UK startup aims to help publishers deliver viewable-only inventory with new advertising solution

A new advertising solution proposed by a UK startup, OnScroll, promises to make to make online publishers’ transition to the proposed viewability standards set by the Internet Advertising Bureau easier.

The outfit published an infographic entitled “The State of Viewable Impressions”. On it, the company claims that just 46 per cent of all online ads served meet the IAB’s Making Measurement Make Sense (3MS) guidelines.

That, according to OnScroll, results in $11.7 billion wasted on adverts that do not meet the IAB’s definition of a viewable impression (at least half of an ad is viewed for a minimum of one second). There are at least 20 reasons why an advert may not be displayed and the customer still charged (other than ad blockers).

“The online display industry is moving away from CPM and towards CPMv (cost per media viewed) as the standard currency of trade. Publishers shouldn’t view this transition as a threat, but an opportunity. With OnScroll, publishers can deliver dynamic inventory based on how their users engage with their web pages. The end result is more ads of a higher quality being served, delivering increased revenues and for advertisers this means higher engagement rates which will ultimately deliver much better ROI on their advertising dollars,” said Babac Vafaey, co-founder of OnScroll.

Early tests on some of UK’s leading websites show that available advertising inventory went up by 10 percent on average, with CTRs and hover-over rates up by 31 per cent and 39 per cent respectively.

A back-of-a-napkin calculation show that, at equal CPM, revenue gains are sizeable and at equal CTR, they could increase by a third.

Research firm Forrester predicts that publishers will be able to command higher CPM rates for viewable inventory, forecasting an increase in rates of 76 per cent by 2017, a welcomed revenue boost for them.

The online service, which is currently in private beta, will officially launch in March 2013 at SXSW Interactive, with more details to follow on the full suite of available features and analytics available.

Disclaimer: OnScroll has been cofounded by Babac Vafaey, a former colleague of mine at Net Communities and Andy Evans who is the founder and managing director of Net Communities, the publisher of ITProPortal.