CTV and Ad Innovation: The Pause Ad
Photo: Adobe
Have you ever watched your favorite Movie or TV Show online or on a Connected TV app, paused the show to go to grab a snack, then noticed an ad come across your screen while the TV Show or Movie is paused? This Ad, which has become popular in the world of CTV and streaming video between 2023 and 2024, is known as the Pause Ad. Paramount Advertising defines the Pause Ad as “The Pause Ad is a non-disruptive format that connects your brand directly with audiences during a user-initiated break in the viewing experience.” (Source- Paramount Pause Ad Spec Sheet 2024)
In 2023, Variety reported that “Pause Ads’ Creep Onto Hulu, Peacock and Max as Streamers Seek New Revenue,” and in this report, Josh Mattison, senior vice president of revenue management and operations for Disney Advertising said that “As more media companies seek to goose subscriber rates by offering cheaper ad-supported versions of their streaming services, this type of commercial may become more handy. One of the main attractions of streaming, after all, is that it boasts fewer traditional commercials than its linear TV counterpart. The industry hopes that a pause ad — other “out of pod” commercial experiences are also in development — can appear on screen without upsetting a subscriber who gets viscerally roiled by the prospect of a glut of typical TV spots.” (Source: Variety- ‘Pause Ads’ Creep Onto Hulu, Peacock and Max as Streamers Seek New Revenue)
The Pause Ad is a dynamic, high impact ad that allows an advertiser mix top funnel awareness and lower funnel conversions within the same ad unit. By adding a call to action and a QR code, this can lead to trackable lower funnel conversations all while building awareness. For example, if McDonald’s wants to use the Pause Ad to drive awareness of a new meal deal and drive app downloads to order the new meal, the Pause Ad could be an effective option to both drive awareness and conversions at the same time.
In September of 2024, USA Today published a report- “YouTube rolling out ads that appear when videos are paused,” and noted that “YouTube's decision to expand pause ads comes after a 2023 pilot launch on smart TVs. Google Senior Vice President Philipp Schindler in April said the ads were “commanding premium pricing from advertisers.” While generally available on smart TVs, YouTube is experimenting with these ads across devices. “This is seamless for viewers and allows them to learn more about a brand,” YouTube spokesperson Oluwabukola Falodun said in an emailed statement.” (Source: USA Today- YouTube rolling out ads that appear when videos are paused)
As streaming video continues to increase, and as the market continues to shift from traditional linear TV and Cable channels to Online Video and Connected TV, Ad Innovations will continue to evolve as the industry continues to grow and evolve. Advertisers are always looking for fun new ways to reach their customers, and Digital Advertising is so dynamic and makes the options for innovation endless.
