The news: Magnite announced Tuesday pause ads across several streaming providers, including DirecTV, Fubo, and Dish Media, to capitalize on the momentum of pause ads as a key opportunity to engage and convert connected TV (CTV) viewers.

The new format is compatible with the sell-side company’s automated workflows like Magnite ClearLine and is currently being tested with third-party demand-side platforms. Per Mike Laband, group SVP of US revenue at Magnite, the format unites two key goals: Maximizing monetization possibilities while maintaining a satisfying viewer experience.

Pause ads transform CTV: The format is growing because it embodies the unique power of CTV by providing ad formats linear isn’t capable of. And so far, pause ads are proving successful.

• 67% of Gen Zers and millennials prefer pause ads over frozen screens, per a Magna and DirecTV study—and 51% of viewers overall will take action after seeing a pause ad, according to the Video Advertising Bureau.
• Across eight CTV ad formats tested by IAB, pause ads outperformed across the board: These ads were most likely to offer the best user experience and to scale with standardization.
• The format represents a massive opportunity in CTV, with the majority of viewers who pause content staying paused for one to five minutes (54%) and 11% pausing for up to 15 minutes—giving advertisers ample time to drive action when viewers are engaged.

Interest is growing: Magnite’s move promises potential as several players expand into pause ads.

• Magnite’s expansion with Fubo builds on the streaming platform’s current success with the format after it became the first CTV platform to introduce programmatic biddable pause ads in May.
• NBCUniversal boosted site visitation and memorability by 43% after using pause ads.
• YouTube brought pause ads to smart TV screens last year, while Netflix also tapped into pause ads with shoppable formats alongside Google designed around “Emily in Paris.”

Our take: Pause ads have demonstrated their worth in the quickly growing CTV landscape—but those who see the most success with the format will be the ones who innovate before pause ads become standard practice.

The majority of users across generations prefer pause ads that include the ability to save offers/reminders, those that include product recommendations based on what the viewer is watching, and those that include clickable buttons to go to the brand’s site or app. Integrating these features and capitalizing on other opportunities like QR codes in pause ads will keep the format on its current growth trajectory.