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Online Video Advertising formats – banner video and in banner video vs. pre roll

Carlfred Giles - Wednesday, June 27, 2012

Ahh, the great debate. What form of online video advertising is more valuable or effective – pre-roll or video banner/in banner video?

Let’s first define the two formats.:

Sample in-banner video ad

In-banner is an actual banner ad (generally 300×250 pixels) that is a video player, that is, something not unlike an embed YouTube video which requires a push to play (very few publishers will allow auto-play videos to load on a page.)

Pre-roll is the :15 or :30 second video ads that play before a piece of video content. Hulu is making these famous, an example of which we’ve posted below:

Let’s explore the measurable elements of any advertising asset and score points for one or the other.

1. Click-through

Both in-banner video ads and pre-roll require that a viewer push “play” to engage the ad. This presents a unique challenge and/or opportunity for video ads, in that static banner ads require one click to be redirected to the advertisers’ site. With video ads, regardless of format, there is a “two click” conversion required – first, clicking to watch the video, and second, clicking from the ad to the advertisers site.

Rarely are pre-roll ads “interactive”, in that they can actually present a viewer the ability to click to a website being advertised in the ad. In-banner video ads, on the other hand, can easily use interactive elements to allow for real time clicking to a third party site.

1 point for in-banner ads

2. Impression value

Pre-roll ads are the first thing a viewer sees when they push play on a video player. They are priced higher then standard banner ads because there really is no waste – an impression is delivered and odds are the viewer sees the ad every time.

In-banner video ads, on the other hand, are charge on an impression basis just like standard banner ads – meaning each time the page is loaded, an impression is delivered. The banner could be below the fold and never displayed to the viewer, and an impression will be cannibalized. This creates waste and potentially a lot fewer views relative to impressions.

1 point for pre-roll

3. Engagement

A video banner can be highly engaging but can also be poorly executed – it really depends on the content. Most studies (including one by Forrester Research) show that pre-roll ads are generally annoying to viewers, and most would rather not have to sit through them. They didn’t “choose” to view the ad (they choose to view the video content) whereas a viewer would actually “choose” to view an in-banner ad simply by pressing play. Click-thru rates on pre-roll ads are down, suggesting that viewers are perhaps tiring of them and they way they are used.

Another intangible is the notion that viewers clicking on in-banner video ads don’t actually realize what they are clicking is in fact an advertisement. Using this line of thinking, in-banner video ads actually “sneak up” on the viewer, and could wow them if done well, or really upset them.

We call a tie on this one – 1 point to each

4. Pricing

We’ve seen pre-roll ad CPMs as high as $50. In-banner video ads can be delivered at the same rates as traditional banner ads. They don’t require a publisher to be set up with an ad network that delivers pre-roll; in most cases you could even just use a YouTube player as your in-banner asset (though not recommended for branding purposes.)

Compare an average pre-roll CPM of around $20-$25 to a in-banner of around $5-$10, and clearly there’s an affordability factor at play. Again, you have the potential waste of impressions with in-banner vs almost all pre-roll ads being seen for at least a few seconds (great return on your per-impression spend), so we’ll give the edge to pre-roll on this one.

1 point pre-roll

Final score: Pre-roll 3, in-banner video 2.

At Zpop Media, we work only with in banner video ads, so there’s no stuffing the box here. Our perspective on this subject may change, but perhaps this is why, in a study done by YuMe video advertising network, 96.2% of all online video ads served from Jan-Nov 2009 were pre-roll, while only 0.1% were in banner.

Top Ten Reasons To Use Pre Roll Video Ads

Carlfred Giles - Thursday, April 19, 2012

Video Advertising

By now, you’ve already heard that video advertising , specifically – pre roll video advertising has replaced traditional web advertisements such as banner and even interactive ads as the preferred method for marketing any company, product, or service online. There are many good reasons for this, and large companies have already figured out how valuable this ad space is, which is why they are snapping up space for their pre roll video ads on many of the top video sites online.

While big companies are buying up much of the best video advertising space, there are still opportunities for businesses that are ready to try their own pre roll video ads. If you still haven’t decided whether to try pre roll video advertising, here are ten reasons you should consider letting a pre roll video network place your ads.

1. Video Pre Roll Ads are the new television. The problem with advertising on TV is that a growing number of viewers use DVR type services, allowing them to simply skip ads. That’s why more companies are using pre roll video ads to ensure that their customers are actually watching the ads they are producing.

2. You can get targeted views with a pre roll video network. Unlike posting your ad and hoping that someone who might be interested sees it, a pre roll video network specifically places your ad in front of videos or on sites that are related. The essence of Video Advertising is that the viewer is on the video page watching videos that they actually want to see, therefore if you can get themed or targeted video ads to suit, your on a home run!

3. Customers pay more attention to pre roll video ads than other types of ads. When a viewer clicks a video they want to see, they are already focused on watching what is in front of them. That’s why pre roll video ads are more watched than other types- because customers are already planning to spend time paying attention to a video.

4. Pre roll video advertising has a much higher click through rate than nearly any other type of video ad. Customers enjoy interacting with video ads that catch their eye, and video ads are more successful than other types of ads at doing this.
Video Advertising

5. Pre roll video ads appeal to a younger generation. Teens and young adults are used to turning to online sources for information about products and services and to find out more about things they will be buying. Using pre roll ads shows them that you are a modern company that understands who they are.

6. Placing an ad with a pre roll video network is like hiring a marketing team without the cost. A pre roll video network takes a lot of the unknowns out of marketing this way- they can place your ad where it will be seen by the shoppers you are trying to reach, so you don’t need to be a web genius to successfully market your product. Video Advertising is essential to reach your customers or viewers online.

7. A pre roll video network can help you get more out of the ads you have already created. If you have an ad that you have created for television or as a stand-alone internet ad, your pre roll video network can use it again in the pre-roll format, meaning you get more for the money you have already spent.

8. Pre roll video ads can set your company apart from your competitors. While big companies have caught on to the value of pre roll ads, many smaller companies haven’t gotten on board. You can make your site appear far more competitive when you are advertising the same way that the “big players” in your industry already have. Video Advertising is far more ‘traceable’, data centric with heaps of data reportable from each Video Advertising campaign.

9. Your pre roll video network can find the right customers for you. If you have a brick and mortar location, a pre roll video network can use “geo targeting” or other technologies to advertise in your area. If you are online, your pre roll video network will advertise to customers who have been shopping for what you are selling. The possibilities are endless! We have many inquiries from local theme parks, shopping centers and tourist attractions for video advertising online.

10. Viewing of online videos is quickly surpassing any other type of media, and buying space on a pre roll video network is like purchasing a pre-made marketing home run for your business. Your shoppers and potential customers are already watching online videos, but if you aren’t using pre roll video advertising, what are they learning about you?

To know more about our video pre-rolls, call our eMedia Manager, Carlfred Giles at 318.323.1972 ext 119.

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