Pros and Cons of Pre Roll Video Ads and Instream Video Ads

From the nineties onwards, online ads dominated the marketing strategies of many companies. Then, in the first decade of the second millennia, traditional TV commercials made a comeback and hit the World Wide Web in the form of online video ads that roll out before or after watching a video. Lasting from 10 to 15 seconds, these scripted productions also made use of CGI characters, like Geico's Gecko, and hired famous actors as product endorsers. Generally, the ads were web-edited versions of previous TV spots.

What's Up with Pre Roll Video and Mid-Roll Ads?

Industry reports culled from various marketing research agencies revealed some significant facts about pre roll video content. Completion rates for pre roll video ads are more indicative of consumer intent to buy compared to click-through rates from casual surfers, according to Vindico's 2012 Insights Report. In addition, people who watched videos longer than twenty minutes often finished watching the pre roll ads around 90% of the time despite an increase in ad loads served in 2011. In contrast to these findings, viewers completed mid-roll ads 94% of the time, outmaneuvering the rates for pre-roll or post-roll videos.

By the fourth quarter of 2012, ads companies have seen an increased response to interactive video ads, which they think will become the preferred ad format in 2013. Naturally, there's a higher completion rate for videos that offered a reward, such as discount coupons or a surprise gift. A comparative study of opt-in and pre roll video ads showed the effectiveness of incentive-laden ads to increasing brand favorability and purchase intent and an efficient use of pre roll videos to drive brand awareness. On one hand, ads server Ooyala pointed out video ads served through a connected TV device or game console not only had better completion rates than mobile, tablet and desktop viewers, but also delivered the best conversion rates.

InStream Video Ads versus In-Banner Videos

Ads shown in-stream are like TV spots quickly interrupting your viewing experience. Of course, they have a higher completion rate than pre or post rolls because most viewers were too eager to continue video streaming to even care about a brand-new Ford model. In reverse, an in-banner video is embedded in an ad, which the user must click before the video can be played. While one disrupts a video stream, the other deceptively increases clickthrough rates for the banner ad display. Either way, the advertiser reaches his goal of increasing brand awareness and goodwill among consumers.

In general, mid-roll ads are the same as instream videos. Though these ads have better completion rates, they're not as successful in bringing in the serious buyers as ads served through connected TV and game consoles. These devices have users with a deeper engagement in the video ads they often watched through the end. Some mobile games rewarded their players with free game credits after watching a video ad and rating it. Also, around 59% of Australians use tablets while keeping the TV on. They tend to lean back and accept pre roll ads in videos because it's usually after six and a time to relax at home.