A Digital Video Advertising Overview: IAB Platform Status Report
A Digital Video Advertising Overview: IAB Platform Status Report
A Digital Video Advertising Overview: IAB Platform Status Report
Table of Contents
Executive Summary: 3
Video Advertising Market Overview 3
Video Advertising Operating Ecosystem 4
Content Experiences 4
Metrics 9
General Business Overview of Video Advertising 10
Current Industry Challenges 10
Who is the IAB Digital Video Committee? 11
Appendix A: Definitions & Nomenclature 13
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Platform Status Report: DIGITAL VIDEO
Executive Summary:
The Digital Video Committee of the Interactive Advertising Bureau (IAB) is pleased to introduce the first in
a series of whitepapers committed to fostering a vigorous and healthy online video ecosystem with com-
monly adopted terminology, practices and standards.
This Overview report:
Provides an overview of the digital video advertising market,
Outlines multiple video ad formats by consolidating them into a macro framework,
Reviews the basic metrics behind video advertising,
Defines the basic economics of video advertising, and
Discusses key challenges that face the industry today.
Video advertising is one of the fastest-growing opportunities online today, as well as one of the most prom-
ising online advertising formats. The emotional draw of the television experience, consumers’ adoption
of broadband, and subsequent change in Internet content, capabilities, and consumption all contribute
to driving this growth. Despite the surge in interest in digital video by both the consumer and advertiser,
there are still many components of video advertising that are confusing, making the need for standards and
best practices essential.
In order to nurture and propel digital video advertising’s growth, the IAB and the members of its Digital
Video Committee are committed to identifying important standardization initiatives for video and to evan-
gelize online video advertising through awareness and outreach programs with the participation of all key
stakeholders.
Subsequent reports will address ad format standards, suggest best practices, and identify and implement
standards that will improve efficiency and enable a smoother buying experience.
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Platform Status Report: DIGITAL VIDEO
Aggregator / Distributors The multitude of vendors and publishers in the market make it unfea-
sible for all but the largest Portals to deal with a large enough num-
ber of videos to offer a wide variety of content to their consumers.
Aggregator/Distributors provide a solution by handling distribution
agreements with a large number of content publishers and providing
a “one stop shop” catalog of video content for Web Sites/Portals.
Ad Serving Technology Vendors A 3rd party technology vendor enlisted by the agency (or adver-
tiser) to manage their campaigns across multiple networks and web
properties.
Web Sites and Portals A Web site is, in this context, a venue on the Internet offering videos
to consumers. A Portal is a Web site offering a variety of services
to consumers, including videos and generally having a very large
number of users.
Advertising Networks In the context of this document, advertising networks function as
aggregators of video advertising inventory and enable publishers to
generate advertising revenue from their video content libraries or
other advertising inventory without a direct sales relationship to an
advertiser.
Measurement Firms Companies that analyze and report on various online metrics associ-
ated with campaign management and effectiveness.
Auditing Firms Firms that examine the technology and/or business processes of
companies aggregating and/or selling advertising to ensure transpar-
ency and trust within the media marketplace.
Research Firms Firms that report both publicly and privately on various aspects of
the media marketplace, including measurement of unique users,
frequency/traffic, impressions, etc.
Agencies Both interactive and traditional media buying firms participating in
the digital video marketplace.
Video Technology Providers There are several companies that provide encoding services and
player technologies to publishers and networks, enabling video and
advertising content throughout the ecosystem.
Content Experiences
With tens of millions of videos available online today and millions being added each month, consumers can
view videos never before accessible through traditional mediums like television. Consumers can effort-
lessly go from watching a professionally produced television show to a 10-second clip of a friend describing
their first year away at college. Although this universe of content is broad and varied, the disparity of video
content can be classified into three main areas:
Premier Programming: gives users professionally produced content, generally, re-purposed from
Broadcast Video and Cable Networks. There is a large amount of professionally produced video
that has not been digitized but is quickly working its way online.
Professionally-Generated Specialty Programming: video content professionally but generally
created for a specific subset of online video consumers. Whether it is original content for the web
or content from traditional media like local news or community events, consumers are searching for
and consuming video content relevant to their micro interests.
User-Generated Video: consists of clips created and uploaded by everyday people and make up
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Platform Status Report: DIGITAL VIDEO
the largest volume of videos available online. Generally, the majority of these clips are watched by
a small group of users but due to viral word-of-mouth messaging some become extremely popular
and are viewed by millions.
While these categories may vary in production quality, time length, and resolution, consumers are drawn to
each category for different reasons and a variety of video ad products have been developed to best fit each
of these different experiences. See the Video Ad Product Compendium section below for more informa-
tion.
Due to the fact that In-Banner video advertising and In-Text is generally tracked and operationally support-
ed as a rich media advertisement, the major focus of this document will be on In-Stream Video advertising.
