide insight as to what motivates people to u
blockers.
Research Now conducted the study and surveyed 9,00
people. Active users of ad blockers, including mobile, a
those who are aware of ad blockers but have not yet in
them, were surveyed for the study.
Related Stories
IAB to Advertisers and Content Providers: 'We
Messed Up'
IAB CEO Delivers Fire-and-Brimstone Speech
Against For-Profit Ad Blockers

33. #skipbuttonlove

34. #skipbuttonlove
Can you measure the
value of a skipped ad?

35. Non-skippable Skippable
Are all seconds created equal?
Forced time-spent
Optimize to completions
Voluntary time-spent
Optimize to ???
#skipbuttonlove

36. Ad value vs audience retention
Source: Facebook, YouTube
0%
25%
50%
75%
100%
0 25% complete 50% complete 75% complete 100%
Measurement in the skippable era
#skipbuttonlove
Audience
retention
Brand lift

37. THE VALUE OF THE AD VARIES BASED
ON HOW MUCH IS COMPLETED
Value of Impression based on Unaided Brand Recall
100%
75%
BRANDRECALL
AN AD THAT WAS ABOUT
40% COMPLETED IS WORTH
inc
cou
e
#skipbuttonlove

38. Ad value vs audience retention
Source: Facebook, YouTube
0%
25%
50%
75%
100%
0 25% complete 50% complete 75% complete 100%
Measurement in the skippable era
#skipbuttonlove
Audience
retention
Brand lift
$ $$ $$$ $$

39. #skipbuttonlove

40. The currency of the
skippable era is time-spent
#skipbuttonlove

41. Does your creative work
in the skippable era?
#skipbuttonlove

42. #skipbuttonlove

43. #skipbuttonlove

44. Changes in the Amount and Methods of Travel
During the past fifteen years, people have been "going
places and doing things," farther and faster than ever
before in our history. This "modern tempo" was the result
of fundamental changes in American transportation brought
about by the creation of numerous small-payment, install
ment-buying plans. By means of this process, it became
possible for any person to become the operator of a self-
propelled vehicle the automobile.
These changes may be best illustrated by comparative
statistics. In 1920, the passenger mileage of steam railways
rose to a peak of nearly fifty billion miles and declined to
eighteen billion five hundred million miles in 1935. Pas
Changes in the Amount and Methods of Travel
During the past fifteen years, people have been "going
places and doing things," farther and faster than ever
before in our history. This "modern tempo" was the result
of fundamental changes in American transportation brought
about by the creation of numerous small-payment, install
ment-buying plans. By means of this process, it became
possible for any person to become the operator of a self-
propelled vehicle the automobile.
These changes may be best illustrated by comparative
statistics. In 1920, the passenger mileage of steam railways#skipbuttonlove

45. Lessons from 1938
1938
“Modern Tempo”
Disruptive tech = cars for all
#skipbuttonlove
2017
“Busy” badge of honor
Disruptive tech = smartphones

46. Lessons from 1938
1938
“Modern Tempo”
Disruptive tech = cars for all
Physical destinations
#skipbuttonlove
2017
“Busy” badge of honor
Disruptive tech = smartphones
Digital destinations

47. Lessons from 1938
1938
“Modern Tempo”
Disruptive tech = cars for all
Physical destinations
Stand out in 7 words
#skipbuttonlove
2017
“Busy” badge of honor
Disruptive tech = smartphones
Digital destinations
Stand out in 5 seconds

48. itself. One may not know what the boy looked like who
brought the telegram, however well he remembers the
message. It is not the postman who makes an impression,
but the message he brings.
The Medium Cannot Deliver Readers
After delivering the message in its specified form and size,
the medium is in no way responsible for securing reading or
other attention to the message. That is the responsibility
of the one who writes the message the advertiser. If a man
is too indifferent, too excited, or too much engrossed other
wise to read a telegram which he receives, it is not the fault
of the telegraph company. They performed their duty
when they delivered the message to him. So with the paid
space in a newspaper or magazine, the message may not
interest the one who buys the newspaper or magazine,
but the function of each of these media has been fulfilled
when it is delivered to the buyer. With the broadcasting
#skipbuttonlove

49. Lessons from 1938
1938
“Modern Tempo”
Disruptive tech = cars for all
Physical destinations
Stand out in 7 words
Power of pictures
#skipbuttonlove
2017
“Busy” badge of honor
Disruptive tech = smartphones
Digital destinations
Stand out in 5 seconds
Power of video

