Unlock the Power of Video Advertising: Your Complete Guide to Success

Video advertising has been one of the most popular ways to engage digital audiences. This shift is reflected by the IAB Digital Video Advertising Spend Report, where the amount spent on digital video ads in the US increased from $47.2 billion in 2022 to $54 billion in 2023, respectively. This number was calculated to rise by 16%, hitting $62.9 billion in 2024.

The report also unveils that CTV ad spend is responsible for nearly $20 billion, advertisers should plan to increase their investment in CTV and social video within the next year. With the internet, smartphones, and streaming services, most brands have turned towards video ads because they capture users’ attention and boost their interaction more effectively.

By 2024, video ad spend worldwide is predicted to be over $190 billion, the lion’s share of this budget going to mobile video advertising.

It is now the perfect time to know about video advertising, emerge in their trends and practices to enhance reach and audience engagement.  Dive into our guide on video advertising to learn more.

What is Video Advertising?

Video advertising is all about using videos to promote a product or a service in a way that grabs users’ attention. These ads are often seen before, during or after a video and they can be shared across platforms, from social media to websites, for distribution and exposure.

Unlike text or image ads, video ads offer a more dynamic and emotional experience. They allow brands to create a stronger connection with their audience. In fact, a survey by wyzowl found that 44% of people would rather watch a short video than read things like eBooks, manuals, or infographics. Many customers prefer watching a product video over reading a product description as it’s faster, more engaging and helps them better understand the product.

Types of Video Advertising

Each type of video ad has its own strengths, allowing businesses to select the one that best fits their goals or message at any given time. It’s also possible to use a variety of formats within the same campaign to create a more well-rounded marketing strategy. 

Below are some of the most common video ad formats:

In-Stream Ads

In-stream ads are one of the most popular forms of video advertising. These ads play before, during or after video content. They are also known as pre-roll, mid-roll and post-roll ads on YouTube.

Pre-roll ads are particularly great for building brand awareness since they show up right before the video starts.

Also referred to as linear ads, in-stream ads are embedded within video content which makes it easier to engage viewers.

They can either be skippable, where viewers have the “Skip Ads” option after 5 seconds if the ad is longer than 15 seconds, or non-skippable, like Youtube bumper ads, if the ad is shorter. 

Additionally, some in-stream ads can be interactive, encouraging viewers to click directly from the ad. This interactive element makes people take immediate actions, like visiting a website or a landing page.

Out-Stream Ads

Out-stream ads are not like in-stream ads. They play outside of video content, often starting automatically on mute as an overlay. These ads aren’t linked to the content video, viewers can scroll past or pause them if they’re not interested.

Out-stream ads typically appear on news websites or e-commerce platforms, often within articles or standalone units. If a viewer clicks on the ad, the content they’re watching pauses immediately.

Out-stream ads are effective for increasing brand visibility and don’t depend on existing video content to be displayed.

Native Ads

Native video ads blend in with the content video, and they are getting more and more sophisticated. Instead of interrupting the user experience, these ads fit right into the flow of the content, whether it’s on a news site or a social media feed. This makes them a great way for advertisers to reach people without being too pushy.

Since native video ads feel more like regular content, users are more likely to watch and engage with them. They appear in social media, news articles or at the end of blog posts. Because they don’t look or feel like traditional ads, people tend to trust them more, which can lead to higher engagement and better results for advertisers.

Shoppable Video Ads

Shoppable videos allow viewers to shop directly from the ad without leaving the content video. The Clickable overlays with product images and information makes it easyfor users to buy the product. Thiscreates higher chances of turning views into conversions.

When someone watches a video with a product description, a link or button pops up, then they can purchase it immediately. This creates a smooth shopping experience, where viewers can buy items straight from the app they’re using, like TikTok Shop.

These ads can be featured on social media platforms or even on landing pages of websites, offering a convenient and direct path to purchase.

Rewarded Video Ads

Rewarded video ads are a combination of in-stream and out-stream formats. They are usually seen in mobile games. They prompt users to watch ads and get something in return, usually an in-game reward like extra lives, bonus points or new tools. In fact, around 62% of mobile gamers regularly interact with these ads because of the rewards.

What makes rewarded video ads great is the benefit for both users and brands. Users get rewards and brands gain awareness in an uninterrupted format. It’s a win-win for both sides because viewers are genuinely engaged with the content.

Top 5 Benefits of Video Advertising

Video content has been completely taking over the internet and it has become one of the leading formats on social media platforms like YouTube, Facebook, Instagram, and TikTok among others. Learning about their benefits can help to understand why they’re so effective.

Here’s why video advertising matters for businesses:

Wide Reach

A content video can go viral, which means it can go beyond targeted audiences and significantly increase brand awareness worldwide.

Statista reported that in 2022, the average time spent watching online videos was 19 hours a week. Because videos attract so many viewers, including video ads in your marketing strategy is a great way to connect with more people and grow your brand’s visibility.

