The Difference Between In-Stream and In-Banner Video Ads

Table of Contents:

The State Of Video Ads
In-Banner Video Ads
Summing Up

The State of Video Ads

Video is a powerful ad format, helping marketers influence their audiences and reach business goals. The recent statistics illustrate video ads’ power: when put into practice correctly, video ads can effectively drive both completion rate (by up to 85%) and sales. For instance, a study by VidMob reveals insights into how video ads displaying the emotion of surprise in the first three seconds lead to a whopping 360% performance uptick.

Naturally, video, and in-stream video ads in particular, remain one of the key ad formats for brands to invest in. According to Statista, by the end of 2020, the global video ad spend will amount to $26,902 million and grow 6.8% annually, reaching $35,048 million in the US by 2024.
As for the average ad budgets split across different channels, IAB’s Digital Video Advertising Spend Report reveals which adjustments the pandemic has brought to video advertising. Thus, based on estimates, desktop and mobile video ads will lose their ground to connected TV advertising that will hold its position even after a hardcore lockdown.

To get the most out of video ads, it’s vital to focus on ad creative types that will take you to your business objectives. In order to help you steer your ad strategy in the right direction, let’s explore two formats that are on everybody’s A-list: in-stream video ads and in-banner video ads.

In-Stream Video Ads

All in-stream video advertising appears in the video player, where the main video content is streamed, hence the name in-stream. It comprises 3 types: pre-roll, mid-roll, and post-roll ads, seen before, during, or after the content. These ads remind users of traditional TV commercials and are perceived as non-intrusive and even welcomed when served in the relevant context.

In-stream video ads are a great way of earning visibility; therefore, this ad format is commonly used to unlock monetization potential for publishers, especially across CTV. 

Depending on the particular placement, in-stream video ads can serve numerous purposes. For instance, pre-roll ads work great to increase brand recognition, while post-roll ads when done well and enhanced with a concise call-to-action can become a powerful conversion tool.

Now, what are the pros and cons of in-stream video ads?

Pros:

• In-stream ads neither look nor feel intrusive for viewers, as they are visiting the page to watch a video, hence, are most likely ready for video ads as well
• In most cases, in-stream ads – pre-roll in particular – are unskippable, so viewers have to watch them before the main content begins
• The abandonment rate is reduced because a viewer is already interested in consuming the the content he/she came for 
• Typically, ads incite viewers to interact, often resulting in an immediate response.

Cons:

• There may be no motivation for viewers to stick around and watch the ad, though, if it doesn’t entice them from the get go
• Viewers might click away before the ad completes playing
• If the main video content is rather short, viewers may still leave because the ad is intrusive or distracting
• If advertising brings low-to-no relevance to viewers, they can skip the ads.

As a savvy marketer, you need to know the distinction between the different kinds of in-stream video ads and know how to tap into their potential. Consider how ad placements can play an important role in driving engagement. Ads that are more relevant, more personal, more captivating, and better timed are more effective. Keep in mind that you have the first five seconds to seize attention and convince your audience to watch ads instead of skipping them.

In-Banner Video Ads

This is another ad format we’ll explore in this blog post, and it belongs to out-stream video advertising. Just as a swift recap, out-stream video ads usually appear between two paragraphs as a reader scrolls down the page. This video ad blends with on-page content, so the readers often don’t even realize they are being advertised to. 

Back to in-banner ads, they are placed within a web banner’s space. You often could see them as a part of a banner running without sound. While in-stream and out-stream video ads require a video player to be displayed, in-banner video advertising doesn’t need one.

How about the pros and cons of this format?

Pros: 

• It brings a purely native look and feel
• All interactions with ads are initiated by the viewer. Hence, this ad format doesn’t interpose the content showcased on a web page

Cons: 

• Because there is no way to stop the video ad once it starts playing, it can be distracting and bothersome, and even result in website abandonment and the use of ad blocking software
• Compared to in-stream video ads, in-banner ads are more intrusive as viewers often don’t expect to see video ads along with text content
• The other side of the spectrum, however, can be banner blindness, causing viewers to overlook page elements that they comprehend to be ads

Summing Up

Video advertising is a powerful tool to place your brand in front of potential customers and get the most out of their attention. Whether you choose any of these formats, in-stream or in-banner, you have a greater opportunity to convert impressions into clicks and conversions.

Along with the type of video ad you use, it’s essential to consider your ad message’s content and context to grab viewers’ attention from the get-go. If the ad has no relevance to your viewer’s interests, it will be skipped or ignored. And you can’t afford that in today’s competitive business climate.