In-Stream vs. Out-Stream Video Ads: Which Is Best For You

There is no doubt that video is the ‘King of Content’ in the world today, and there is no denying that it offers a higher engagement rate than any other content type. According to Wistia, videos shorter than 1 minute have an engagement rate of approximately 50%, and interestingly, engagement rates across various video lengths have remained steady year after year.

This makes it the go to choice for advertisers – to play effective, quirky, and short ads to capture and nurture potential leads, and a lucrative source of ad revenue for publishers

Over the last decade, in-stream and out-stream ads have been the top choice to serve ads. However, the Interactive Advertising Bureau (IAB) has recently re-categorized video ads as:

1. In-stream Ads
2. Accompanying Content
3. No Content / Standalone Ads (Also known as Out-stream ads)
4. Interstitial Ads

Before getting deeper into the in-stream and out-stream ads, let’s understand these new categories of ad types. Leveraging these ad types will help you to prioritize high-quality experiences for your visitors, help you secure higher budgets from advertisers, and more engagement from readers.

IAB’s New Video Ad Classification

Video ads have evolved over the last decade – for good. Recently, IAB re-classified video ads – In-stream Ads, Accompanying Content, No Content / Standalone Ads (Out-stream Ads), and Interstitial Ads, to offer publishers a more refined toolkit to enhance user experience by capturing the audience’s attention and turn eyeballs into views and clicks.

Let’s explore how each of these ad types can help optimize your content and drive engagement:

In-stream Ads

These video ads play within an on-going video content stream. They can be pre-roll (before the video starts), mid-roll (during the video), or post-roll (after the video ends). In-stream ads are closely tied to the video content, and they typically require the viewer to watch at least part of the ad before proceeding with the content.

For example, ads that play before a YouTube video (pre-roll), during a video on a streaming platform (mid-roll), or after a video on a news website (post-roll).

You also need to know: Now, the In-stream videos must be set as ‘Sound On’ by default at player start, or you need to have explicit clear user intent to watch the video content.

Accompanying Content

Accompanying ads are served alongside video content without interrupting the video itself. They might appear as display ads or banners around the video player or as overlay ads that appear on top of the video content without pausing it. The primary purpose of these ads is to complement the video experience without being intrusive.

Also, with accompanying ads, advertisers can ensure they are reaching their audiences with topics that are of interest to them. 

No Content / Standalone Ads (Out-stream Ads)

Standalone ads, also known as out-stream ads, appear in places where there is no video content to accompany them, such as within an article between paragraphs of text. These are served independently of the video content and autoplay as the user scrolls through the page. The main focus point of these ads is to engage the audience where video content is not the primary focus.

For example, a video ad that plays automatically as you scroll through an article on a news website or a social media feed.

Interstitial Ads

Just like an interstitial banner ad, an interstitial video ad covers the full screen of the user’s device and requires the use to tap a close button to proceed. These types of ads appear at between different sections of content or between levels in a game.

While all the above discussed ad types have their relevance and importance, in-stream ads and out-stream ads hold a huge share of video ads served in the ad tech ecosystem. So, let’s learn more about these ads in detail:

What are In-Stream Video Ads?

Let’s demystify “in-stream video ads,” a term that’s become an integral player in digital advertising. But what are they exactly, and why should you, as a publisher, care?

In-stream video ads are commercials that play within a video player, similar to traditional TV ads. They can occur before (pre-roll), during (mid-roll), or after (post-roll) the main video content.

• Pre-roll ads play before the video that the viewer has selected, creating an unskippable advertising experience.
• Mid-roll ads act like commercial breaks on TV, cropping up at specific intervals during the video.
• Post-roll ads roll out after the video content concludes. While their completion rate may be lower, the audience staying tuned is highly engaged.

Types of In-stream Ads

For publishers, in-stream ads present a valuable opportunity to capture viewer attention and engagement, potentially leading to higher CPMs. To harness them effectively, it’s important to delve into their different types and inherent advantages:

Linear Video Ads: These ads take up the entire video player space and interrupt the main content while they play.

• Pros: Hard to ignore, these ads provide a high level of viewer engagement.
• Cons: Their interruptive nature might prove irritating to some viewers.

Non-Linear Ads: These video ads share the screen with the main video content, often appearing at the bottom of the player.

