With the incredible rapid growth that online video sharing and video search sites are realizing, more and more advertisers are pumping money into video advertising. According to the latest research, online video advertising revenues in the US are expected to reach $7.1 billion by 2012 which is a 72 percent compound annual growth rate for the next five years. In 2008, the projections are just shy of $1billion.
Because of the keen interest of the advertisers towards the online video segment, many video sharing sites have been encouraged to come up with different formats for the placement of video advertisements. The quantum of investment in this segment has fueled innovation of the methods in which video sites are deploying online video monetization and advertising programs. In-stream (pre-roll, mid-roll, post-roll) advertisement formats have been in existence longest and have produced a good share of revenue for online video content producers.
Pre-Roll Format - Ads, typically videos in duration of 15 or 30 seconds are streamed before the video itself plays. This make the advertising incredibly prominent but causes plenty of issues with regard to user friendliness and many studies show this format to be unpopular with users.
Post-roll Ads - This format includes the advertisements at the end of the video clip and it is up to the viewer to decide whether to watch the advertisement clip or not. This format of advertisement is being used by certain video sites. However, this is not effective for the advertiser as often times users dont watch the entire video.
Mid-Roll Video Ads: Again, like the other in-stream ads, mid-roll streams a short video clip within the video player itself, only with mid-stream, the ad gets played in the middle of the video almost like a normal TV commercial. This seems to be somewhat less offensive to users.
Some of the video sites have started experimenting with different formats like, in-player banners: In-player ads sometimes include relevant text or image advertisements in the space available in video player between the outer margin of the video and the inner margin of the video player.
Contextual in-video advertising seems to be the way of the future with many different sites attempting to match videos with advertisements that are most relevant to the subject matter. Users like this format more as well as it does not disturb the experience of watching the entire video. This quality of the format makes it one of the most promising advertising formats for the future and there are many diverse ways in which to serve either images, clips, or text ads.
Of all the various experiments with contextual video advertising, one format has taken off and has even become the standard video advertising format that YouTube and many other sites have adopted instead of pre-roll ads. This format is known as the Overlay ad and it is basically a contextually relevant text ad that is shown in a portion of the player and does not annoy users as much as in-stream advertising.
I have given you a brief overview of the most common formats of video ads that are being tested and utilized at the moment. That being said, with growth being what it is, and video discovery as new as it is, we will certainly see many different companies innovating in regards to developing new and exciting formats for online video advertising.
Because of the keen interest of the advertisers towards the online video segment, many video sharing sites have been encouraged to come up with different formats for the placement of video advertisements. The quantum of investment in this segment has fueled innovation of the methods in which video sites are deploying online video monetization and advertising programs. In-stream (pre-roll, mid-roll, post-roll) advertisement formats have been in existence longest and have produced a good share of revenue for online video content producers.
Pre-Roll Format - Ads, typically videos in duration of 15 or 30 seconds are streamed before the video itself plays. This make the advertising incredibly prominent but causes plenty of issues with regard to user friendliness and many studies show this format to be unpopular with users.
Post-roll Ads - This format includes the advertisements at the end of the video clip and it is up to the viewer to decide whether to watch the advertisement clip or not. This format of advertisement is being used by certain video sites. However, this is not effective for the advertiser as often times users dont watch the entire video.
Mid-Roll Video Ads: Again, like the other in-stream ads, mid-roll streams a short video clip within the video player itself, only with mid-stream, the ad gets played in the middle of the video almost like a normal TV commercial. This seems to be somewhat less offensive to users.
Some of the video sites have started experimenting with different formats like, in-player banners: In-player ads sometimes include relevant text or image advertisements in the space available in video player between the outer margin of the video and the inner margin of the video player.
Contextual in-video advertising seems to be the way of the future with many different sites attempting to match videos with advertisements that are most relevant to the subject matter. Users like this format more as well as it does not disturb the experience of watching the entire video. This quality of the format makes it one of the most promising advertising formats for the future and there are many diverse ways in which to serve either images, clips, or text ads.
Of all the various experiments with contextual video advertising, one format has taken off and has even become the standard video advertising format that YouTube and many other sites have adopted instead of pre-roll ads. This format is known as the Overlay ad and it is basically a contextually relevant text ad that is shown in a portion of the player and does not annoy users as much as in-stream advertising.
I have given you a brief overview of the most common formats of video ads that are being tested and utilized at the moment. That being said, with growth being what it is, and video discovery as new as it is, we will certainly see many different companies innovating in regards to developing new and exciting formats for online video advertising.
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