Video Advertising Trends 2024: What Publishers Need to Know

Video advertising continues to dominate digital marketing budgets, with spending projected to reach $120 billion globally in 2024. For publishers, this represents a massive opportunity to capture premium CPM rates. Understanding the latest trends and technologies is essential for maximizing video ad revenue.

The State of Video Advertising

Video now accounts for over 50% of all digital ad spend. Advertisers are willing to pay premium rates for video inventory because of its proven effectiveness in driving brand awareness and conversions.

Key Video Ad Formats

1. In-Stream Video Ads

These ads play within video content:

• Pre-roll: Before the main video content
• Mid-roll: During the video (for longer content)
• Post-roll: After the video ends

2. Out-Stream Video Ads

Video ads that play outside of video content, typically within article pages. These are particularly valuable for publishers without video content, allowing them to access video ad budgets.

3. Rewarded Video

Users choose to watch video ads in exchange for rewards (common in gaming). These have extremely high completion rates and engagement.

4. Shoppable Video

Interactive video ads that allow users to purchase products directly from the video. Growing rapidly in e-commerce.

Understanding VAST and VPAID

VAST (Video Ad Serving Template)

VAST is the industry standard for serving video ads. It defines how video players communicate with ad servers, ensuring compatibility across platforms.

VPAID (Video Player Ad Interface Definition)

VPAID extends VAST by enabling interactive video ads. It allows for features like clickable elements, forms, and games within video ads.

Trends Shaping Video Advertising

1. Connected TV (CTV) Growth

CTV advertising is exploding as more viewers shift from traditional TV to streaming. Publishers with CTV inventory can command premium rates.

2. Short-Form Video

Influenced by TikTok and Instagram Reels, short-form video ads (6-15 seconds) are becoming more popular for their high completion rates.

3. Vertical Video

Mobile-first vertical video formats are essential as mobile viewing continues to dominate. Ensure your video player supports vertical formats.

4. Programmatic Video

Automated buying and selling of video inventory through real-time bidding is becoming the norm, offering efficiency and scale.

5. Contextual Targeting

With privacy changes limiting behavioral targeting, contextual targeting based on video content is gaining importance.

Maximizing Video Ad Revenue

For Publishers with Video Content

• Implement header bidding for video to maximize competition
• Use mid-roll ads for content over 8 minutes
• Optimize video player for viewability
• Consider sticky video players for higher completion rates

For Publishers without Video Content

• Implement outstream video units
• Use in-article video players
• Consider creating video content to access pre-roll budgets
• Test different outstream placements for optimal performance

Video Ad Best Practices

Viewability Optimization

Video viewability is crucial for premium rates:

• Place video players above the fold when possible
• Use lazy loading to improve page performance
• Implement sticky players that follow scroll
• Ensure autoplay with sound-off for better UX

User Experience Considerations

• Don't autoplay with sound
• Provide skip options for longer ads
• Limit ad frequency to avoid fatigue
• Ensure fast loading times

Measuring Video Ad Performance

Key metrics to track:

• Completion rate: Percentage of ads watched to completion
• Viewability: Percentage of ads that meet viewability standards
• CPM/CPCV: Revenue per thousand impressions or completed views
• Fill rate: Percentage of video ad requests filled

Conclusion

Video advertising offers the highest CPM rates in digital advertising. By staying current with trends, implementing the right formats, and optimizing for viewability and user experience, publishers can significantly increase their revenue from video inventory.