• Pros: Non-linear ads are less intrusive as they let viewers continue enjoying their videos.
• Cons: These might be less noticeable and engaging due to their subtlety.

Companion Ads: Companion ads appear alongside the main video content, either within the player or surrounding it.

• Pros: These ads provide an additional touchpoint for ad interaction and can extend the reach of the primary in-stream ad.
• Cons: If viewers are fully immersed in the video content, they might overlook these ads.

Despite their potential benefits, in-stream video ads also pose certain challenges. They require an ad-compatible video player and depend on the availability of video content. Moreover, their interruptive nature can sometimes hamper the user experience.

What are Out-stream Video Ads?

Out-stream video ads, often dubbed as the “new kid on the block,” have carved out a niche in the digital advertising ecosystem. Let’s take a deep dive to understand what they are, their significance for publishers, and the diverse types they come in.

Out-stream video ads are standalone advertising units that play outside a video player, integrated within the text content, or as standalone placements on a webpage.

They can be quite versatile, adapting to fit different locations and formats on a webpage, thus offering publishers increased flexibility and creativity in their ad placement.

Here are the various types of out-stream video ads:

1. In-Slide Outstream Video Ads

These ads commonly appear in a corner of the webpage in a video player. They are “sticky,” meaning they stay in place and follow the user as they scroll down the webpage. These ads start playing automatically, usually with the sound muted, enhancing ad viewability.

Pros: Their sticky nature boosts ad viewability, providing a non-intrusive experience as they start playing without sound.

Cons: Users might choose to turn these ads off at their will or quickly scroll past, decreasing engagement.

2. In-Content Outstream Video Ads

Unlike in-slide ads, in-content out-stream video ads nestle within the heart of the webpage content in a distinct video player. These ads don’t trail the user while scrolling but appear when users scroll to their position, providing a seamless viewing experience.

Pros: These ads can significantly complement text-heavy content, introducing video ads without interrupting the reading flow.

Cons: Their play/pause behavior, depending on visibility, might be less engaging for users who scroll quickly through the content.

3. In-Banner Video Ads: Banners With a Twist

In-banner video ads utilize the space of traditional banner ads, but instead of static images or text, they feature a video.

Pros: They catch user attention more effectively than standard banner ads and can be placed in numerous locations on a website.

Cons: If not optimized properly, these ads can slow page load times and impact website performance.

For publishers, out-stream video ads offer several benefits. They don’t require existing video content or an ad-compatible video player, making them a flexible and efficient choice for any website. Furthermore, they are less intrusive than in-stream video ads, enhancing the user experience on the website.

Now that we have a grasp on out-stream video ads, it’s time to position them against other ad formats. Are you ready to see how they fare?

In-Stream and Out-Stream Ads vs. Other Ad Formats

To truly appreciate the potential of in-stream and out-stream video ads, it’s beneficial to compare these formats with other popular ad types, namely display ads, native ads, and interstitial ads. Here’s a snapshot of how they stack up:

When assessing your options, remember: that different ad formats excel in different circumstances. The context and content of your website, your audience’s preferences and behavior, and your ultimate monetization goals all factor into the best choice for you.

For example, while display ads are the classic choice for many, they might not drive the same level of user engagement as video ads. Similarly, while native ads can seamlessly blend into your website’s content, they might not be as dynamic or immersive as video ads, limiting their impact on users.

Now, while the metrics in the table give you a comparative understanding, the choice isn’t always black and white. This is where the detailed comparison between in-stream and out-stream ads in the upcoming section will equip you with finer details, aiding your decision-making process.

Are you excited about delving deeper? Let’s get to it!

In-Stream vs. Out-Stream: A Detailed Comparison

To help you make an informed decision, let’s dive into a side-by-side comparison of in-stream and out-stream video ads on three critical parameters: user experience and engagement, placement and integration, and monetization potential.

User Experience and Engagement

• In-Stream Ads: As these ads are embedded within the video content, they tend to capture user attention effectively. However, this can sometimes be a double-edged sword. If these ads are too long or irrelevant, they can disrupt the viewer’s experience and potentially lead to negative sentiment.
• Out-Stream Ads: On the other hand, Out-stream ads are less intrusive since they start playing when in view and pause when out of view. They blend seamlessly within non-video content, creating a less disruptive user experience. However, they might be less engaging than in-stream ads as users can easily scroll past them.

