How do in stream and in banner video ads stack up against each other, what are the differences, and how can you better serve your target consumer with engaging video advertising?
In stream vs. in banner video advertising: Which is better?
There’s a pretty obvious answer, but first, let’s look at some current statistics around video advertising and a breakdown of what, exactly, in stream and in banner video ads are.
To start, some video advertising stats:
- In 2017, in stream video ads had an average cost-per-mille (CPM) of $25.22, with the in banner average at $14.72.
- Fifty-two percent of video ads are viewed on mobile.
- Total video ad revenue doubled in just two years, from $5.9 billion in 2015 to $11.9 billion in 2017.
- Videos posted on Facebook warrant, on average, a 135 percent increase in organic reach over posts with just photos.
In banner video
In banner advertisements are video-embedded banner ads that appear on websites, just like a banner ad image would. These types of real-time bidding (RTB) video ads usually follow IAB standard sizing.
In the earlier days of RTB video, in banner video ads were the standard placement type for video creatives. However, embedding a video into a banner ad is risky for a couple of key reasons:
- Since they’re usually set to autoplay, they’re more disruptive to the user experience.
- DSPs are starting to block the embedding of a video into a banner ad, since it’s technically a more cost-effective loophole than in-stream ads.
In stream video
In stream is a type of video ad that lives within a video someone is already watching. There are three types of in stream ads, which are based on when a viewer sees the ad: Pre-roll, mid-roll, and post-roll.
- Pre-roll ads are shown before the main video content.
- Mid-roll ads appear somewhere between the beginning and end of a video, like a commercial.
- Post-roll ads are shown once the main video content is over—most effective when a user is waiting for the next video in a playlist.
When we ran the numbers in Choozle, in stream ads were shown to have a 55 percent completion rate, meaning 55 percent of total in stream video impressions made were watched in their entirety. So, although in stream video ads are a bit pricier than in banner video, they fit in more seamlessly with the user experience ultimately resulting in higher completion rates.
Why use video advertising, anyway?
According to the statistics shown above, there’s a staggering popularity for video advertising among marketers and, seemingly, among consumers. However, we wouldn’t be your friend if we didn’t point out that our latest digital advertising trends survey shows some opposing views.
Despite video being a major predicted digital advertising industry trend in 2018, 72 percent of consumers do not prefer video ads over other types of online advertisements. Surprisingly, it was not the youngest group (18-29) but rather 30 to 44-year-old respondents who prefer videos (38 percent) over any other age group.
This doesn’t mean you should shy away from RTB video ads—after all, there are a lot of factors that go into choosing your strategies. Just don’t overlook all the other types of ads like static banners, HTML5, connected TV, voice, etc. that can create a nice, well-rounded strategy in addition to your in banner video or in stream video ads.
And when it comes to choosing between in stream ads or in banner ads, we say in stream is the way to go.