OutStream-Video-Advertising in the fast lane

YouTube, IGTV (Instagram), Netflix, Amazon Prime, DAZN and, most recently, Facebook Watch - everyone wants a slice from the video and streaming cake. Unsurprisingly, the consumption of online video is one of the most popular activities while surfing the internet. For the first time in 2018, average online video consumption will exceed 1 hour per day (67 minutes)[1] . This development will be supported by the expansion of broadband internet, flatrate and mobile devices. In particular, Millennials prefer online videos and have almost completely given up the consumption of classic TV.

InStream vs. OutStream

The increasing use of online video has also led to significant growth in video advertising spending in recent years. These are expected to rise worldwide to USD 48 billion by 2022 [2]. Online video advertising can be divided into two categories:

  1. InStream - where the promotional video is placed before the actual content video (= pre-roll), in the middle (mid-roll) or after the video (post-roll).

  2. OutStream (also known as Native Video Advertising) – is video advertising that runs outside of a stream and can be divided into two sub-categories in-page and in-feed. In-page video placements are videos that run within classic banners and can be integrated into any advertising space. These usually have large formats such as Halfpage Ad or a Sitebar Ad. In the sub-category in-feed, the in-read or in-article format has developed strongly in the recent years. This format is placed directly in the editorial content.

Top-Trend: Outstream

According to IAB Europe's latest AdEx benchmark, video advertising recorded 35% growth that is four times higher than traditional display advertising [3]. Crucial to this growth was OutStream advertising with 73.4%, which outperformed InStream advertising (6.9%) significantly.

This development is understandable as the advantages of native video advertising (OutStream) are obvious:

  • Real Viewability:
    Compared to most pre-rolls, users voluntarily look at Outstream spots until the end. The video is automatically activated when the page is scrolled and only starts when half of the commercial is visible. This usually leads to high visibility.

  • Independence of video content:
    Native video advertising can also be placed in-feed between paragraphs, so video spots are independent of video environments.

  • User-oriented:
    Outstream is perceived much more positively by users compared to InStream, because they have the choice of switching the sound on or off or even completely hiding the ad right from the start. At the same time, it offers users many interaction options, such as - scrolling, clicking, mouse over, buttons, icons, resulting in a high user involvement.

  • High Awareness:
    Outstream has a strong attention and emotional performance due to its large size and the video format. Embedded in an editorial environment, it provides access to an interested audience.

  • Creation: The creation of the Outstream spots is crucial. The first 10 to 15 pictures of the video have to convince, even without sound. A good trigger can help the user to continue watching the spot.

OutStream advertising is a good alternative to classic in-stream formats. It offers the chance to achieve high coverage, especially for classic branding campaigns. The latest programmatic booking options will probably further increase its importance in the future.

[1] Zenith’s Online Video Forecasts 2018

[2] Statista

[3] AdEx-Benchmark 2017

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