As video advertising continues to grow in popularity, video ads have emerged as a powerful way to generate ad revenue.
But, as with most things in life, it’s not so simple.
There are two types of video ads – instream and outstream. And as a publisher, choosing the right type of video ads to integrate into your platform can significantly impact both user experience and revenue generation.
In this article, we’ll delve into the world of video ads and cover everything there is to know about instream and outstream video ads.
What are Instream Video Ads?
Instream video ads are video ads that are played directly within a video player. The most prominent example of instream video is YouTube, which plays ads before, during, or after the video you are watching.
The duration of instream ads vary, but they are usually 15-30 seconds long, with some even being as short as five seconds.
Types of Instream Video Ads
- Linear ads
- Non-linear ads
- Companion ads
Linear Ads
Linear ads play in place of the video content and can be either pre-roll, mid-roll, or post-roll.
They can be either skippable after several seconds or non-skippable, with the latter having a higher chance of being perceived as intrusive.
In other words, you have no choice but to watch linear ads.
This is why they generate the highest CPMs.
Non-Linear Ads
Non-linear ads are displayed as an overlay on top of the video content, allowing viewers to continue watching the video while the ad is being displayed.
These ads can be text, image, or video-based and often appear at the bottom or top of the video player.
Non-linear ads are less disruptive to the user experience, but they may also generate lower CPMs compared to linear ads.
Companion Ads
Companion ads are displayed alongside the video content, typically in the form of display banners or text ads.
The key difference between companion ads and non-linear ads is that companion ads are played outside the borders of the video player.
Advantages of Instream Video Ads
- High CPMS
- Available across multiple platforms
High CPMs
The primary advantage of instream ads are the high CPMs, which is due to their high viewability and engagement rates.
Available Across Multiple Platforms
Instream video ads can be used on multiple platforms, including websites, mobile apps, and CTV and OTT apps.
Disadvantages of Instream Video Ads
If you’ve ever watched a YouTube video, you already know that user experience is the biggest disadvantage of instream ads.
Although users are used to ads and understand that watching them is the tradeoff for access to free content, they can still bother some people.
Another disadvantage is that you need to have video content in order to run the ads. Without video content, you will have no way of running instream video ads.
What are Outstream Video Ads?
Outstream video ads, also known as in-read or native video ads, are ads that are not connected to existing video content.
Instead, the ads play independently via a third-party video player. Moreover, because the ads are not tied to existing content, they can be played in various locations on the website, such as within editorial content or on one of the website’s corners.
Types of Outstream Video Ads
- In-content
- Sidebar
- In-banner
In-content
As the name suggests, in-content video ads appear in the editorial content of a website.
Unlike pre-roll or mid-roll ads, in-content outstream video ads are not placed within a video player but rather are integrated within the text of a web page. This makes them less disruptive to the user’s experience as they can easily be skipped or ignored.
In-content video ads are typically triggered when the user scrolls down a certain portion of the web page.
Once triggered, the ad will start playing, providing a seamless viewing experience for the user. In-content outstream video ads are a popular choice for publishers as they provide high viewability rates and a non-intrusive way to reach their target audience.
Sidebar
Sidebar outstream video ads are a type of video ad format that appears on the side of a web page.
Unlike in-content ads, sidebar outstream video ads are not integrated within the editorial content of a web page but rather placed on the side of the page – usually one of the bottom corners.
They typically play in a small player and are often muted by default, allowing the user to choose whether or not to engage with the ad.
In-banner
In-banner video ads are video ads that appear in standard display banner ads. These ads are essentially a combination of a banner ad and a video ad, and are typically displayed in the sidebar or at the top or bottom of a web page.
Advantages of Outstream Video Ads
- No need for original video content
- Less Intrusive than instream ads
No Need for Original Video Content
A major benefit of outstream ads is that publishers can implement them without having to host their own video content.
By leveraging third-party companies, outstream ads can be played natively, allowing publishers to take advantage of the high CPMs associated with video ads, even without original video content.
Less Intrusive Than Instream Ads
Outstream ads are generally less intrusive than instream ads since they do not interrupt the video content that users want to watch.
Disadvantages of Outstream Video Ads
- Increased latency
- Lower viewability
- Not compatible with CTV/OTT
Increased Latency
Because the video content is coming through an external source, the ads can increase the latency of your page and lead to slower page loads.
Lower Viewability
Unlike instream ads, which the users need to view, outstream ads can still be missed. This is especially because they need to be initially muted, as per the regulations of Google and other ad companies.
Not Compatible with CTV/OTT
Outstream video ads don’t work with CTV and OTT apps, which require original content and can only run instream ads.
Choosing Between Instream and Outstream Video Ads
As a publisher, determining which type of video ad to integrate into your platform will depend on several factors, including your content strategy, audience preferences, and revenue goals.
Here are a few considerations to help guide your decision:
Content Type
If your site has a lot of original video content, instream ads will be a more natural fit.
Conversely, sites without existing video content would need to use outstream ads. Most outstream video ad companies can provide you with generic video contact in order to play the ads.
User Experience
Consider your audience’s preferences and the overall user experience when selecting the right ad format. Instream ads can be more engaging, but outstream ads may provide a less intrusive experience.
Our Recommendation
Both instream and outstream ads have their unique advantages and can be effective in reaching different types of audiences.
That’s why we recommend using a combination of instream and outstream ads to maximize revenue. That being said, there is no one-size-fits-all strategy. Every site is unique, and therefore every ad strategy needs to be unique as well.
We also recommend making both instream and outstream ads into a sticky video player once the user scrolls past the original placement.
If the video ads don’t become sticky, i.e. stick to the bottom/top of the page, chances are that the user will scroll past them before they even load and you will lose out on vital revenue.
Above all, it’s important that you implement the ads in an intelligent manner that enables you to maximize your revenue without violating any guidelines or ruining your UX.
Start Serving Instream and Outstream Ads with Adnimation
Adnimation, a Google Certified Publishing Partner (GCPP), offers a full suite of video solutions, including instream and outstream ads.
We combine the industry’s leading technology and demand sources to tailor the ads for your site, ensuring that you are generating the highest possible revenue while maintain good UX.
Feel free to get in touch with us today to see how video ads can help take your revenue to the next level.
