Key Takeaways

• Instream video ads play within existing video content (pre-roll, mid-roll, post-roll) while outstream ads appear within non-video content like articles

• Instream typically delivers higher CPMs ($10-25) than outstream ($5-15) but requires dedicated video content

• Outstream provides monetization opportunities for publishers without video content

• Proper implementation requires understanding of VAST/VPAID standards and technical considerations

• Both formats can be used complimentarily in a comprehensive monetization strategy

Understanding Video Ad Formats: The Basics

Let's face it, video advertising isn't going anywhere. Publishers who aren't monetizing with video are leaving serious money on the table. But jumping into video ad monetization isn't as simple as slapping some ads on your website and calling it a day.

The two main approaches to video monetization: instream and outstream, might sound similar, but they function in completely different ways and come with their own set of implementation challenges.

I've worked with dozens of publishers who were confused about which format would work best for their sites. The truth is, the right choice depends on your content, audience, and technical capabilities.

Before we dive into the technical details, let's clarify what we're talking about:

Instream video ads play within an existing video player that's showing actual content. Think YouTube videos with ads that play before (pre-roll), during (mid-roll), or after (post-roll) the main video.

Outstream video ads appear within non-video content contexts, like between paragraphs in an article or in a dedicated slot on a webpage. They typically autoplay when visible and pause when scrolled out of view. You can learn more about these in our guide to outstream video ads.

Instream Video Ad Implementation

Instream video is the OG of video advertising. It's been around longer and still commands some of the highest CPMs in digital advertising. But it comes with specific implementation requirements that not every publisher can meet.

Technical Prerequisites

To implement instream ads, you'll need:

1. Video content: This might seem obvious, but you need actual video content for people to watch. Creating quality video content requires resources many publishers don't have.

2. Video player: You need a compatible video player that supports ad insertion. Popular options include:

   • JW Player

   • Brightcove

   • Video.js

   • Kaltura

   • Custom HTML5 players

3. Ad server integration: Your video player needs to communicate with your ad server using video ad standards. Most publishers use Google Ad Manager for this purpose.

Implementation Process

Here's a typical implementation workflow for instream video ads:

1. Choose ad insertion points

   Decide where ads will appear in your content:

   • Pre-roll (before content)

   • Mid-roll (during content)

   • Post-roll (after content)

   Each position has different performance characteristics. Pre-roll typically has highest completion rates but can increase bounce rates. Mid-roll has good viewability but can interrupt user experience. Post-roll has lowest viewership but doesn't disrupt content consumption.

2. Set up VAST/VPAID tags

   This is where things get technical. VAST (Video Ad Serving Template) and VPAID (Video Player Ad Interface Definition) are industry standards that facilitate communication between video players and ad servers.

   // Example code for setting up a VAST tag in a player
   videoPlayer.setup({
     file: "content.mp4",
     advertising: {
       client: "vast",
       tag: "https://adserver.com/vast-tag-url"
     }
   });

   VAST provides the structure for basic video ads, while VPAID enables interactive elements. Most modern implementations use VAST 4.0 or higher, which includes support for features like server-side ad insertion (SSAI).

3. Configure player parameters

   You'll need to configure:

   • Skippability (when can users skip ads?)

   • Maximum ad duration

   • Ad waterfall or header bidding setup

   • Fallback options if ad fails to load

4. Test and optimize

   Testing on different devices and browsers is crucial, as video playback behavior can vary significantly. Pay special attention to:

   • Mobile performance

   • Ad loading times

   • Player responsiveness during ad transitions

Monetization Potential

Instream video typically commands CPMs ranging from $10-25, significantly higher than display advertising. The reasons are simple:

• Higher viewability (typically 70-90%)

• Better engagement metrics

• Less ad fraud

• Premium inventory perception among advertisers

However, these higher rates come with tradeoffs in terms of implementation complexity and content requirements.

Outstream Video Ad Implementation

Outstream video has gained significant popularity because it allows publishers without dedicated video content to tap into video ad budgets. It's generally easier to implement than instream but usually comes with lower CPMs.

