In this post, you will learn the differences between instream, outstream and in-banner video advertising and some of the benefits to each of them.
Video has been top of mind for everyone around here lately ever since I wrote about the impact of rich media banner ads, and with good reason. Video is everywhere you look. There always seems to be one as a top result in most Google searches. There are videos at the top of most published pages anywhere on the web, be it entertainment, sports or news. (Though quit it with the autoplay with sound, please!) And as I was researching just how I should put this post together, I ran across some downright staggering statistics when it comes to video. Are you sitting down?
Some Staggering Statistics When it Comes to Video
- By 2019 video will represent over 80% of all Internet traffic, says a new study from Cisco. And for the US it will be over 85%.
- According to a report published by Forrester, including video in an email leads to a whopping 200-300% increase in click-through rate.
- Unbounce reports that including video on a landing page can increase conversion by 80%.
- YouTube reports mobile video consumption rises 100% every year with 72 hours of video being uploaded to YouTube every minute.
- 90% of users say that seeing a video about a product is helpful in the decision-making process.
- By 2019, online videos are expected to generate $15.4 billion in spend.
- 87% of online marketers are currently using video content in their digital marketing strategies.
- 59% of company decision makers would rather watch a video than read an article or blog post.
If some of those numbers come as a surprise, you must not have been paying attention.
3 Types of Video Advertising
Now of course “video” is a very general term. There are many types and categories of video. From brand videos, product review videos, webinars and testimonial videos, to Vlogs, gaming videos, interviews and even unboxing videos. (It’s a thing!) Now I would love to talk to you about my favorite cooking video channels on YouTube (It’s Tiny Kitchen!), but instead I want to talk about the 3 types of online video advertising you should be thinking about:
Instream Video Advertising
You know the videos ads that play before, during or after a video you want to watch on Youtube? Those are called “Instream” videos. At first, they were very frustrating (I want to watch this movie review now, not 5 seconds from now!), but since they are pretty commonplace nowadays, I think we’ve all adjusted to them being there. Even though these videos sort of interrupt the viewer’s initial experience, this type of placement for video advertisements are great for a few reasons. For one, you get to piggy-back off of someone else’s successful video or channel. Plus you have high-visibility with a pair of “forced-eyes” who are just waiting to watch what they originally came to watch.
With that, there is a 97.7% start rate in North America (92.5% globally) and a 80% play rate of fully watched videos in North America (72.9% globally). Resulting in .42% clickthrough rates (1.5% globally). Some of that is affected by the type of playback you allow. If you’re feeling aggressive, you can lock the viewer in to watch the full video, or as is common, allow for the viewer to skip the ad after 5 seconds. Placement can be a bit tricky if you go too broad, but if you target your customers based on a few specific keywords and phrases, you’ll have more of the “right eyes” you want on your video.
Outstream Video Advertising
The new kid on the block. You may have watched some of these and not known it. They can be a bit sneaky that way. An “outstream” video ad, sometimes called “in-read” or “native video,” is a video ad that plays on-page and full-width after a user has read or scrolled to a certain point down the page. Even if the publisher of that page doesn’t have video content of their own, your video plays within the content they’ve published. As it typically blends on-page with content you are already actively reading, you don’t immediately realize that the video that loads between 2 paragraphs isn’t associated with the content you are engaged with.
Take a look:
This “pre-engaged” audience is already invested in the content that they’re reading that they don’t even realize they are being advertised to. Like I said, pretty sneaky. Seeing how new this format is, there aren’t a lot of statistics I could find. But considering people typically view outstream video ads 25% longer than instream, I would expect the hype train to get stronger and roll faster. After all 70% of advertisers and 77% of agencies consider outstream video ads to be essential.
Hello, old friend. Don’t think you’ve been left behind. It was just last month I praised the benefits of rich media over standard display advertising and leading that marketing push is “in-banner” video advertising. In-banner video ads are basically rich media banner ads that utilize video as the main focus of their ad. If instream ads are interrupters, and outstream ads are sneaky, then in-banner video ads are those inflatable, waving arm tube guys you see outside used-car lots. They attract your attention, yet sit and wait quietly for you to interact with them. With in-banner video ads, the viewer is in the drivers seat. The viewer chooses to start, stop or initiate interaction.
Because they typically sit in the sidebar or header of a page you view, they don’t interrupt the user’s online experience. It’s sort of like that old saying of “never speaking unless spoken to.” Meaning, these forms of video advertising aren’t rude because they don’t interrupt what you are trying to accomplish. They wait until you click on them. These ads typically have a low click-through-rate—.39%. But, 25.1% of users in North America (30.8% globally) start these video ads, and of those that do 66.1% (63% globally) play the full thing. These start rates and fully played rates are significantly lower than instream videos, but as these ads are user initiated, as opposed to auto-playing, that is to be expected. They are, however, greater than the .21% CTR in North America (.27% globally) when compared to rich media banners without video.
Video is the Future of Digital Advertising and Content Marketing
There’s no way around it. If you don’t embrace video in your marketing and advertising initiatives, you are missing out on establishing yourself as a leader or expert in your service or industry. By 2019, online videos are expected to generate $15.4 billion in spend. So the reality is you should have started yesterday. The writing is on the wall, more people want to be “watching” when consuming content, not “reading.” In a 2018 HubSpot survey, 54% of consumers wanted to see more video content from a brand or business they support. Let that sink in. After all, according to a Forrester Research report by Dr. James McQuivey titled “How Video Will Take Over The World”:
“If a picture is with 1,000 words, then a minute of video is worth 1.8 million words!!!”