The art of video in advertising has never been more prevalent in the modern age. Here’s everything you need to know about video advertising.
(Updated on September 2024)
Global brands constantly look for ways to provide compelling visual content to the everyday consumer. Of the several channels that can execute this goal, video advertising continues as one of the most used methods of marketing.
But what makes a good video campaign? What are the different types of video ads you can create? How do you stay competitive in this ever-evolving marketing landscape? Today, we tackle all these questions and everything you need to know about video advertising.
Video advertising: defined
Although video advertising seems like a very broad concept, it can be defined in several ways.
As the name suggests, video advertising involves the process of selling and promoting a product or service through the use of videos. Specifically, it is a form of video marketing in which promotional content or advertisements are displayed with video content, encompassing those of online display ads.
Video ads can be displayed through mobile or desktop web browsers, mobile devices (whether mobile web or mobile in-app), over-the-top (OTT) devices, and more. They can also appear in native video ads promoted on a website, in social media video ads, or in programmatic advertising.
Typically, video advertisements can play or be displayed in various ways: before (or known as pre-roll), during (mid-roll), or after (post-roll) the main streaming content the user is watching. It can also be a standalone ad. Meanwhile, companion ads include rich text media or images that don’t interrupt the video experience.
Moreover, there are three main formats of video advertising: linear, non-linear, and companion ads.
Linear video ads are displayed as if it was part of a sequence or order of the streaming content whether it’s displayed before, during, or after, the video content (think TV commercials). Non-linear video ads run concurrently with video content so users see the ad while viewing the content. Meanwhile, companion ads are ads that include text, images or other rich media that wrap around the video which can run alongside either or both the video or ad content.
Now, let’s put this into the context of marketing and strategy.
A video advertising strategy is how a brand can utilize video content to promote itself. It involves setting goals, planning the content of the videos, knowing which audience to target and where to find them, how exactly to target them and which platforms to use, and measuring the impact and results of your campaign.
Types of video advertising
There are many different types of video ads you can use for your campaign. Here are some of the most common types of video ads:
In-stream video ads
As the name suggests, in-stream video ads are embedded or appear in the same video environment. This means that the video ad could be played pre-roll, mid-roll, or post-roll from the main video content. One of the most common examples of in-stream ads is those that appear on YouTube videos.
Outstream/Native video ads
Outstream video ads are designed to appear in non-video environments such as websites or in-article spaces. Typically, they start playing when a user views or opens the ad and automatically pauses or closes when the viewer scrolls past them. They can appear in-page (via a customized video player that appears on the website), in-banner (appears as an eye-catching ad at the top of the webpage), or in-text (designed to appear as the user scrolls through the page).
Outstream video ads are akin to native ads because they blend with the content and feel less intrusive for the user. It makes for a more seamless browsing experience and could then result in higher conversion and engagement rates.
Social media ads
These are standalone ads that appear in the user’s social media feed as they scroll. Platforms such as Meta, Instagram, and TikTok have their unique video ad formats that blend seamlessly with organic content.
Interactive video ads
As the name implies, these video ads integrate interactive elements into the ad. It could range from clickable areas, quizzes or polls, games, or any other elements. These ads are effective if you want better engagement with your audience and to capture their attention or obtain valuable information and feedback from them (such as consumer behavior).
Shoppable video ads
These ads also integrate interactive elements into their campaigns. Specifically, giving viewers the option to make purchases directly from the ad via embedded links or hotspots that viewers can click on to complete a purchase. They can also try to learn more about the product or service in the ad, shortening the customer journey and increasing conversion rates.
Virtual Reality (VR), 360-degree, and Augmented Reality (AR) ads
These video ads take interactivity to the next level, letting the audience have a more immersive and dynamic experience. These types of video advertisements are great for when you want to demonstrate a product or for more effective storytelling, but tend to be more costly and require certain technology for proper execution.
VR ads offer a fully immersive experience that often requires a VR headset where everything is fully virtual and controlled by the system. 360-degree videos allow users to control their perspective by dragging the video to look around. AR video ads incorporate virtual or digital elements into the real-world setting that is typically accessed or controlled by a smartphone or other digital device.