Technical Prerequisites

The beauty of outstream is that it doesn't require existing video content or a dedicated player. Here's what you do need:

1. Ad placement zones: Identify suitable locations where outstream units can appear without disrupting user experience. Consider places like in-article ad positions.

2. Integration with supply-side platform (SSP) or direct ad server: You'll need to work with platforms that support outstream formats.

3. Page load optimization: Outstream can impact page performance if not properly implemented. Consider using lazy loading to improve performance.

Implementation Process

1. Select an outstream provider

   Major providers include:

   • Teads

   • Connatix

   • Unruly

   • SpotX

   • PubMatic

   Most offer both managed service and self-serve options.

2. Place the ad unit code

   Implementation typically involves inserting a JavaScript tag:

   <!-- Example outstream implementation code -->
   <div id="outstream-container"></div>
   <script>
     (function() {
       var script = document.createElement('script');
       script.async = true;
       script.src = 'https://outstream-provider.com/tag.js';
       script.setAttribute('data-unit-id', 'YOUR_UNIT_ID');
       document.head.appendChild(script);
     })();
   </script>

3. Configure behavior settings

   Key parameters include:

   • Autoplay conditions (usually in-view)

   • Sound settings (typically muted by default)

   • Collapse behavior when completed

   • Placement position (in-article, sidebar, etc.)

4. Setup viewability triggers

   Outstream units should only play when in view, which requires proper viewability detection:

   // Simplified viewability detection example
   function isElementInViewport(el) {
     var rect = el.getBoundingClientRect();
     return (
       rect.top >= 0 &&
       rect.left >= 0 &&
       rect.bottom <= window.innerHeight &&
       rect.right <= window.innerWidth
     );
   }

5. Test user experience

   Pay particular attention to:

   • Scroll behavior impact

   • Page layout shifts

   • Mobile experience

   • Ad load time

Monetization Potential

Outstream CPMs typically range from $5-15, lower than instream but still significantly higher than standard display ads. Key factors affecting rates include:

• Placement quality (above-the-fold vs. below-the-fold)

• User engagement metrics

• Site quality and content vertical

• Buyer demand

Key Implementation Differences

When deciding between instream and outstream (or implementing both), consider these key differences:

1. Technical Complexity

Instream requires deeper technical integration with your video player and content management system. You'll need to handle events like:

• Content pausing during ad playback

• Error handling if ads fail to load

• Seamless transitions between ads and content

Outstream is generally simpler to implement since it doesn't interact with existing video content. However, it requires careful attention to page performance and layout stability.

2. User Experience Considerations

Instream has become an expected part of the video viewing experience for most users. However, excessive ad loads can drive viewers away, especially if:

• Pre-rolls are too long

• Mid-rolls interrupt at inappropriate moments

• Ad frequency is too high

Outstream can be more disruptive if not implemented thoughtfully, as users didn't explicitly initiate video playback. Best practices include:

• Clear labeling as advertising

• Easy closing mechanism

• Sound off by default

• Non-disruptive placement

3. Performance Metrics to Track

Different KPIs matter for each format:

Instream key metrics:

• Completion rate

• Skip rate

• Quartile completion (25%, 50%, 75%)

• Content abandonment rate

Outstream key metrics:

• Viewability rate

• Play rate

• Engagement (interactions with player)

• Page performance impact

Implementation Case Studies

Publisher A: News Site with Limited Video Content

A mid-sized news publisher was struggling to monetize effectively with limited video resources. They implemented an outstream strategy that included:

1. In-article placements between paragraphs

2. Sticky sidebar video units

3. "Read more" interstitial placement

Results:

• 40% increase in overall video revenue

• Minimal impact on user engagement metrics

• 2.5x higher CPMs compared to display ads

Publisher B: Video-First Entertainment Site

A entertainment site with abundant video content implemented a comprehensive instream strategy:

1. 6-second non-skippable pre-rolls for short content

2. 15-second skippable pre-rolls for longer content

3. Mid-roll breaks every 5 minutes

4. Post-roll ads with related content recommendations

Results:

• 70% completion rate on pre-rolls

• 85% revenue from pre-roll vs. 10% mid-roll and 5% post-roll

• Successful implementation of header bidding for video increased CPMs by 35%

Integration with Ad Tech Stack

Regardless of which video ad format you choose, integration with your existing ad tech stack is crucial for maximizing revenue.