Placement and Integration

• In-Stream Ads: These ads are placed before (pre-roll), during (mid-roll), or after (post-roll) a video, so they are more suitable for websites that primarily host video content. They require an ad-compatible video player to work effectively.
• Out-Stream Ads: Out-stream ads are more flexible in terms of placement. They can be embedded anywhere on the website—within text content, as standalone ads, or even as in-banner ads. This makes them a more versatile choice for publishers without much video content.

Monetization Potential

• In-Stream Ads: Due to their high visibility and engagement potential, they typically yield higher CPMs (Cost Per Mille). However, their efficacy depends heavily on the quality and relevance of the video content they are associated with.‍
• Out-Stream Ads: While out-stream ads may not command as high a CPM as in-stream ads, they have a wider scope of application and can generate substantial revenue over a larger number of page views. Furthermore, they open up opportunities for publishers who might not have video content but want to capitalize on the video ad trend

Autoplay Video

• In-stream Ads: In-stream ads typically autoplay within video content, starting either before, during, or after the main video. These ads automatically begin and play for a few seconds before the viewer is given the option to skip, usually after five seconds. The aim is to capture the viewer's attention within this brief window, encouraging them to watch the complete ad. Because these ads are embedded directly into video content, they leverage the user’s intent to watch the video, ensuring higher engagement rates.
• Out-stream Ads: Out-stream ads also utilize autoplay, but they function differently. These ads are embedded within non-video content, such as articles or social media feeds. They automatically play when a user scrolls into view and pause when the user scrolls away. Out-stream ads are designed to capture attention within a different context – where users might not expect video content. The goal is to seamlessly integrate video advertising into a user’s browsing experience, maximizing visibility without requiring dedicated video content.

Mobile vs. Desktop

• In-stream Ads: In-stream ads are versatile, and whether embedded within a video on a desktop or a mobile app, these ads can engage users regardless of the screen size. The ad’s seamless experience ensures that it feels like a natural part of the content. However, on mobile, the smaller screen and potential for distraction may require more precise targeting to ensure effectiveness.‍
• Out-stream Ads: Out-stream ads are majorly used on mobile devices, where they are integrated into the user experience within apps or mobile-optimized websites. While they can also be used on desktop, their design and functionality are particularly suited for mobiles, where they can reach users in moments when they are most engaged.

Quick Snapshot: In-stream Ads vs Out-stream Ads

Hopefully, this comparison has brought you closer to understanding which ad format suits your needs better. But how do you choose between the two? Let’s delve into that next.

Choosing Between In-Stream and Out-Stream Video Ads

When choosing between in-stream and out-stream video ads, there isn’t a one-size-fits-all answer. The best option for you depends on several factors, including the type of content you offer, your audience’s preferences, and your monetization goals.

Here’s a simple guide to help you decide:

1. Consider Your Content: If your website primarily hosts video content, in-stream ads can be an excellent monetization method. They are designed to be part of the video-viewing experience and can generate substantial revenue. On the other hand, if your site mainly consists of text or image content, out-stream ads offer an opportunity to incorporate video advertising without creating video content.
2. Understand Your Audience: It’s crucial to know your audience’s behavior and preferences. Do they engage more with video content? Are they open to ads interrupting their video viewing, or do they prefer ads that are less disruptive to their browsing experience? In-stream ads can be great for an audience that loves video content, but out-stream ads might be better for an audience that values an uninterrupted browsing experience.
3. Set Clear Monetization Goals: If your primary goal is to generate maximum revenue from high CPMs, in-stream ads might be your go-to choice. However, if your goal is to monetize more of your website’s content while maintaining a smooth user experience, out-stream ads could be the way to go.
4. User Experience Matters: When choosing between the two ads, your user’s experience should be a top priority. In-stream ads are embedded within video content, demanding attention and often leading to higher engagement rates. However, it can come at the cost of disrupting the viewer's experience if the ad feels intrusive or irrelevant. However, out-stream ads are designed to be less disruptive, playing only when in view and pausing when out of view leading to a smoother user experience, particularly in non-video environments.
5. Engagement vs. Interaction: In-stream ads typically capture immediate attention due to their placement within the video content itself. They are hard to ignore, which can be great for driving direct engagement. However, this forced engagement can sometimes feel intrusive. Whereas out-stream ads rely more on voluntary interaction. They play as users scroll through content and can be easily bypassed, which might result in lower engagement but offers a less forceful approach.
6. Platform Strategy: Your platform strategy is crucial in choosing the right ad type. In-stream ads are ideal if your content is video-heavy and you have a dedicated video platform where users expect to encounter video ads – it ensures only a highly engaged audience watches the ad. In contrast, out-stream ads offer more flexibility, making them perfect for reaching audiences across text-heavy websites, mobile apps, and social media platforms.

