Valleywag recently reported that YouTube is opening up sponsorship of its front page to large-format ads (we’re talking 600×300 “mega-banners”). Although most of the article focused on YouTube’s use of innovative formats to help monetize its enormous traffic (something it hasn’t really figured out yet), the big story here is that large-format, exceptionally high-quality ads are being favored by ad agencies for one reason: they create a high-quality user experience (and engagement metrics prove it).

An example: the 300×600 ad format; an official IAB ad unit, appropriately named a “half page ad.” Its width alone makes it far more appropriate for broadsheet-style news sites—much more of a comfort zone for ad agencies—than blogs. It also replicates the ad size we see in magazines. High-volume advertisers like AOL and MSN are promoting them as part of their portfolio. Why? Larger ads perform better, from both a CTR and conversion standpoint.

Brand advertisers are willing to spend, provided the context (the site) and the creative match and build their brand equity. As more and more of them move their spend online, to follow the traffic, from offline sources, big opportunities will develop for creative developers who can develop extremely high-quality, and large, ads, and sites that can accommodate them. Crisp, smooth video, and high-res, large creatives with the real estate necessary to convey a message, will score major wins. In short, online ads that replicate the ads we’ve gotten used to on primetime television and high-quality magazines will earn publishers excellent CPMs.

Here are some examples of creative, high-quality interactive video-enabled ads. Given the premium paid for novelty and quality, we should expect to see more of these:

• BC Hydro (pull the light switch)
• HSBC
• Emirates Airlines (click on the Jazz sign)
• Wags Boutique

This entry was posted on Tuesday, September 2nd, 2008 at 11:53 pm and is filed under Online Advertising. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.