Benefits of video advertising
Video advertising is now a crucial part of digital marketing strategies for various reasons. This medium is effective in engaging audiences and ensuring you a return on investment on your ad spend. There are various advantages and perks to using video advertising. Here are some reasons why you should invest in video advertising:
Better audience engagement and retention
Video ads can increase brand awareness when people watch. They can go beyond awareness and include CTA buttons to drive online actions and conversions. Video advertising is effective at capturing and retaining viewer attention due to its visual and auditory elements. The storytelling in video ads creates a narrative that connects with viewers on an emotional level, making the message more memorable and impactful.
Improved audience targeting and personalization
Video advertising now has advanced targeting capabilities: advertisers can use data to target specific demographics, interests, and behaviors. The use of artificial intelligence and machine learning in advertising allows for a more personalized approach to video content. Different versions of video ads can be created for different audience segments, making the ads more relevant and effective.
Better storytelling and brand-building
Videos grant more opportunities to tell a story to the viewer and can create an emotional connection between them and the brand. Elements such as the music, dialogue, visuals, and scenery can help convey the brand and campaign’s message to the consumer. As a result, it creates a more authentic brand-building experience and impactful viewing experience compared to traditional print advertising and static imagery.
Improved response to customer pain points
Marketing with video allows for more flexibility in positioning your product or service and helps alleviate one of the biggest customer pain points: clicks. Video ads that start playing automatically within content eliminate the need to rely on clicks. Users are exposed to the ad while engaging in an activity of their choice, such as watching a YouTube star’s episode or playing a mobile game.
When users opt-in to watch a video, engagement rates tend to increase significantly. Giving viewers control over the ads they watch provides an opportunity for brand engagement on their terms, which is an effective way to achieve your KPIs.
Flexible and adaptable to ever-changing consumer habits
The way people consume content has shifted to online and mobile platforms. Technology advancements have made video content more accessible and impactful. Video content is now dominant, especially among younger demographics.
Social media platforms like YouTube, TikTok, and Instagram have contributed to this shift. Consumers often share these videos on their own social media and engage in the comments sections, making it an effective method to better audience brand-building and customer engagement.
Advertisers are creating tailored content for these platforms to reach their target audience effectively.
Examples of video advertising
Gymshark’s “celebrity prank” stays true to its humorous branding strategy
The British sportswear brand Gymshark launched a hilarious TikTok campaign called the “Celebrity Prank” back in 2023. The social media video ad campaign made use of celebrity lookalikes who appeared at their flagship store in London at various times of the day. It incited customer frenzy and gained a lot of attention which incited bigger brand awareness and customer engagement for the brand.
Hyundai Australia incorporates AR in its video campaign
Hyundai Australia put the viewers in the driver’s seat through the use of augmented reality in its video ad campaigns. To showcase its i20 N model, Hyundai launched a series of video ads on Meta and Instagram. The video included a CTA button that included a “Try On” filter with the use of AR elements, giving viewers the chance to simulate an experience of actually riding the car. The campaign resulted in an 8.4-point brand lift compared to the brand’s standard video ads.
Hotels.com makes a witty play on “silent” videos
Hotels.com takes advantage of viewers relying on closed captioning as well as the consumer behavior of watching videos without sound in public (and scrolling through ads that autoplay on social media with their volume turned off) with its “Silent Piano” video ad. The ad itself is silent (like a silent movie), and makes use of the compelling text narrative to keep viewers on edge on what the message it is trying to convey. The message pokes fun at how ads autoplay silently on Meta when people scroll mindlessly and ends with a call to action for viewers to download the Hotels.com app.
Final thoughts
Video advertising is important because it engages viewers and adapts to consumer habits. It drives conversions and offers targeted, personalized content. Video advertising also builds brand identity through storytelling and overcomes traditional advertising limitations.
As digital technology evolves, video advertising is expected to become more integral in marketing strategies across industries.
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