Businesses spent more than $95 billion on video advertising in 2024. Just in case that doesn’t sound like a lot of money to you, don’t worry—data from Statista suggests that number will only grow. These days, video marketing is beyond popular—it’s practically mandatory. Videos play a huge role in both digital and traditional advertising.
Brands can connect with a video-loving audience on social media platforms or reach a broader customer base with ads on streaming services. Learn more about different types of video advertising and how to get started producing your own.
What is video advertising?
Video advertising is a broad category within digital advertising that refers to using video content to promote a product or service. Place video ads on websites and social media platforms or distribute them with streaming services. The content can vary greatly in style and form, depending on the platform. Some ads are quick, vertical social videos, while others resemble traditional commercials.
This advertising technique has a few advantages. First, high-quality video ads help brands connect with viewers on an emotional level, since video is a rich and engaging format for telling stories. Second, video advertising platforms offer a variety of access points that digital marketing teams can use to reach a relevant audience.
5 types of video ads
Different video ad formats have different capabilities and limitations. Choosing the right format can help you reach your target audience. Here are five common types of video ads for marketers to consider:
In-stream ads
In-stream ads run in video players on websites like YouTube, Vimeo, and Facebook. They only appear to users who are currently watching videos. The ads can run before, during, or after the main video content and are known as pre-roll, mid-roll, and post-roll.
In-stream ads can be skippable or non-skippable. The specifications vary depending on the platform. On YouTube, for example, non-skippable ads can be up to 15 seconds long. Skippable in-stream ads can be any length, but users can skip them after five seconds. In-stream ads often offer interactive capabilities—depending on the platform, they may be able to include a link to your website.
Out-stream ads
Out-stream ads appear on websites without a video player and are displayed as pop-ups, banner ads, or direct embeds. These ads can also include interactive elements similar to in-stream ads. Businesses often embed these ads on blog pages or in articles. They usually begin playing without sound so as not to diminish the user experience.
Native ads
By design, native ads blend into the content surrounding them. Users might not even immediately recognize a native video ad as an advertisement when scrolling through social media feeds or blog posts. The point of these ads is to fit in seamlessly with the surrounding content.
Social media ads
Advertisers can pay to place video ads on social media platforms like Instagram, Facebook, and TikTok, with numerous placements available on each app. Instagram ads, for example, can appear in stories, on user feeds, in the Reels stream, and on the Explore page.
Over-the-top ads
Over-the-top ads, or OTT advertisements, play on TV streaming services like Hulu and Disney. They resemble commercials, but unlike traditionaltelevisionads, OTT ads are displayed via the internet.
These ads can appear on TVs and gaming consoles in addition to mobile devices and computers. The name comes from the notion these streaming services are bypassing cable companies by going “over the top” of their heads to reach customers.
Tips for effective video advertising
- Consider your audience
- Hook the viewer
- Get to the point
- Use text elements
- Write a CTA
- Incorporate interactive elements
- Optimize your content
Great advertisements spark an emotional connection and motivate viewers to take action—that’s a lot to accomplish in a 15-second video. Effective video advertising requires a combination of storytelling and platform-specific strategy. Try these tips to start creating compelling ad content that resonates with viewers:
Consider your audience
Think about your ideal audience while you’re brainstorming creative ideas and developing a distribution plan. A strong understanding of the viewer’s wants and needs can help you create high-quality content that connects with consumers on an emotional level. Selecting the right platform is crucial for reaching a relevant audience. Review user demographics to choose a distribution channel with relevant viewership.
🌟 Your target market underpins everything your business does. Here are the five steps to uncover yours and put that research to use.
Hook the viewer
Start with clear visuals to capture the viewer's attention. Modern viewers, especially those watching on social media, have short attention spans. They’re used to scrolling through video content and stopping when something catches their eye. Opening your video with a visually appealing image in the first few seconds can help keep viewers watching.
Get to the point
Viewers might not watch your entire video—you’re only guaranteed five seconds of watch time with skippable YouTube ads. Keep this in mind when you design your content. If you put your brand name and product near the beginning of your ad, viewers will understand the message, even if they only watch a portion of the content.
Use text elements
Out-stream ads and native ads often start playing without sound. Optimize your video for silent viewing to reach the widest possible audience. Elements like subtitles and text-on-screen graphics can help communicate your message without audio. Watch the video without sound before publishing to verify viewers have enough time to read the text on screen.
Write a CTA
Include a call to action (CTA) at the end of your video. Ensure the CTA tells them exactly what you want them to do next, such as make a purchase, visit a website, create an account, or download an app. Motivate viewers by writing clear instructions to support your campaign goals.
Incorporate interactive elements
If you’re using an ad format that supports interactive video, such as in-stream or out-stream advertising, take advantage of this feature. Including links makes it easy for customers to take action immediately while watching your ad, driving traffic, and encouraging conversions.
Incorporate interactive elements supporting your call to action and campaign objectives. For example, if you set a goal of increasing account registrations, you could include the CTA “Sign Up Now” along with a link to your registration page.
Optimize your content
Review video specifications and follow your chosen platform’s best practices for resolution, length, and aspect ratio to ensure your video looks good and plays smoothly. Prevent unwanted errors by reviewing your video content on desktop and mobile before publishing. Make sure text elements and graphics are large enough to read on mobile screens. Double-check for spelling or export errors before publishing.
Video advertising FAQ
How do you track and measure the success of a video ad campaign?
Platform tools like YouTube Analytics and Facebook Ads Manager will help you track your ad’s performance. To evaluate success, monitor key performance indicators (KPIs) like click-through and conversion rates, then compare them to your campaign goals.
How do you start video advertising?
Digital video advertising involves developing ad campaigns, creating video ads, and executing a distribution plan. To begin video advertising, start by defining your campaign goals and identifying your target audience. Solidify a content strategy and create high-quality video assets. Then, select a distribution platform, allocate a budget, set up campaigns, and track your results.
How do video ads make money for their creators?
Video advertisements make money when they drive conversions, but that may not always be the advertiser’s primary goal. Ads can also increase brand recognition, website traffic, and newsletter sign-ups. Compared to television advertisements, analytics platforms make it much easier to attribute sales directly to digital video ads.