While these three video ad types currently make up the majority of video ad inventory, there are other
available methods of triggering a video ad experience, including brand integration like sponsorships and
branded content. Another area of innovation in video advertising is to advertise entirely outside of the
1 The 2006 Broadband Video Commercial spec can be found at:
http://www.iab.net/iab_products_and_industry_services/1421/1443/1479
2 IAB UAP Ad Sizes can be found at:
http://iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/4631
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Platform Status Report: DIGITAL VIDEO
video all together, or within the perimeter of the video, leaving the video stream ad-free – this practice is
generally referred to as an advertising “skin.” In-Text video advertising is similar in that it does not require
video content to deliver a video ad. In-Text video highlights words and phrases within the text of web con-
tent and links the word to a relevant video advertisement. See Example 3 in the Video Examples section
below.
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Platform Status Report: DIGITAL VIDEO
Example 1:
In-Stream Video Ad Example
In MSN’s Video Player example to the
right, a Linear video ad plays before the
video content and is accompanied by a
clickable, expanding 300 X 250 display
companion ad product.
Example 2:
In-Stream Video Ad with Skin
In this example by Heavy, a
1020(w) x 620(h) ad unit surrounds a
video for the duration of the program
and actually becomes part of the
viewing experience.
Source: Heavy
Example 3:
In-Text Video Ad Example
Vibrant Media’s screenshot to the right
shows a user mousing over a relevant
word which triggers a relevant video
advertisement.
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Platform Status Report: DIGITAL VIDEO
Example 4:
In-Stream Video Ad Overlay
This screenshot depicts a non-linear
overlay ad product in an original show.
The advertiser is MacDonald’s in a
Broadband Enterprises production “The
Fantastic Two”
Example 5:
In-Stream Video Ad Overlay
In this screenshot, Yahoo! offers a
non-linear overlay that is triggered
by the user mousing over the video
advertisement content. This overlay
communicates a call to action to the
user.
Source: Yahoo!
Example 6:
In-Stream Video Ad Overlay
This screenshot illustrates a non-linear
overlay ad format with an accompanying
companion ad to the right of the video.
Source: YouTube
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Platform Status Report: DIGITAL VIDEO
Term Description
Broadband Video Commercial The IAB’s 2006 definition of a video ad as a commercial that may ap-
pear before, during, and or after a variety of content including stream-
ing video, animation, gaming, and music video content in a player
environment. These commercials are generally :15 and :30 video ads
that run before , between, and after a video clip is shown. The 2008
IAB Digital Video Committee is renaming Broadband Video Commer-
cials as “In-Stream Video” ads that are either “Linear” or “Non-linear”
core video products.
Video Ad Experience A term used to describe where the source of the video advertising
experience is coming from. This document describes three video ad
experiences; In-Stream In-Banner, and In-Text.
In-Stream Video A video ad experiences either viewed within or around video content
(In-Stream) from a video player, like a browser, or client
In-Banner Video A video ad experience displayed or triggered within a display banner
like an IAB Universal Ad Package (UAP) size like a 300 X 250 or a 768 X
90.
In-Text Video A relevant video ad experience displayed only when a user chooses
to mouse-over, a highlighted word or phrase within the text of web
content..
Core video ad products The root ad product that serves as the source or core ad that compli-
ments the video ad experience.
Linear video ads A Linear Video ad is experienced In-Stream, which is presented before,
between, or after the video content is consumed by the user. One of
the key characteristics of Linear video ads is the ad takes over the full
view of the video
Non-linear video ads A Non-linear Video ad product runs parallel to the video content so the
user still has the option of viewing the content. Common Non-linear
ad products include overlays which are shown directly over the content
video itself, and product placements which are ads placed within the
video content itself. Non-linear video ads can be delivered as text,
graphical banners or buttons, or as video overlays.
Ad Placements The physical location or placement of the ad product or experience.
Pre roll A Linear video spot that appears before the video content plays.
Mid roll A Linear video spot that appears in the middle of the video content.
Post roll A Linear video spot that appears after the video content completes.
Companion ad products Both Linear and Non-linear ad products have the option of pairing their
core video ad product with what is commonly referred to as companion
ads. Companion ads are commonly text, display ads, rich media, or
skins that wrap around the video experience, can run alongside either
or both the video or ad content. The primary purpose of the Compan-
ion Ad product is to offer sustained visibility of the sponsor throughout
the video content experience. Companion Ads may offer click-through
interactivity and rich media experiences such as expansion of the ad for
further engagement opportunities.
Rich Media Advertisements with which users can interact (as opposed to solely
animation) in a web-page format. They may appear in ad formats such
as banners and buttons, as well as transitionals (interstitials) and various
over-the-page units such as floating ads, page take-overs, and tear
backs.
