Fairfax retains autoplay video policy on websites

FAIRFAX Media is sticking by its controversial policy of automatically playing videos on its websites.

By InvestSMART · 9 Apr 2010

By InvestSMART ·
9 Apr 2010

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FAIRFAX Media is sticking by its controversial policy of automatically playing videos on its websites.

It cites a big spike in traffic that it says will propel it to eclipse ninemsn in volumes of video traffic.

Fairfax's digital arm is finding itself increasingly out on a limb from the rest of the industry, which says that autoplay when a video starts without the user initiating it and registers as a view turns viewers away.

It comes as media buyers step up efforts to produce guidelines to ensure advertisers, who are expected to spend almost $60 million on ads involving online videos, can distinguish between videos initiated by the user and those that are on autoplay.

But Fairfax, owner of The Age, is releasing data to counter the prevailing view, saying a higher percentage of people watch autoplay videos half its traffic to the end than are turning them off. When autoplay was introduced in September, critics assumed a big drop in video viewing, but Fairfax is reporting the completion rate of user-initiated video and autoplay is within 10 per cent of each other.

Fairfax Digital head of video Ricky Sutton said: "We haven't lost video streams we've increased them by 233 per cent in three months. That's proof that people want more video and we are giving it to them. It's dangerous to make assumptions about people's consumption [habits] in a rapidly changing market." Last month Fairfax recorded 9.4 million streams to ninemsn's 9.9 million and expects to overtake soon the PBL Media and Microsoft-backed portal.

Mark Higginson, director of analytics at the researcher Nielsen Online, said: "It tells you nothing about the consumer's intentions. One interpretation could be that consumers are getting tired of having to stop it. Until we ask them . . . we just don't know."

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Frequently Asked Questions about this Article…

What is Fairfax Media's autoplay video policy on its websites?

Fairfax Media has kept a controversial autoplay policy that automatically starts videos on its websites without a user initiating them. The company counts those autoplay starts as video views as part of its digital video traffic.

Why is Fairfax sticking with autoplay video despite industry criticism?

Fairfax says autoplay has driven a big spike in video traffic — a 233% increase in three months, according to Fairfax Digital head of video Ricky Sutton — and expects that growth will help it overtake rivals like ninemsn and other portals. Fairfax is using its own data to argue audiences want more video, not less.

How much have Fairfax's video streams increased and how does that compare to competitors?

Fairfax reports a 233% increase in video streams over three months. Last month Fairfax recorded 9.4 million streams versus competitor ninemsn's 9.9 million, and Fairfax says it expects to overtake the PBL Media/Microsoft-backed portal soon.

What do advertisers and media buyers say about autoplay videos and ad measurement?

Many in the industry warn autoplay can turn viewers away and can blur the line between user-initiated and automatic views. Media buyers are developing guidelines so advertisers — who are expected to spend almost $60 million on online video ads — can distinguish between videos started by users and those that play automatically.

Does Fairfax have data showing autoplay viewers actually watch videos to the end?

Yes. Fairfax is releasing data showing a relatively high completion rate for autoplay videos. The company says about half of its autoplay traffic watches to the end and that completion rates for user-initiated videos and autoplay are within 10% of each other.

What do independent analysts say about interpreting autoplay video metrics?

Mark Higginson, director of analytics at Nielsen Online, cautions that autoplay numbers don’t reveal consumer intent. He says those metrics could mean viewers are engaged or that they're simply letting videos play rather than stopping them — meaning further consumer research is needed to understand behavior.

What should everyday investors watch for regarding autoplay policies at media companies?

Investors should monitor measurable outcomes reported by companies — traffic growth, stream counts, advertiser demand and emerging industry measurement standards — while noting independent verification is limited. The article suggests autoplay can boost raw stream numbers, but how that translates into durable ad revenue or consumer loyalty remains an open question.

How could autoplay policies affect online video advertising spending and future standards?

Autoplay is already prompting action: media buyers are working on guidelines to separate user-initiated views from autoplay views so advertisers can better judge value. With nearly $60 million expected to flow into online video ads, clearer measurement standards could influence how advertisers allocate budgets and how publishers report video performance.