Header Bidding for Video

Header bidding has transformed display advertising, and it's increasingly important for video as well. Implementation approaches include:

1. Client-side video header bidding

   Uses Prebid.js with video-specific adapters:

   // Example Prebid.js video configuration
   pbjs.addAdUnits({
     code: 'video-ad-unit',
     mediaTypes: {
       video: {
         context: 'instream', // or 'outstream'
         playerSize: [640, 480],
         mimes: ['video/mp4'],
         protocols: [2, 3, 5, 6]
       }
     },
     bids: [{
       bidder: 'appnexus',
       params: { placementId: 13232361 }
     }, {
       bidder: 'pubmatic',
       params: { adSlot: '1234567' }
     }]
   });

2. Server-side video header bidding

   Increasingly popular due to reduced latency concerns, especially for video. This approach leverages real-time bidding (RTB) infrastructure.

Google Ad Manager (GAM) Integration

Most publishers use Google Ad Manager for video trafficking. Key setup elements include:

1. Line item configuration

   • Set appropriate line item types (standard vs. sponsorship)

   • Configure frequency capping

   • Set targeting parameters

2. VAST creative setup

   • Upload VAST tags or use third-party tags

   • Set appropriate creative sizes

   • Configure companions if needed

3. Key-value targeting

   • Content category targeting

   • User segment targeting

   • Device and player targeting

Common Implementation Challenges

VAST Errors and Troubleshooting

VAST errors are the bane of video monetization. Common issues include:

• VAST Error 301: Timeout of VAST URI

• VAST Error 302: Wrapper limit reached

• VAST Error 303: No ads returned

• VAST Error 401: File not found

• VAST Error 402: Timeout

Troubleshooting typically involves:

1. Checking network requests

2. Verifying VAST tag syntax

3. Testing across different browsers and devices

4. Implementing proper fallback mechanisms

Mobile Considerations

Mobile presents unique challenges for video ads:

• Autoplay restrictions: iOS and Android have different autoplay policies that affect how video ads can function

• Bandwidth concerns: Consider adaptive bitrate for varying connection speeds

• Portrait vs. landscape: Format videos appropriately for device orientation

• Battery consumption: Excessive video can drain mobile batteries quickly

Privacy and Consent Management

With increasing privacy regulations, video ad implementation must account for:

• GDPR consent strings passed in ad requests

• CCPA compliance mechanisms

• TCF 2.0 framework integration

• Limited ad tracking accommodations

Making the Right Implementation Choice

Choosing between instream and outstream (or implementing both) should be based on:

1. Content Strategy

• Do you already produce video content?

• Are users coming to your site specifically for video?

• Is your content conducive to video interruptions?

2. Technical Resources

• Do you have developers who can handle video player integration?

• Can your infrastructure handle the bandwidth requirements?

• Do you have experience with VAST/VPAID implementation?

3. Monetization Goals

• Are you prioritizing revenue per page or user experience?

• Do you have direct sales capabilities for video?

• How important is programmatic demand?

Frequently Asked Questions

What yields higher CPMs: instream or outstream video ads?

Instream typically yields higher CPMs (often $10-25) compared to outstream ($5-15), but requires dedicated video content and specialized player implementation.

Can I implement both instream and outstream on the same site?

Absolutely! Many publishers use both formats strategically: instream where they have video content and outstream throughout the rest of their site.

How do I prevent video ads from slowing down my page?

For outstream, implement lazy loading so ads only load when near the viewport. For instream, consider using lightweight players and implementing appropriate preloading strategies.

What video ad standards should I support in 2025?

At minimum, support VAST 4.2 and VPAID 2.0, but be prepared for the transition to SIMID (Secure Interactive Media Interface Definition) which is replacing VPAID for interactive ads.

How can I maximize video ad viewability?

For instream, place video players prominently above the fold. For outstream, implement proper viewability detection to only play when in view, and consider sticky players that move with scrolling.

What's the optimal ad load for instream video without hurting user experience?

Research suggests pre-roll of 15 seconds or less plus one mid-roll every 3-5 minutes balances monetization and user experience for most content types.