Quibi, the mobile video streaming service set to launch next month, has capped its ad partnerships for its first year, according to executives.
- Why it matters: Quibi has sold out its first year in ads — $150 million in revenue — ahead of its April 6th launch. That number is fixed via pre-sold ad agreements with those 10 companies.
Details: The 10 exclusive partners include Progressive, Discover, General Mills, Procter & Gamble, AB InBev, Taco Bell, Pepsi, T-Mobile, Google and Walmart.
- At launch, Quibi will feature ads from over 25 brands that are owned by those 10 ad partners.
- It will not expand the number of partners in its first year, although those partners can introduce new brands to the platform during that time.
- As a part of its launch pitch, Quibi promised advertisers that they would be the exclusive brand in its vertical.
How it works: Companies can run a pre-roll ad of 6, 10 or 15 seconds before an episode of any show. Each brand will exclusively sponsor each episode of a show.
- Longer ads are recommended for longer Quibi shows that are in the 5-7 minute range. Shorter ads are recommended for shorter shows in the 1-5 minute range.
- In total, Quibi will run 2.5 minutes of advertising for every hour of programming. Traditional television typically runs roughly 16 minutes of ads per hour.
- All ads are non-skippable, and the platform won't have any mid-roll ads or ad pods.
- Quibi hasn't accepted any political ads as part of its first year of ad sales, according to a source familiar with its plans.
The big picture: All advertisers will be encouraged to leverage Quibi's "turnstyle" technology, which allows users to seamlessly switch between vertical and horizontal video on their phones.
- Quibi's advertising efforts are led by former Flipboard executive Nicole McCormack, who reports directly to Meg Whitman, CEO of Quibi.
Be smart: Whitman told Axios in an interview in January that she expects the majority of subscribers to Quibi's service to choose the ad-supported tier, which puts more pressure on the company to get the ad experience right.