Choosing the right ad format is a significant decision, but it’s not a binding one. You can always re-evaluate your choice and adjust your strategy as you gain more insights into your audience’s behavior and your website’s performance.

The next question that arises is how to implement these ads effectively. Are you ready to explore some best practices? Let’s forge ahead!

Can Publishers Implement Both In-Stream and Out-Stream Ads?

The question isn’t just whether to choose between In-stream and Out-stream ads but whether you can implement both at the same time for a diversified monetization strategy.

The answer is – YES.

Opting for both, In-stream and Out-stream ads can offer publishers a comprehensive approach that leverages the strengths of each format, ensuring that content and audience preferences are catered to in the most effective way. So, here’s why mixing both can be a great idea:

Diversified revenue streams

Using both types of ads lets you tap into different ways of making money. In-stream ads work wonders on video content, bringing in revenue from viewers who are already engaged with videos. Out-stream ads, on the other hand, fit perfectly around articles and social media feeds, helping you earn from places where videos aren't the main focus. This way, you’re not missing out on any potential earnings.

Better user experience

A mix of In-stream and Out-stream ads helps you cater to different user preferences. Some people are fine with watching ads as part of their video content, while others prefer ads that don’t interrupt their reading or browsing. Out-stream ads are less disruptive because they only play when they’re visible and pause when they’re not. This approach keeps everyone happy and improves user satisfaction, whether they’re watching a video or scrolling through an article.

Targeted monetization

Different parts of your site or app might be better suited to different ad types. For example, if you have a lot of video content, In-stream ads are a natural fit. For text-heavy sections or mobile apps, Out-stream ads can be seamlessly integrated without taking away from the user experience. By placing the right type of ad in the right spot, you can make the most out of every corner of your site.

Platform adaptability

Not all platforms are the same, and using both ad types lets you adapt your strategy to fit each one. In-stream ads are great for video-centric platforms where users expect to see ads as part of their viewing experience. Out-stream ads, however, work well on social media, in articles, and on mobile devices. This flexibility means you can reach your audience wherever they are in the most effective way.

Meet audience preferences

People have different tastes. Some viewers enjoy watching ads that come with their videos, while others prefer ads that blend into their reading or browsing experience. By offering both In-stream and Out-stream ads, you cater to a wider range of preferences, making sure that everyone finds something they’re comfortable with.

Tailored campaigns

Different campaigns might need different ad formats to be most effective. For instance, a campaign looking for immediate attention might benefit more from In-stream ads, while one aiming for broader reach might find Out-stream ads more suitable. By having both options available, you can choose the best format for each campaign, making sure your ads hit the mark.

By combining In-stream and Out-stream ads, you’re not only diversifying your revenue streams but also enhancing the overall user experience and adapting to various platforms and preferences. It’s a smart way to make the most of your ad strategy and keep both your audience and your wallet happy.

Best Practices for Publishers in Implementing Both Ad Types

As a publisher, your approach toward implementing video ads on your platform plays a significant role in your monetization success. Whether you’re integrating in-stream or out-stream ads, certain practices can help enhance their impact and augment your ad revenue. In this section, we’re focusing on elements that are within your control.

1. Decide on Ad Placement: For in-stream ads, the placement within the video (pre-roll, mid-roll, or post-roll) matters significantly. Similarly, the positioning of out-stream ads within the web page content can affect their visibility and user engagement.
2. Monitor and Adjust Ad Length: While you may not control the exact length of the ads, understanding what ad length works best with your audience can inform your decisions when choosing which ads to run. Typically, shorter ads tend to perform better, but this could vary based on your specific audience.
3. Preserve Quality Content: While the quality of the ad video is often in the advertiser’s hands, ensuring that the ads align with the quality of your own content can lead to better audience engagement and potentially higher CPMs.
4. Analyze and Optimize Ad Performance: Regularly monitor your ads’ performance, noting metrics like viewability, completion rate, and overall revenue. Leveraging these insights enables you to adjust your ad strategy for optimal results continually.
5. Maintain Regulatory Compliance: It’s your responsibility to ensure that the ads on your platform are compliant with regulations such as GDPR and CCPA. Non-compliance could lead to penalties and could harm your platform’s reputation.