50. Lessons from 1938
1938
“Modern Tempo”
Disruptive tech = cars for all
Physical destinations
Stand out in 7 words
Power of pictures
Few opportunities to linger
#skipbuttonlove
2017
“Busy” badge of honor
Disruptive tech = smartphones
Digital destinations
Stand out in 5 seconds
Power of video
Always an opportunity to linger

51. Creative in the skippable era
Make me care in < :05
#skipbuttonlove

52. Creative in the skippable era
Make me care in < :05
Give me a reason to stay
#skipbuttonlove

54. Hero benefit
#skipbuttonlove

55. #skipbuttonlove

56. Anticipation
#skipbuttonlove

57. 1.8M views
1 min 19 sec avg
#skipbuttonlove

58. Challenge
#skipbuttonlove

59. 28M views
3 min 15 sec avg
#skipbuttonlove

60. Playground
#skipbuttonlove

61. 224M views
24 sec avg
#skipbuttonlove

62. Stand for something
#skipbuttonlove

63. 1.1M views
1 min 49 sec avg
#skipbuttonlove

64. Non-skippable Skippable
What’s the role for non-skippable in the skippable era?
Forced time-spent Voluntary time-spent
#skipbuttonlove

65. If ad is non-skippable,
just get to the point
#skipbuttonlove

67. Impact of the skippable era
#skipbuttonlove

68. 2017
Consistency in search ads
2000
AdAd
#skipbuttonlove

69. Inconsistency in non-search ads
Non-skippable Skippable
#skipbuttonlove

70. #skipbuttonlove
Auto
expand

71. #skipbuttonlove
Adhesive

72. #skipbuttonlove
Interstitials

73. #skipbuttonlove
Non-skippable
video

74. #skipbuttonlove
Skippable
video

75. Outstream
video

76. #skipbuttonlove
Native

77. #skipbuttonlove
Social

78. #skipbuttonlove
Social

79. Who’s winning?
Non-skippable Skippable
Auto
expand
Adhesive Interstitials
Skippable
video
Outstream
video
Native
Non-skippable
video
Social
Standard
banner
Advertiser preferred User preferred
#skipbuttonlove

80. Skippable ads win users and revenue
Digital ad revenue, non-search ($ billions)
Source: IAB / eMarketer (2008-2016), BI Intelligence (2017-2021)
$0
$10
$20
$30
$40
2008
2010
2012
2014
2016
2018
2020
2021
#skipbuttonlove
Non-skippable
Skippable

81. Five forces of the skippable era
+98% from titans of skippable, Google and Facebook
+9% from companies who only sell skippable ads
-7% from non-skippable ad networks
#skipbuttonlove

82. #skipbuttonlove
Without skippable ads,
digital ad revenue is in decline

83. Five forces of the skippable era
+98% from titans of skippable, Google and Facebook
+9% from companies who only sell skippable ads
-7% from non-skippable ad networks
Rise of ad blockers
#skipbuttonlove

84. Ad blockers primarily impact non-skippable
Digital ad revenue, non-search ($ billions)
Source: IAB / eMarketer (2008-2016), BI Intelligence (2017-2021)
$0
$10
$20
$30
$40
2008
2010
2012
2014
2016
2018
2020
2021
#skipbuttonlove
Non-skippable
with ad blocker impact
Skippable

85. Five forces of the skippable era
+98% from titans of skippable, Google and Facebook
+9% from companies who only sell skippable ads
-7% from non-skippable ad networks
Rise of ad blockers
Overhaul of IAB’s ad portfolio
#skipbuttonlove

86. #skipbuttonlove

87. #skipbuttonlove

88. #skipbuttonlove

89. https://www.iab.com/news/lean-principles-criteria-scoring/
selected for delivery through the use of an online behavioral adve
Advertising system must bear the AdChoices Icon – which means
publishers must be members of the Digital Advertising Alliance.
Skippable
Preliminary research implies strong consumer demand for skip – t
that unskippable video ads are a primary driver for installing ad b
to skip would cause some ad blocking users to reconsider.
#skipbuttonlove

90. Non-skippable Skippable
Auto
expand
Adhesive Interstitials
Skippable
video
Outstream
video
Native
Non-skippable
video
Social
Standard
banner
Impact of IAB’s new ad portfolio
#skipbuttonlove
X
w/ close button
<:15 only
Non-invasive only
w/ close button

91. Ask the right questions. Win the skippable era.
Should your ad be skippable or non-skippable?
Can you measure the value of a skipped ad?
Does your creative work in the skippable era?
#skipbuttonlove

92. Go forth and .Skip Ads ►|
#skipbuttonlove