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 Video Ads: Pre roll advertisements start before the video begins and the viewer has to sit through the entire advertisement, if he does not want to rely on chances, rather wants to ensure that ha can watch every single second of the video from its beginning.
Post-roll Video Ads: In post-roll ads, just like pre-roll, a 15 or 30 sec clip is streamed at the end of a video itself. This is usually launched in conjunction with pre-roll as well as often times, the advertiser never gets their ad seen as users most often only watch part of the 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.
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.
One of the most promising video advertisement formats is contextual advertising which attempts to match advertisements with the most relevant content and visa-versa. This ad itself can take of various different forms, in-video banners, lower-thirds, and contextual text overlay advertisements. The nice thing about this particular method is that it does not disturb the viewing of the video and it responds only when the viewer clicks on it.
Some of the video sites like to go through the video and include only relevant in-video text advertisements, which match the contents of the video and at the same time it does not disturb the process of video watching by the viewer. Youtube was one of the first sites to adopt this format as a standard and it is called Overlay Video Ads.
Although there are a few other formats that are being tested and utilized, the formats that I covered are the most commonly used formats at the moment. That being said, with the attention on this sector as it is, we will likely continue to see rapid innovation and will keep our eye out for the next best online video ad format.
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