2023 statistics showed that a person spent an average of 17 hours per week watching video content this year. Also, when compared to other content formats, videos are shared more than twice.
In advertising, publishers tend to be interested in video ad format which is now the top-grossing source of income. It has also been demonstrated that this ad type brings about better user engagement, wider audience reach, and revenue-boosting. We can notice how video ads can make a difference in this industry. Video ad is also a solution that PubFuture usually offers to publishers, which most publishers highly evaluate.
Before dwelling on Video ad monetization, PubFuture would like to help publishers to get acquainted with various Video ad formats. The following ad formats are the most basic ones to discuss: In-stream and Out-stream video ad.
IAB’s Video Ad Classifications: A Brief View
Four main types of video ads were listed in the Video ad classification system by IAB in March 2023. They are primary in-stream ads, accompanying content, no content/standalone, and interstitial ads. As time goes by, the advertising landscape changes. however, the difference between in-stream ads (i.e primary in-stream ads and accompanying content) and out-stream ads (i.e. standalone) is still maintained.
- Primary In-stream Ads – Video ads that appear before, during, or after a video stream on a video player, with sound enabled.
- Accompanying Content – Similar to primary Instream advertisement, except that the video content is not the main focus of the user’s attention.
- No Content/Standalone – Ads that we commonly refer to as outstream ads, i.e. standalone video advertisements not tied to any specific piece of content.
- Interstitial Ads – full-screen ads that cover the core content of a web page or app.
What are Video In-stream Ads and How do they work?
Video in-stream ads are advertisements appearing while a user is watching video content. You can easily find these ads on video-sharing platforms such as YouTube. Chances are you have ever seen an in-stream video ad before.
The Digital Video Committee of the Interactive Advertising Bureau (IAB) has simplified the digital video advertising buying and selling process by dividing this video in-stream ad into three main formats, which are:
- Linear video ads
- Non-linear video ads
- Companion ads
Linear video ads
Among the three types of in-stream ads, linear video ads are commonly found. They are much like traditional TV advertisements because they can show up before (pre-roll), during (mid-roll), or after (post-roll) a video content stream. These in-stream advertisements are virtually impossible to skip and help keep users engaged, hence they usually come with the highest CPM scale.
Non-linear video ads
Opposite to linear ads, non-linear ads appear while the video content is playing, i.e they overlay over the main video content without obscuring or interrupting the playback. They are usually in the form of interactive banner ads. Therefore, these advertisements are assumed to be less intrusive than linear ones.
Generally, a non-linear video ad will run for 5-15 seconds before rotating to another ad or reducing in size. Non-linear video ads complement linear ads perfectly and serve as an additional source of revenue.
Companion ads
Companion ads are listed to have the narrowest sense of the in-stream ad format. They don’t show up within the video stream but alongside it, in the form of an image, text ad, and definitely, outside of the player itself.
Companion ads offer a persistent visual for a brand or product while the video is being watched. In conjunction with a linear or non-linear instream ad, these advertisements are so-called companion ads.
What are Video Out-stream Ads and How do they work?
We have just gone through the definition of four types of Video ads, one of which is standalone (no content) and listed as Video out-stream ads, also, the quick grasp of Video in-stream ads. Unlike in-stream advertisements, out-stream ads appear separately from the video content and can be found on non-video platforms or mainly text-based content such as articles.
In detail, out-stream ads autoplay as the user scrolls the content up or down. The sound attached to them is muted, and users can control it. One more characteristic of these advertisements is that the video as well as the sound will stop if users scroll past them, which enables this ad to be a non-intrusive form of video advertising.
Source: Google Blog
Due to its independence of video content, out-stream ads contain a couple of formats, which are:
- In-slide out-stream video ads
- In-content video ads
- In-banner video ads
In-slide out-stream video ads
In-slide out-stream video ads display in the corner of a webpage in a video player. They stay in that position even when the user scrolls over the content and automatically play muted. All of this makes them ideal for increasing ad viewability.
Users can turn off these advertisements at any time (or after a few seconds, depending on the player settings). Otherwise, the player can choose to turn it off automatically as the ad ends.
In-content video ads
Whereas in-slide advertisements “stick” to the screen, in-content out-stream ads do not follow users as they scroll. Instead, they appear within the content in a separate video player. As the user scrolls down to find the in-content ad, the player loads and begins playing the ad.
In-banner video ads
In-banner video ads are more likely banner ads in the form of short video ads. They often play without sound and may include captions or subtitles.
In-stream or Out-stream Video Ads — Which Type Is Better for Publishers?
In-stream video ads: Pros and Cons
When it comes to the most significant pro of In-stream video ads, impressive CPMs are on top all the time. Many publishers choose this ad type to increase their ad yield. Together with a high CPM scale, video in-stream ads help to boost ad viewability, appeal to users’ attention, and then stimulate their engagement.
Despite all the pros, in-stream video ads come with a few drawbacks. They are usually perceived as highly intrusive to users’ experience, especially linear ads. Furthermore, existing video content is a must to display in-stream ads, whereas not all publishers have a video library to set up themselves.
The cool thing is that PubFuture’s Video ad-serving system is working well with this. The only thing that publishers need to do is implement the ad code, and then we will do the rest.
Adhering to the new Google policies for Video inventory, Video ad may autoplay with sound at any time. For In-stream placements, audio ads must not be requested or served in muted placements to protect advertiser value. This new update is considered to make publishers hesitate to try in-stream ads.
Out-stream video ads: Pros and Cons
One of the enormously irrefutable advantages of out-stream ads is that they are much more user-friendly. They must be set to “mute” by default and may display in multiple ad formats. One more thing that makes out-stream video ad flexibility is that publishers do not need to have video content on their websites to use out-stream advertisements.
However, any pros are all attached with cons. Due to the muted sound setup, out-stream ads are much less noticeable. Though they are less intrusive, their performance is incomparable to in-stream ads.
As you’ve already seen, both in-stream and out-stream video ads offer advantages and disadvantages. That’s why acknowledging which one is superior is a tough thing. They are both appropriate for different sorts of publishers and monetization solutions.
In-stream and Out-stream Video ad Monetization with PubFuture
Above are compiled notable pros and cons between In-stream and Out-stream video ads. If publishers are searching for monetization solutions with Video ads, the PubFuture ecosystem deserves a try. We offer advanced tools, services, and features designed to help you achieve the full potential of monetization efforts. Our premium demands have been boosting campaigns to yield ad revenue to the next level.
