As pause ads charm streamers like Peacock and Netflix, advertisers weigh their value

Instead of only relying on pre-scheduled ad breaks, advertisers are finding ways to engage viewers when they hit pause.

“Pause ads allow streaming services to create more inventory without having to drive more time spent,” said our analyst Ross Benes. He noted that connecting your brand to the reason consumers pause can be an effective strategy—Charmin, a frequent pause advertiser, ties its messaging to bathroom breaks.

YouTube rolled out pause ads on smart TVs in September, Netflix tested a shoppable pause format with Google last year, and NBCUniversal announced the expansion of pause ads into live TV at CES. Additionally, 51% of viewers have taken some sort of action after seeing a pause ad, according to the Video Advertising Bureau. As the CTV space continues to grow, pause ads are likely to play an increasingly important role in the marketing.

Expanding pause events

NBCUniversal positions pause ads as part of a full-funnel strategy, from audience targeting to QR codes and commerce, says Gina Reduto, executive vice president of strategy for advertising and partnerships. The media company boasts the ads' ability to drive conversions, reporting a 43% lift in site visitation and 43% higher memorability than standard ads.

“It’s important to keep in mind that it’s user-initiated, and the consumer has made the decision to pause,” she said. “They’re a great way for advertisers to have a full-screen opportunity to engage with consumers.”

NBCUniversal also offers clients an Ad Creative Engine, which uses generative AI (genAI), machine learning, and statistical models to optimize ads based on historic performance. These changes could include placement of a logo, imagery, and amount of text, said Reduto.

“With pause ads, we’ve analyzed over a billion impressions,” she said, stressing the value of that contextual data in helping clients reach their advertising goals. “We can connect the creative elements that drive the performance the advertiser is looking for.”

Building an omnichannel strategy

Given their digital nature, pause ads should be seen as a "sequential offering" rather than a replacement for traditional creative, said Keynes Digital CEO and founder Dan Larkman.

In one study, he said his agency found that traditional TV ads -drove a $2.03 cost per site visitor, while the same commercial—enhanced with offers and QR codes—resulted in a significantly higher $7.79 cost per site visitor.

“I don’t see [pause ads] as a new budget line,” said Larkman. “I don’t think it would take budget from streaming TV in the sense of a TV commercial, because they are two very different offerings.”

Selling short-lived touchpoints

Up to 40% of pause events come from live content during big tentpole events, NBCUniversal reports. The media company pushes its live TV offerings this year, Reduto positions pause ads as an opportunity for brands to align with that excitement—whether that’s through commerce offerings or audience targeting.

“The fact that consumers are pausing means they are connected to that content and they don’t want to miss a moment,” said Reduto. “It’s a canvas to [reach] them when they are engaged.”

While the non-intrusive format is an attractive play, a clear downside is the creative brevity, said Michael Katrenak, media director at B2B agency Transmission. Pause ads can support brand recall and frequency, but more involved storytelling is crucial in building memorable brands, he said.

“I don’t think it’s the time to tell a story,” said Katrenak. “It’s the time to make sure people remember your name.”

 

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First Published on Feb 11, 2025