Higher Engagement

Video ads don’t just build awareness, they also capture attention and keep people engaged. The share of a 2021 Insivia report showed that when people watch video, they remember up to 95% of a message compared to just 10% when reading text.

Moreover, video ads often include CTA buttons that viewers can click to visit landing pages which potentially increase conversions.

High ROI

Even though video ads can take more effort and expense to produce, they will provide a great ROI. According to wyzowl, 90% of marketers say video ads have boosted their conversion rates. 

Video ads have the ability not only to capture viewers’ attention but also to drive action effectively, makeing it a great advertising mean to generate leads and worth investment for many businesses.

Quick Insights

Video ads are a great way to deliver information quickly and effectively, especially when there’s a lot to share. Unlike text or images, videos engage multiple senses, which increases the chances of remembering the message.

In today’s fast-paced digital world, we still see how well they can evoke emotion and highlight important messages to capture attention. Plus, they’re more likely to be shared across social platforms that help to increase reach.

Mobile Optimization

With more than 75% of video consumption occurring on mobile devices, it’s clear that video ads are for mobile users, who typically engage with video content more than those on desktops.

To enhance mobile viewing experiences, brands should ensure that videos run smoothly on smartphones and are visually appealing on smaller screens. What is more important for mobile platforms is to consider whether the video’s orientation is landscape or portrait.

Best Practices for Effective Video Ads

People tend to favor video ads over other formats because video is more engaging and easier to remember than text-based content. Videos also allow brands to tell their stories in a more dynamic and personal way. Moreover, native video ads blend smoothly within content, providing a less disruptive and more enjoyable experience for viewers.

While successful video ads can generate massive engagement and conversions, not every campaign achieves this. To boost the chances of success, it’s crucial to follow the below practices that can maximize ROI and drive the best results.

Keep it Short

Most people have a short attention span, so it is important to make video ads concise and interesting, better to be under 30 seconds. The shorter the ad, the higher the chance viewers will watch it until the end. If the messages in the ads are delivered quickly, people are more likely to stay and absorb what the brand is trying to say.

Keep the Content Engaging

The first three to five seconds in a video ad are to grab viewers’ attention. It should start with an interesting fact, a thought-provoking question or even eye-catching visuals to captivate viewers. The first few seconds are key to evoke curiosity and hold interest.

In fact, people will skip ads for sure, so brands tend to put their product information or the logos or the messages in the first few seconds. While it is important to introduce the brand early, be careful with how we should place the information.

Google data shows that showcasing a brand name in the first five seconds can sometimes prompt viewers to skip the ad, but even when they do, brand information is still in their mind and they will remember the product message.

Strong Call-to-Action (CTA)

At the end of video ads, a clear and persuasive CTA is key. Whether it’s visiting a website, making a purchase or signing up for a newsletter, CTA will guide viewers toward the next step.

It’s also smart to include other CTAs throughout the video, not just at the end, since some viewers may leave before finishing. Keep the CTA simple and direct, making sure it conveys exactly what the intended message or the clear action steps to follow without any confusion.

Optimize for Mobile

With 4.48 billion people using smartphones in the world, it’s crucial to ensure video ads are mobile-friendly to increase the chance of delivering ads to the right people.

Are the video ads ready for mobile? And how should we appeal to mobile viewers? Think about vertical (9:16) or square (1:1) ratio for Instagram Stories and TikTok to create a seamless viewing experience. Font size also matters, the text should be large enough to read easily on smaller screens. 

Future Trends in Video Advertising

A recent study shows that 51% of respondents are more likely to share video content over blog or social posts. Video content will be more promising than ever for businesses in the future.

In order to help the business stand out and succeed, let’s explore some video marketing trends to stay ahead. 

AI-Powered Video Ads

AI is transforming video marketing, they can make the ads more effective by personalizing content to individual viewer preferences.

As AI technology continues to evolve, tools like generative AI will play an even bigger role in creating and editing video content. This trend, highlighted by Danielle Warren – a senior video editor from Google, is expected to boost productivity in 2024 and beyond, helping video teams “do more with less”.

With AI, companies are already seeing success, 75% of businesses use AI for video creation and 96% report positive ROI with the help of AI for video marketing strategies.

Interactive Video Ads

Business Insider points out that interactive videos have a CTR of up to ten times higher than regular social videos. Because of the engaging basics of interactive content, this type of interaction makes viewers more likely to take action.

Interactive video ads allow viewers to engage directly with the content, like clicking on links, making purchases, or exploring products without leaving the video.

The dynamic visuals and active participation grab attention and encourage more clicks than static ads, leading to an average CTR of 1.84%, which is higher than other digital ad formats.

Short-Form Video

Short-form videos, typically under a minute, are a powerful tool for capturing attention quickly and delivering concise messages. These bite-sized clips have become a leading trend in video marketing, with 39% of marketers reporting the highest ROI from short-form content.

