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Instream Ads vs Outstream Ads: A Comprehensive Comparison of Video Ads

Point of this article..

  • Instream Video Ads: Embedded within video content, appearing before, during, or after the main video.
  • Outstream Video Ads: Displayed outside traditional video players, often within text articles or social media feeds.
  • Choosing the Right Format: Depends on your content type, audience engagement, and monetization goals.

Picking the right video ads format can boost engagement and revenue. Learn the key differences between instream and outstream ads to make the best choice

Video advertising has become a cornerstone of digital marketing strategies, offering dynamic ways to engage audiences. Two primary formats have emerged: instream and outstream video ads. Each serves distinct purposes and offers unique benefits. This article delves into their definitions, advantages, limitations, and provides a detailed comparison to guide publishers and advertisers in making informed decisions.

Definition Instream Video Ads

Instream video ads are advertisements that play within video content, seamlessly integrating into the user’s viewing experience. They are categorized based on their placement:

  • Pre-Roll Ads: Appear before the main video content.
  • Mid-Roll Ads: Play during the video, interrupting the content at strategic points.
  • Post-Roll Ads: Run after the main video has concluded.

Additionally, instream video ads can be classified into different types based on their format and user interaction:

  • Linear Ads: These ads play in sequence with the video content, requiring users to watch them before continuing with the main content. Examples include pre-roll, mid-roll, and post-roll ads.
  • Non-Linear Ads: These ads appear alongside the video content, such as overlays or banners, allowing users to interact with them without stopping the main video.
  • Companion Ads: These are display or rich media ads that appear in conjunction with a video ad, typically positioned around the video player to reinforce the ad message.

These ads are akin to traditional TV commercials, delivering messages to viewers who are already engaged with the video content.

What Are the Advantages of Instream Ads?

Instream ads provide several advantages that make them an attractive option for advertisers looking to capture audience attention effectively. Here are some of the key benefits:

  • High Engagement: Instream ads are placed within video content, capturing the viewer’s attention and leading to higher engagement rates.
  • Captive Audience: Since these ads are embedded in videos, viewers are more likely to watch them without skipping, especially if they are non-skippable.
  • Visual Impact: Video ads offer dynamic visuals and sound, making them more memorable and effective in conveying a brand message.
  • Targeted Reach: Instream ads allow advertisers to target specific demographics, interests, and behaviors, ensuring the right audience sees the ad.

Limitations of Instream Ads

While instream ads offer many benefits, they also come with certain challenges that advertisers should be aware of. Below are some limitations:

  • Ad Fatigue: Repeated exposure to instream ads can cause viewer fatigue, leading to lower engagement over time.
  • Viewer Resistance: Some users find instream ads intrusive and may skip them whenever possible, reducing ad effectiveness.
  • Ad Blockers: Instream ads are susceptible to ad-blocking software, potentially reducing their reach.

Definition Outstream Video Ads

Outstream video ads, also known as “native video ads,” are video advertisements that appear outside of traditional video players. They are typically embedded within text-based content, such as articles or social media feeds, and play automatically when they come into the user’s view. Outstream ads do not require existing video content, making them versatile for various platforms.

Outstream video ads come in several formats, including:

  • In-Slide Ads: These appear as floating videos that slide into the screen from the corner, ensuring visibility without disrupting the reading experience.
  • In-Content Ads: Embedded within text-based content, these ads play as users scroll, making them more engaging within articles or blogs.
  • In-Banner Ads: Displayed within standard display ad placements, these video ads play within banners, providing advertisers with additional video ad inventory.

What Are the Advantages of Outstream Ads?

Outstream ads offer unique benefits that differentiate them from other video ad formats. Some of the notable advantages include:

  • Flexibility in Placement: Can be integrated into non-video content, providing more opportunities for publishers without video content to monetize their pages.
  • User-Friendly: Often less intrusive, as they play within the context of the content the user is already engaging with.
  • Expanded Reach: Allows advertisers to reach audiences beyond video-centric platforms, tapping into users consuming text-based content.

Limitations of Outstream Ads

Despite their advantages, outstream ads also present some challenges that advertisers need to consider:

  • Lower Engagement Rates: Since they rely on user interaction to enable sound or expand the video, engagement may be lower compared to instream ads.
  • Viewability Concerns: If not properly integrated, outstream ads might be overlooked by users, reducing their effectiveness.
  • Potential Disruption: Poorly placed outstream ads can disrupt the user experience, leading to negative perceptions.

How Do Instream Ads and Outstream Ads Differ from Other Ads?

Instream and outstream video ads differ from traditional display ads in several ways:

Ad TypePlacementInteractionKey Benefit
Instream AdsWithin video content (pre-roll, mid-roll, post-roll)Engages viewers watching video contentHigh engagement & premium ad placement
Outstream AdsWithin non-video content (articles, social feeds)Auto-plays when in view, relies on user interactionExpands reach beyond video platforms
Display AdsStatic images or banners on web pagesClick-based interactionSimple and cost-effective
Native AdsBlends with editorial contentSeamless user experienceNon-disruptive advertising
Social Media AdsPlatforms like Facebook, Instagram, TikTokInteractive and shareablePlatform-specific targeting

An In-Depth Comparison Between Instream vs. Outstream Video Ads

AspectInstream Video AdsOutstream Video Ads
PlacementEmbedded within video content (pre-roll, mid-roll, post-roll).Appears within non-video content, such as articles or social media feeds.
User ExperienceCan be intrusive if not timed properly, potentially disrupting the viewing experience.Generally less disruptive, as they blend with the surrounding content and do not interrupt the primary video being watched.
Engagement RatesTypically higher due to captive audience but may lead to viewer frustration if overused.May have lower engagement rates as they rely on user interaction and voluntary engagement.
Revenue PotentialOften commands higher CPMs due to premium placement within video content.Provides additional revenue streams, especially for publishers without video content, but may yield lower CPMs.

Can Publishers Implement Both Types of Ads?

  • Diversified Revenue Streams: Combining both ad types helps publishers maximize their earnings by leveraging different placements.
  • Enhanced User Experience: A strategic mix ensures a balance between monetization and user satisfaction.
  • Targeted Monetization: Publishers can optimize ad formats based on content type and audience preferences.
  • Platform Adaptability: Allows seamless ad integration across various digital platforms.
  • Audience Preferences: Different users engage with different ad formats, increasing overall effectiveness.
  • Effective Campaign: Helps advertisers create well-rounded ad strategies by using both instream and outstream ads where they perform best.

Conclusion

Both instream and outstream video ads come with their own advantages and challenges. Choosing the right format depends on the type of content, audience engagement level, and monetization goals.

However, maximizing revenue from video ads requires the right strategy. ProPS can help you optimize video ads, ensure top performance, and boost your digital advertising revenue. With advanced technology and a team of experts, we empower publishers and advertisers to achieve the best results from both instream and outstream video ads.

FAQ

  1. Which format is better for higher engagement, instream or outstream ads?
    Instream ads generally have higher engagement since they are embedded within video content, but outstream ads provide more flexibility.
  2. Are outstream ads less intrusive than instream ads?
    Yes, outstream ads blend into the surrounding content and do not disrupt the viewing experience as much as instream ads.
  3. Can advertisers use both formats in a single campaign?
    Absolutely! Using both formats helps create a well-rounded ad strategy that maximizes reach and engagement.
  4. Do outstream ads perform well on mobile devices?
    Yes, outstream ads are optimized for mobile and often perform well within scrolling content.
  5. How do I decide which ad format to use?
    Consider your campaign goals, audience, platform, and user experience to determine which format aligns best with your strategy.

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