In 2023, an average person is estimated to consume a whopping 17 hours of online video content per week. This statistic, combined with the fact that videos are twice as likely to be shared than any other content, indicates the significant potential of video ads for publishers.
With the recent reclassification of video ads by the Interactive Advertising Bureau (IAB) in March 2023, the conversation between instream and outstream video ads has become even more critical. This article will help you understand both types and guide you in choosing the best fit for your needs.
What Are Instream Video Ads?
Instream ads are the commercials you see while watching other video content, predominantly found on platforms like YouTube. They can be broadly classified into three types:
Linear Video Ads: occupy the full video player, interrupting the main content before, during, or after.
- Pros: High engagement due to their prominence.
- Cons: Potential to annoy viewers with their interruptive nature.
Non-Linear Ads: Displayed alongside the main content, usually at the bottom of the player. An exciting feature for publishers is the branded canvas unit, which imitates the OTT and CTV ad experience.
- Pros: Less intrusive; viewers can continue watching their video.
- Cons: May be less noticeable, leading to reduced engagement.
Companion Ads: These ads appear alongside the primary video content but aren’t part of the video stream, providing an additional interaction point. They boost brand visibility and tackle banner blindness.
- Pros: Expands the reach of the primary ad.
- Cons: Can be overlooked if viewers are engrossed in the main content.
Pros and Cons of Instream Video Ads:
Pros:
- High CPMs (Cost Per Thousand Impressions)
- Compatible with OTT and CTV
- Engaging and attention-grabbing
Cons:
- Can be perceived as intrusive
- Requires existing video content and a compatible video player
What Are Outstream Video Ads?
Outstream video ads are the ones that appear outside of a video stream, like in a sidebar or within the content of a webpage. They were initially created for mobile, but their success quickly translated to desktop usage. Types include:
In-Slide Outstream Video Ads: These ads stick to a corner of the webpage and follow users as they scroll, auto-playing without sound.
- Pros: Boosted ad viewability and non-intrusive.
- Cons: Can be quickly scrolled past or turned off.
In-Content Outstream Video Ads: These ads appear within the content and play based on how much of the ad is visible on the screen.
- Cons: Less engaging for rapid scrollers.
- Pros: Complement text-heavy content without disturbing reading flow.
In-Banner Video Ads: These are essentially banner ads but in video format.
- Pros: Captures attention more than standard banners.
- Cons: Might slow down the website if not optimized.
Pros and Cons of Outstream Video Ads:
Pros:
- Less intrusive
- Flexible and doesn’t require video content
Cons:
- More stringent regulations
- Less noticeable due to the mute-by-default feature
- Can slow down website performance
Out-stream ads are particularly beneficial for publishers since they don’t demand existing video content, offering flexibility and improving user experience.
Comparing Video Ad Formats to Others
To fully grasp the value of video ads, let’s compare them to other prevalent ad formats:
- Video Ads: High user engagement, varied intrusiveness levels, dynamic & immersive, and adaptable.
- Display Ads: Low engagement, low intrusiveness, less dynamic, and moderately adaptable.
- Native Ads: Medium engagement, low intrusiveness, varies in dynamism, and highly adaptable.
- Interstitial Ads: High engagement but can be highly intrusive, dynamic, and moderately adaptable.
Instream vs. Outstream: Which is Better?
The answer isn’t straightforward. If you have a large video library or want to set up an AVOD (Advertising Video On Demand) service, instream might be your go-to. However, if you want to enhance revenue on a non-video website, outstream could be ideal.
However, why not both? Combining the two might offer the best of both worlds, allowing publishers to maximize their ad inventory.
What you choose is entirely on you. Here’s a quick overview of the areas in which these formats excel.
Instream vs. Outstream Video Ads Overview
Monetization Potential
In-Stream Ads: With in-stream ads, there’s potential for higher CPMs due to their engaging nature. The placement within video content increases the likelihood of the ad being viewed, especially pre-roll ads. However, the reliance on video content can limit their scalability. Websites with a massive library of video content can significantly benefit from in-stream ads, but those without can find them challenging to implement.
Out-Stream Ads: Since out-stream ads don’t rely on existing video content, they offer a broader monetization opportunity for publishers. They allow websites without a video content focus to incorporate video advertising and benefit from its engaging nature. Given their flexibility and adaptability, out-stream ads can be integrated across various web pages, enhancing their potential to generate revenue.
Luna Media: Supporting Both Formats
Both in-stream and out-stream video ads have their merits and challenges. The right choice largely depends on the website’s content type, user base, and monetization objectives. In-stream video ads, with their engaging and immersive nature, are perfect for websites with extensive video content. Meanwhile, out-stream video ads offer a versatile solution for websites looking to incorporate video advertising without necessarily focusing on video content.
Ready to take your advertising game to the next level? Luna Media is your trusted partner in the evolving world of video advertising. With our expertise and innovative solutions, we can guide you in selecting the perfect video ad format for your needs and ensure that your ads resonate with your target audience.
