Instream vs. Outstream Video Ads — Choosing the Right Format for Your Video Business

instream vs outstream video ads by bridtv above a laptop computer

According to statistics, the average person consumes 17 hours of online video content per week in 2023. In addition, they are twice as likely to share videos than any other content format. With so much interest in video content, it is no wonder that video ads are such a prolific source of income for publishers. However, before venturing into the video ad monetization waters, publishers need to get acquainted with various video ad formats, especially the difference between instream vs. outstream video ads.

A Quick Glance at IAB’s New Video Ad Classifications

In March 2023, the Interactive Advertising Bureau (IAB) came out with a new video ad classification system, which more clearly defined the various types of video ads. The new system recognizes four main categories of video ads:

  • Primary Instream Ads — Video ads that play before, during, or after a stream within a video player, with the sound on.
  • Accompanying Content — Similar to primary instream ads, but the video content itself is not the primary focus of the user’s attention. Rather, it is an accompanying addition to editorial content.
  • No Content/Standalone — Ads that we commonly refer to as outstream ads, i.e. standalone video advertisements not tied to any specific piece of content.
  • Interstitial Ads — Full-screen advertisements that cover the main content of the web page or app. 

The gradual implementation of these changes is already taking place, with many DSPs already having switched over to the new classification system. However, although these are important changes to the advertising landscape, they do maintain the traditional idea of the difference between instream (both primary and accompanying) ads and outstream (i.e. no content) ads. So without further ado, let’s dive into the debate of instream vs. outstream video ads.

Learn more about the March 2023 Update here.

What Are Instream Video Ads?

Instream ads are advertisements that show up within a video stream, i.e. while a user is watching non-advertisement video content. They are especially common on video-sharing sites such as YouTube. If you have ever viewed video content online, chances are that you’ve seen an instream ad. 

Monetize with pre-, mid-, and post-roll instream video ad formats.

Learn More

Types of Instream Ads

The Interactive Advertising Bureau makes a distinction between three main types of instream video ads: linear ads, non-linear ads, and companion ads. 

Linear Video Ads

Linear Video Ads
Linear video ads interrupt content playback and appear “in the line” with video content.

The most common type of instream ads, linear video ads show up before, during, or after a video, interrupting the stream. In that way, they are much like traditional TV advertisements. Depending on their position, linear video ads can be pre-roll (before a stream), mid-roll (during a stream), and post-roll ads (after a stream). Linear instream advertisements are the most lucrative for publishers, as they usually come with the highest CPMs.

Non-Linear Ads

non-linear ads or overlay ads
Non-linear ads (overlay ads) appear without obstructing or interrupting content playback.

Also known as overlay ads, non-linear video ads appear on top of a running video without obscuring or interrupting it. In other words, they are less intrusive than linear ads, as they allow viewers to keep watching content while the ad is playing. They can appear in the form of a banner ad, text, or rich media ad

Non-linear video ads are an excellent addition to any publisher’s repertoire since they complement linear ads perfectly and serve as an additional source of revenue. That is why TargetVideo allows publishers to combine overlay ads with linear ad formats to maximize revenue. 

Besides standard overlay banner formats, our publishers can also take advantage of a unique non-linear ad format — branded canvas unit. This format was designed to simulate the ad experience from the OTT and CTV space on the web and offer an excellent addition to your linear advertising efforts.

Engage users with a unique, L-shaped banner ad format from the OTT and CTV space.

Watch Demo

Companion Ads

companion ads
Companion ads show up alongside a video in the form of an image, text, or rich media.

Technically not an instream format in the narrow sense of the word, companion ads don’t appear within the video stream. However, they usually show up alongside a video in the form of an image, text, or rich media ad, but outside of the player itself. They appear in conjunction with a linear or nonlinear instream ad, earning them the name companion ads. They are great for improving brand visibility and fighting banner blindness.

What Are the Pros and Cons of Instream Video Ads?

When comparing instream video ads to outstream ads or other ad formats, they excel in many regards. One of the most notable ones is that instream ads come with higher CPMs. That is why they are the go-to choice for publishers looking to increase ad revenue. 

Another excellent aspect of instream ads is their compatibility with OTT and CTV advertising. So if you’re an OTT publisher, you should definitely consider enlisting instream ads in your ad monetization strategy. 

Despite all their advantages, instream ads come with a few downsides, too. One of the most important ones is that most users perceive them as highly intrusive, especially in the case of linear ads. 

Another thing to consider is that instream ads require publishers to have an HTML5 video player and existing video content. Unfortunately, not all publishers have a rich video library or the means to make one.

Luckily, with TargetVideo’s Video Content for Publishers, they can easily get original video content from an array of verticals, including food, home, parenting, fashion, and more.

Pros:

  • Higher CPMs
  • Compatible with OTT and CTV
  • Attention-grabbing and engaging

Cons:

  • Intrusive to the user experience
  • Require existing video content
  • Require an ad-compatible video player

Create additional ad-serving opportunities with original brand-safe videos.

Explore Brid.TV

What Are Outstream Video Ads?

Unlike their instream counterparts, outstream video ads appear separately from video content. Instead, they may show up in a website’s sidebar, in one of its corners, or within the editorial content. 

Publishers can serve outstream ads natively on the web page or through a third-party video player. In addition, they don’t need to have video content in order to serve outstream video ads. 