Skins The ads that are placed around the video experience perimeter, com-
monly placed in the shell of the video player.
Metrics
The core metric used for currency in digital video advertising is a “Digital Video Ad Impression”, also
referred to as a Broadband Video Commercial Impression as described in the IAB’s Broadband Video Com-
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Platform Status Report: DIGITAL VIDEO
Challenge Description
3rd party ad serving not always Many publishers with In-Stream video ad products do not support
supported third party ad serving into their video players at this time.
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Platform Status Report: DIGITAL VIDEO
Challenge Description
Video ad length effectiveness Since the majority of ads are repurposed television :15 and :30’s,
not well understood there has been limited opportunity to research and experiment with
different ad lengths online. Different serving environments may need
different ad lengths to be most effective.
Reporting discrepancies There can be reporting discrepancies between 3rd party ad servers,
publishers, and 3rd party video vendors making the billing and recon-
ciliation process sometimes confusing for media buyers.
Online buying not similar to TV While TV buys typically consist of placing :30 or :60 spots in a uniform
buying environment, online buys require a broad understanding of multiple
ad experiences, different video integrations on websites/portals, net-
work differentiation and a more engaged, one-to-one user relation-
ship.
Many different video ad Media buyers have expressed confusion over the plethora of formats
products available available in different video consumption experiences, including differ-
ences such as features, video sizes, etc.
Different video player There is no standard technology to serve and enable video content
technologies or advertising. Current player technologies include Adobe Flash,
Windows Media Player, Quicktime, and RealPlayer.
Attribution of metrics and Because of networks and ad platforms’ distributed nature, there is
viewers debate within the industry on how best to attribute a viewer from a
reporting perspective. For instance, if a video is shown on a website
through a network feed, does the website get attributed the viewer
or the network or both?
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Platform Status Report: DIGITAL VIDEO
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Platform Status Report: DIGITAL VIDEO
Invitation unit – a smallish still or animated graphic often overlays directly onto video content. Typically
used as a less-intrusive initial call-to-action. Normally when a viewer clicks or interacts with the invitation
graphic, they expand into the ad’s full expression, which might be a simple auto-play video or an interactive
experience
IPTV – generally refers to video programming offered by telecom companies over copper wire. Often mis-
used to refer to PC-based video.
Journalistic Video – content that was shot and used by the actual publisher. MSNBC journalist shooting a
video and using the video for their own purposes.
Linear Video Ads – experienced In-Stream, which is presented before, between, or after the video content
is consumed by the user. One of the key characteristics of Linear video ads is the ad takes over the full view
of the video.
Metadata – business-critical data such as advertiser name, eCPM goal, format and version information.
Mid-roll – a Linear video spot that appears in the middle of the video content.
Non-linear Video Ads – an Non-linear Video ad product runs parallel to the video content so the user
still has the option of viewing the content. Common Non-linear ad products include overlays which are
shown directly over the content video itself, and product placements which are ads placed within the video
content itself. Non-linear video ads can be delivered as text, graphical banners or buttons, or as video
overlays.
Overlay ad – a banner ad that appears in the bottom 20% of the video window. Click action initiates a
Linear video spot or takes the user to a website. Sold on a CPM and CPC basis.
Playlist – online video content can be broken down by content verticals such as news, music, tv shows,
movies, sports, UGC, casual games, automotive, travel, business, b to b, careers, communities, technology,
education, directories, government, non-profit, family, health, real estate, personals, science, adult and
gambling. There are hundreds of sub-content verticals under the aforementioned.
Post-roll – a Linear video spot that appears after the video content completes.
Pre-roll – a Linear video spot that appears before the video content plays
Quartile reporting – refers to whether the video played to its 25% and 75% points.
Replays – refers to the number of times a user requested to see the video ad again (where available)
Rich media – advertisements with which users can interact (as opposed to solely animation) in a web-page
format. They may appear in ad formats such as banners and buttons, as well as transitionals (interstitials)
and various over-the-page units such as floating ads, page take-overs, and tear backs.
Sourced Video – content generated by a third party (typically professional) and will denote the source. An
example may be a new car review provided by General Motors but hosted on CarTV.com.
Syndicated Video – content sourced from a professional third party, examples may include syndicated
television shows, news footage from AP or Reuters, etc.
Sponsorship graphics – components that are displayed as very persistent graphics such as with a player
surrounding skin. Sponsorship graphics are generally displayed throughout the entirety of the content play.
Sometimes the sponsorship graphic remains interactive and will behave like an invitation unit allowing
viewers to explore deeper ad units such as the embedded interactive.
User-Generated Video – content created by the public at large and directly loaded to a site like YouTube
or MySpace
VOD – Video on Demand, usually refers to services offered by cable companies through set-top boxes.
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