DigitalBeat

We’ve all hunted for the “X” to close those overlay ads that pop up during an online video, but MTV says pairing these ads with a short pre-roll ad is actually quite enjoyable for viewers.

In 2008, MTV began probing customers on ad formats, whittling its advertising possibilities down to three options. Finally, the company enlisted with market research group InsightExpress to get feedback from consumers in research called “Project Insight.” Tests were run across 50 million video streams on the Web sites of MTV, Comedy Central, VH1, Nick Jr. and CMT. In addition to testing likeability, MTV looked at ad awareness and purchase intent.

The result? Consumers favored a five-second ad that plays before the video, followed by a 10-second, semi-transparent banner ad that occupies the bottom third of the viewing window. MTV calls this “The Lower 1/3 Product Suite.”

Strangely, viewers didn’t respond as kindly when the overlay ad ran vertically and came from the right side of the window. These viewers actually preferred a traditional 30 second spot before the video. However, the “Sideloader” ad format did score well on ad awareness, and consumers said they enjoyed the overlay’s interactivity and movement.

As more people turn to the Internet for content, advertisers are scratching their heads, trying to figure out how to be most effective. Short-form content, such as music videos, pose a challenge because it’s not feasible to break the stream into ad-supported segments. That’s why we’re starting to see pop-ups in videos on YouTube and other portals.

MTV hasn’t said that it’s going full steam ahead with “The Lower 1/3 Product Suite,” but there doesn’t seem to be any conflict in the results. It’s not as if the network is facing a hard choice between ad awareness and likeability, so expect a lot more hunting for and clicking on the “X” in the future.

Next Story: Startup Spotlight: People Capital brings peer-to-peer lending to student loans
Previous Story: Got an App? – There’s a launch for that.