Outstream ads were originally designed as a mobile ad format, but they quickly proved themselves to be quite lucrative in the desktop advertising space, too.

Monetize with outstream ad units for maximum ad viewability.

Learn More

What Are the Types of Outstream Video Ads?

Since they are independent of video content, outstream ads come in an array of formats. However, in general, we can divide them into three broad categories.

In-Slide Outstream Video Ads

in-slide outstream video ads
In-slide video ads appear in one of the corners of the web page and follow the user as they scroll.

Likely the most common outstream format, in-slide outstream video ads appear in a corner of the webpage in a video player. They stick to that spot and follow the user as they scroll. In-slide ads start playing muted automatically. All of this makes them a great choice for boosting ad viewability.

Users may turn these ads off at will (or after a few seconds, depending on the player settings). Otherwise, the player can shut off automatically after the ad is over or keep playing more advertisements

TargetVideo’s publishers can easily set up in-slide outstream ads through the CMS. The in-slide unit comes with an array of customization options (button availability and positions, player colors, volume control, etc.), allowing publishers to tailor it to their liking.

See the in-slide ad unit in action here.

Boost ad viewability with a sticky, non-intrusive ad unit.

Watch Demo

In-Content Outstream Video Ads

in-content outstream video ads
In-content video ads appear in the heart of editorial content when users scroll down to where they’re embedded.

Unlike in-slide units, in-content outstream ads don’t follow the user around while scrolling. Instead, they show up within the editorial content in a separate video player. As the user scrolls down to where the in-content ad unit is located, the player loads and starts playing the ad. Although variations are possible depending on player settings, here’s how these ads generally behave as the user scrolls:

Player Visibility on ScreenPlayer Behavior
0%The ad loads on the page
<50%The player loads, but the ad doesn’t begin playing
50+%The ad begins playing
<50% after the user scrolls pastThe ad pauses (and continues playing if the user scrolls back to the player)
Ad player behavior by player visibility on screen

This video ad format is particularly popular with websites with lots of text-based content, as it enables a seamless and non-intrusive experience.

TargetVideo’s publishers can incorporate the in-content video ad format into their monetization strategy in just a few clicks through the CMS

See the in-content ad unit in action here.

Place video ads in the heart of editorial content on all devices.

Watch Demo

In-Banner Video Ads

in-banned video ads
In-banner video ads appear as short videos or gifs in the form of a banner on a web page.

Unlike the previous two formats, in-banner video ads are technically not a video ad format, but rather a banner ad in the form of a video. As a rule of thumb, these ads play without sound and may include captions or subtitles.

What Are the Pros and Cons of Outstream Video Ads?

Outstream video ads come with several irrefutable benefits, even when compared to their instream counterparts. One of the most notable advantages is that they are far less intrusive since they don’t interfere with the user experience.

Another big advantage of outstream video ads is that publishers can use them even if they don’t have any video content on their websites. This flexibility is undoubtedly one of their primary selling points.

However, as versatile as they are, outstream ads also have several notable flaws. For instance, unlike instream formats, their use is much more tightly regulated by advertising giants like Google. This is best demonstrated in the fact that, if they have the autoplay option activated, outstream ads must be set to “mute” by default, making them much less noticeable. 

Another notable flaw is that outstream ads are heavier on the back end and may slow down your website. These ads are also more prone to discrepancies in the communication between ad exchanges and ad servers.

Pros:

  • Less intrusive
  • Highly flexible
  • Don’t require video content

Cons:

  • More strictly regulated
  • Not as noticeable
  • Can impact website performance

Instream vs. Outstream Video Ads — Which Format Is Better?

As you have seen by now, instream and outstream video ads both have their fair share of pros and cons. That’s why we can’t say either is strictly better. They’re both suited for different types of publishers.

If you are a publisher with a rich video library or want to launch an AVOD service, you’ll be better off monetizing with instream ads. If you’d like to boost your ad revenue on a website without video content, outstream ads would be the way to go. 

However, we believe it’s best to use these two formats in unison. For instance, publishers could focus on instream advertising for maximum revenue but still serve outstream ads on pages without video content. That way, publishers can make the most of their ad inventory.

At the end of the day, what you choose is entirely on you. Here’s a quick overview of the areas in which these formats excel.

ParameterInstream Video AdsOutstream Video Ads
CPMs🆇
Ad Viewability🆇
User Experience🆇
Website Performance🆇
Variety of Formats🆇
Playback With Sound🆇
OTT & CTV Compatibility🆇
Instream vs. Outstream Video Ads Overview

Serving Instream and Outstream Ads With TargetVideo

If you’re looking for an easy way to put video ads on your website or app, a versatile online video platform like TargetVideo will be your best bet. Publishers can use our monetization solution to set up and serve instream or outstream video ads in just a few clicks. 

TargetVideo also has an array of advanced tools, services, and features designed to help you achieve the full potential of your monetization efforts. Use our Yield Optimization Engine to optimize price floors or leave all the work to our ad ops team with the Managed Ads Service. You can also receive quality display and video ads from reputable sources with our Premium Demand.

Sign up for a free trial or contact our sales team to get started!

Brid.TV

Need a video monetization solution for your ad-powered business?

Start Monetizing
Brid.TV Monetization

Are you ready to launch an AVOD business with TargetVideo?

GET STARTED

FAQ

1. What is the difference between instream and outstream ads?

2. What is an instream video ad?

3. What is an outstream video ad?