With nearly 5 billion social media users worldwide, short-form videos on platforms like TikTok, Instagram Reels, and YouTube Shorts are key to engaging audiences and growing brand reach in a fast-paced digital world.

As people’s attention span gets shorter, being able to tell your brand’s story fast is critical.

Long-Form Video

Short-form videos are quick and grab attention fast, but long-form videos offer more depth and keep people engaged longer.

Long videos are great for driving conversion rates, generating backlinks and getting more interactions like comments and shares due to their comprehensive nature. A research from Vidyard shows a 34% increase in conversion rates when using video content in video ad campaigns.

While short videos continue to be popular, long-form content is also important, especially on platforms like YouTube where users enjoy watching full videos. Brands can use long videos to tell bigger stories, explain things more clearly, and reach people in a more meaningful way.

YouTube remains a top choice for video marketing, with 78% of marketers saying it’s the most successful platform. While it has short-form videos, YouTube shines with long-form content like podcasts, explainer videos, and event recaps.

Soundless Optimization

Around 85% of videos on platforms like Facebook are watched without sound and this trend is growing. This is because many people watch social videos at work or in public where the sound must be off. 

To adapt this trend, the videos need to be engaging without audio and the messages of the ads should be delivered through captions, visuals or on-screen texts. This trend isn’t slowing down, so make sure the videos are ready for a soundless world.

AdTech Platforms are Involved in Serving Video Ads

When serving video ads, multiple AdTech platforms come into play, working together to ensure the smooth delivery of content from advertisers to publishers. 

Here are the key platforms that facilitate this process in the digital advertising ecosystem.

Demand-Side Platforms (DSPs)

Brands and advertisers, known as media buyers, use DSPs to purchase video ad inventory from publishers in real-time auctions (RTB) across multiple websites or apps. 

They automate the buying process and offer detailed targeting options to reach the right audience efficiently while managing costs. Some popular DSPs include Google Display & Video 360 or The Trade Desk.

Supply-Side Platforms (SSPs)

On the other hand, SSPs are used by publishers to sell their ad inventory to publishers through RTB (Real-time Bidding). These platforms can optimize the ad inventory, making sure publishers get the best price for their ad slots.

For video ads, video SSPs are especially useful because they include analytics and reporting for publishers to manage their inventory effectively across various devices. Google Ad Manager, PubMatic, and Geniee are some well-known SSPs.

Video Ad Servers

These platforms manage the storage, tracking and delivery of video ads for advertisers. They also help publishers decide which video ads to display and handle ad tags from various campaigns. 

Essentially, ad servers ensure that video ads are delivered efficiently and measured accurately.

Video Ad Networks

Video ad networks connect publishers and advertisers by aggregating ad spaces from publishers and selling them to advertisers. While most ad networks don’t own the media, they simplify the buying and selling process.

However, some large platforms like Facebook and Google operate as “walled gardens,” controlling both the media and the ad transactions.

The Video Ad Serving Process

Video ads are served through a process similar to display ads but it focuses more on showing video content.

The process of serving video ads can be complex based on the number of AdTech platforms because each platform needs to handle multiple requests for ads and bids.

Let’s see a simplified breakdown of how it works

1. User Visits a Site

When a user visits a website that contains a video player, the browser sends a request to the publisher’s web server to get the main video content. This request includes information like devices, location and content preferences, which helps in targeting relevant ads.

2. Server Sends Video Info

The website’s server sends back code to the browser, telling it where to get the video and how to display it within the video player.

3. Video Player and VAST Support

The video player, which should support both HTML5 and the Video Ad Serving Template (VAST) standard, processes the instructions and prepares to communicate with ad servers.

4. Video Ad Request

Once the video content is loaded, the video player sends a VAST request to the publisher’s ad server, requesting a video ad to be shown. At this stage, the publisher’s ad server also counts an impression.

5. Ad Selection

The ad server programmatically selects which ad to display based on targeting or bidding result and sends the chosen ad markup to the video player. In programmatic advertising, this step may involve RTB where multiple advertisers bid for the ad space.

6. Ad Fetching from Advertiser’s Ad Server

The video player then uses the ad markup to send a request to advertisers’ ad server, which counts another impression and responds with a link to the actual video ad file. In many cases, this video file is hosted on a CDN.

7. Content Delivery Network (CDN)

The video player sends a request to the CDN, which delivers the video ad file back to the video player and plays it before or during the main video content.

In cases where the ad space is sold through programmatic auctions like RTB, multiple AdTech platforms may be involved in auctioning off the ad space, which usually happens in milliseconds. These platforms include DSPs, SSPs, and ad exchanges, all working together to select the highest bidder’s ad.

The AdTech platforms work together to help advertisers and publishers in real-time, making it easier for ads to reach the right audience and publishers can earn more from their ad space.

If managing these platforms seems overwhelming, Geniee can help. With our expertise, we can simplify the process and provide solutions that maximize your advertising efforts. Connect with Geniee today to learn how we can streamline your AdTech needs and help grow your business.