Outstream video ad units - video ads that appear within content as readers scroll through - have taken the market by storm since their release in 2013. An increasing number of vendors provide this technology for publishers, to insert video ads into non-video carrying pages.
 
It’s no secret that video represents one of the highest yielding advertising opportunities for publishers, but also one of the most resource intensive to create. Publishers have invested significantly to develop the content required to provide video at scale. The Wall Street Journal, for example, employed a 40-person video team tasked with creating 40 videos per day, while CNN is pushing video views over page views as a measure of success.

Not all publishers can boast the resources of a WSJ or CNN, so the ability to insert video ads without supporting video content is an extremely valuable proposition to a large segment of the market. After nearly six months of offering our SpotX In-Content Ad Unit, we can share some insights around effective deployment.
 
1. Outstream units are considered less intrusive than pre-roll, but need to be placed effectively
Like all online ads, outstream units can detract from user experience. However, in many instances they are considered less intrusive than other video ad units. In fact, 60% of marketers polled in a recent eMarketer survey believed them to be less intrusive than other video ads. Publishers are using them with the greatest success when placed after the first few paragraphs of content across mobile web, in-app and desktop. One idea is to have the same placement and experience in an article across all delivery platforms. They show a real sweet spot within mobile content as they match strongly with dynamic, touchscreen interfaces. Also, publishers should pay attention to player size. We have seen larger player sizes generate upwards of 20% higher CPMs on average than smaller player size placements. This is often a key decision factor for buyers in programmatic environments.

2. Outstream delivers higher brand recall and message retention than instream
A Millward Brown study found that consumers watch outstream video ads for 25% longer than instream ads, and were much more likely to recall the brand advertised. While 'in-feed' videos have been popularized by social networks, premium publishers are at an advantage when it comes to viewability and completion rates. The scroll velocity on social networks or photo sharing apps is so fast that most content is quickly pushed out of the frame of view before a user can fully engage with it. In contrast, premium publishers have users that dwell much longer and more thoughtfully on content, and therefore, are exposed to these ads for longer and with higher brand retention.

3. Create highly viewable inventory where it didn’t previously exist
Outstream provides additional video inventory which can be sold as a standalone product, or to address supply shortages and support pre-roll campaigns. They can be used as extra fulfillment options for publishers to deliver campaigns, as well as in unison with pre-roll to create a media multiplier effect that further strengthens message delivery. With viewability being a big focal point for the industry, this inherently viewable ad format allows publishers to efficiently support those measurement standards.

4. Optimize formats for the highest return
It’s important to choose a platform that can deploy the highest paying ad creative available across all environments. This still means VPAID 1.0 Flash based creatives on desktop, but shouldn't stop there. The outstream unit should be smart enough to override Flash for HTML5 when Flash is blocked in a browser (mainly a problem on desktop) or when a higher paying HTML5 ad is available. Outstream units that have one implementation code that seamlessly provides the highest yield, and adapts to the specific constraints of each platform, such as desktop or mobile, will provide publishers the most robust solution. This is especially important as many advertisers begin to transition from Flash to JavaScript creatives, but there is still demand for both.

5. Not all outstream technology is created equal
With the explosion of outstream companies that have emerged within the industry, digging into the details and understanding the underlying technology has become increasingly important. Some outstream platforms are closed ecosystems, offering limited integration options with other technologies, and may not be able to incorporate a publisher’s other video advertising placements.

Some provide only a player solution, with limited or outdated connectivity when it comes to monetization. Sales presentations often claim a much wider swath of services, but under the hood, look out for inefficient plumbing laced with arbitrage. Sophisticated ad delivery capabilities, transparent reporting, UI actionability, and the supporting analytics are crucial in reducing ad load times, preserving user experience, and maximizing revenue in an increasingly programmatic world. A single platform effectively supporting both the outstream execution itself as well as robust monetization capabilities can also help save on monetary and resource-related costs.

As the format continues to gain traction, publishers will likely get more involved in selling their own outstream inventory, rather than relying solely on third parties for “fill.”  This evolution will increase the importance of integrated features such as self-service tools and Deal ID enablement.

As publishers continue to refine their approach toward fewer, higher-yielding ad placements, we expect outstream video’s growth to not only continue, but accelerate.  There’s no doubt asking the right questions and picking the right technology partner will have a major impact on your success.