Keeping these best practices in mind while implementing your in-stream or out-stream video ads can navigate you toward a successful ad monetization strategy.

Impact of the March 2023 Update to Open RTB on Video Ads

In March 2023, the digital advertising landscape was shaken up by an important update to the Open RTB protocol. Open RTB is the framework that facilitates the automated buying and selling of digital ad inventory.

The main focus of this update? A major overhaul to how in-stream and out-stream video ads are classified, offering enhanced clarity and specificity for publishers.

This major development can’t be ignored. Here’s why it matters to you as a publisher:

1. Streamlined Ad Classification: The update to OpenRTB introduces clear definitions for in-stream and out-stream video ads. This means less room for error or ambiguity when classifying your ad inventory. Clear classification helps ensure you reach the right buyers and maximize your revenue potential.
2. Optimized Inventory Valuation: With this update, your video ad spaces are more accurately defined, which helps potential buyers understand the value of your inventory better. This can directly lead to fairer and potentially higher pricing for your ad spaces.
3. New Placement Types: The IAB introduced four new categories for video ads:

• In-stream: Plays before, during, or after the main video.
• Accompanying Content: Plays alongside the main video but isn't the main focus.
• No Content: Plays independently of any video content.
• Interstitial: Takes up the whole screen, often seen between content.

We have discussed these new categories at the beginning of the blog.

4. New "plcmt" Field: To help publishers and advertisers classify video ads accurately, a new field called "plcmt" was added. This field tells you which of the four placement types an ad belongs to.
5. Improved Ad Strategy: The changes introduced by the OpenRTB update allow publishers to reassess and tweak their video ad strategies. As a publisher, you’ll want to ensure that you accurately categorize your ad inventory under the new system to appeal to the most relevant buyers.

At first glance, these updates may seem like just another task on a publisher’s to-do list. However, they’re much more than that. They offer an opportunity for improved ad strategy, more accurate inventory valuation, and, ultimately, better returns on your ad spaces.

For a deep dive, check out a detailed IAB Tech Lab insightful resource into the March 2023 update to OpenRTB.

Elevating In-Stream and Out-Stream Video Monetization

Striking the perfect balance between profitability and an unobtrusive ad experience is vital in in-stream and out-stream video advertising. However, choosing the right ad formats, tailoring them to various audiences, and leveraging their potential for maximum returns can be challenging. This is where an expert solution provider like Mile comes in.

In-Stream Video Ads: Mile offers an integrated In-Stream video ads management solution that elevates your content. They combine click-to-play and accompanying ad options with a high-performing video player to amplify user engagement and ad performance, thus driving revenue growth.

Outstream Video Ads: With Mile, outstream video ads have the unique ability to seamlessly integrate into your content, enhancing user experience and interaction. Their platform employs dynamic Anchor auto-play ads that adapt to user behavior and preferences, optimizing the ad viewing experience and boosting your earnings.

Vertical Video Solutions: Mile understands the growing significance of mobile audiences. They offer vertical video solutions where their unique vertical video player provides an immersive and enjoyable experience for mobile users. This ensures that your content resonates with them and maximizes your mobile ad revenue.

Dynamic Bidding: The potential of your video inventory needs to be effectively leveraged. With Mile’s dynamic bidding options, including Prebid Video bidding and GAM Demand, they ensure your video inventory attracts the attention and the revenue it deserves in an ever-competitive digital landscape.

Ready to take your video monetization to the next level? Start by booking a demo today.

FAQs

1. What is the difference between in-stream and out-stream video?

In-stream ads play within a video player and video content, while out-stream ads play within the web page text.

2. What are out-stream video ads?

Out-stream ads are video ads that play within webpage text, not needing a video player or content.

3. What is an in-stream video ad?

In-stream ads are commercials that play inside a video player before, during, or after main video content.

4. What are the benefits of in-stream video ads?

In-stream ads engage viewers during video consumption and provide an immersive experience, higher CPMs, and flexible timing options.