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Definitions of Online Video Advertising Formats and Methods

by Mark Robertson of ReelSEO.com

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 Ads - In this format of advertising, the advertisement clip is inserted before the actual video and while playing the video, the advertisement clip is played first and the viewer is compelled to watch the advertisement before the start of the real video file.

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 Ads - This advertising format is where the clips are included in the middle of the videos so that the viewer goes through the video advertisement if he is curious enough to see the remaining part of the video, this format is also very popular with many of the video sites.

Many of the video platforms have experimented with various differnent online video formats. One of these is in-player ads: 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.

The buzz in the past year has been with regard to a newer method of video ad delivery that attempts to match relevance by choosing video ads to run with only video that is similar in subject. This is known as contextual video advertising and it can take on a range of different formats with images or text being displayed within a portion of the video window, only being activated when clicked on.

One of the most popular version of contextual video advertising is that of what is known as the “overlay ad.” In this format, relevant textual ads are scrolled or displayed across a small portion of the video screen (usually the bottom). Users in particular prefer this format as it is relatively unobtrusive.

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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