What Are Video Ads?

What Are Video Ads?
Article by Bisera Stankovska
Last Updated: April 09, 2023

Video ads are the new black.

Their potential is almost unmeasurable, so much so that they have become an inseparable part of any PPC campaign. While the benefits of PPC are uncountable as it is, enhanced with video ads, your PPC efforts can reach new heights. 

But, video ads offer much more than boosting your PPC performance. 

From attracting larger audiences and building brand awareness to increasing sales, entertaining viewers, and creating a sense of intimacy between your brand and viewers, video ads bring a lot to the table. 

However, if you want a seat at the table, you have to know a few things.

Before you start creating video ads, you need to understand what they are and determine the best type for your business. 

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What Are Video Ads? 

Video ads have become the new way to advertise. They provide a way for brands to reach customers in a more entertaining and engaging format, especially when compared with traditional banner ads. 

Video ads can be used for marketing purposes, such as getting more eyeballs to your business or product.  However, given their entertainment appeal to all generations and people’s thirst to consume content, video ads are especially beneficial in building brand awareness and trust. 

The best thing about video ads is they don’t feel like ads at all.  Think Snickers’ “You’re Not You When You’re Hungry” advertising campaign featuring Betty White or Coca-Cola’s Christmas ads. 

We all remember Wix’s Super Bowl commercial ”It’s That Easy.” Just a heads up; Wix reported a 54% increase in revenue in the following three months. That’s the power of a popcorn-worthy video ad! 

No wonder video advertising has been the talk of the town for the last decade.

One of its main advantages is the ability to capture attention and hold it for longer than other forms of advertising, such as text or static images. This allows businesses to communicate their message more effectively and ensure potential customers are getting the information they need. 

Additionally, video advertising is highly shareable:

  • Videos on social media are shared 12 times more than links and text posts combined 
  • 92% of mobile video consumers share videos with others
  • On Linkedin, videos are shared 20 times more often and get 3x more engagement than other content formats

Types of Video Ads 

With so many businesses now using video advertising, you have to ensure your videos stand out from the crowd. 

Luckily, there are many ways to do this, such as using carefully crafted calls to action, interesting visuals, and engaging audio. 

But, the most effective strategy remains choosing the correct format for what you’re trying to advertise.

According to Google, you can choose from: 

  • Skippable in-stream ads that can be skipped after they appear, commonly in five seconds. They’re usually played before, during, or after other videos.  These ads are best used to generate sales, leads, and website traffic.  Moreover, they proved effective in building brand awareness and reach as well as product and brand consideration. 
  • 15 seconds (or less) of non-skippable in-stream ads play before, during, or after other videos. Rely on these ads to increase brand awareness and reach.
  • In-feed video ads are found in places of discovery such as next to related YouTube videos, on YouTube’s home page, or as part of a YouTube search result. They are shown as thumbnail images from your video. Brands use in-feed ads to promote product and brand consideration. 
  • Bumper ads are another type of non-skippable ads that play before, during, or after another video. They’re usually short (around six seconds) and deliver a memorable message to build brand awareness and reach. 
  • Outstream ads begin playing automatically, with the sound off.  They can be skippable and non-skippable and are only available on mobile. The beauty of outstream ads is that they help you expand the reach of your video ads almost effortlessly. 
  • Masthead ads are mostly used to drive eyeballs to a new product or service and are only available on a reservation basis. 
  • Google also offers ad groups, a set of two or more ads that share similar targets, so you can easily organize different types of ads to work together toward a common goal. 

On another note, Google’s classification of video ads doesn’t do justice to the broad spectrum of video formats available. Moreover, the ad types mentioned above appear only on YouTube and other websites and apps running on Google video partners. 

Commonly Used Video Ad Formats

Outside of Google’s realm, we can talk about many more types of videos ads, such as: 

Linear Ads

In the world of online advertising, linear video ads are a popular choice for many businesses. 

These ads are typically played before, during, or after a video clip, and they can be a great way to reach a wide audience. Linear video ads are often eye-catching and attention-grabbing, making them effective in promoting a product or service. 

Unlike traditional display ads, which are static and can be easily ignored, linear video ads are designed to capture the viewer's attention from the start. However, it’s important to remember that linear video ads must be relevant to the content of the surrounding video. If not, it will likely be skipped by viewers. 

Linear video ads should be short and to the point. Viewers have limited attention spans — 8 seconds to be exact — shorter than that of a goldfish.  Thanks to their effectiveness and ROI, it's easy to see why businesses of all sizes are increasingly turning to linear video ads.

Non-Linear Ads

If you've been on the internet for more than five minutes, you've probably seen a non-linear ad. These are the ads that pop up in the middle of articles or videos, overlapping with the content. 

Since they run all at once with the streaming video, they can be pretty annoying. On the bright side, they don’t interrupt the viewer’s watching experience by pausing their chosen content. 

Compared to linear ads, non-linear ads are often more effective as they deliver persistent onscreen presence. Plus, users can interact with them (click, minimize, etc.) 

They are usually less expensive than other types of advertising, so they can be a good option for businesses on a budget. 

If you're considering using non-linear ads, there are a few things to keep in mind: 

  • Ensure your ad is relevant to the content that it's interrupting. 
  • Don't overdo it — too many non-linear ads can quickly become irritating. 
  • Remember that not everyone will respond to your ad, but those who do may be more likely to take action.

Rewarded Video Ads

Rewarded video ads allow viewers to choose to watch the ad in exchange for a reward. The reward can be anything from an in-game bonus to a coupon or discount code. Rewarded videos are typically short, between 15 and 30 seconds, and can be very effective in getting people to take action. 

For example, a person who is offered an extra life for a game or a discount on a purchase is more likely to take action than someone who gets nothing in return. 

Rewarded video ads can be used to promote products, services, or even just brand awareness. These ads mostly target gamers. 

Native Ads

People are used to seeing videos online, and they’re more likely to pay attention to a video a static ad.  However, not all video ads are created equal.

Native video ads are designed to blend in with the surrounding content, usually appearing as part of a feed instead of as a pop-up. 

As a result, native video ads are less intrusive than other types of video ads. They’re more likely to be seen by people who are actually interested in the product or service being advertised. 

They are formatted for the platform hosting them, be it Facebook, Instagram, YouTube, Snapchat, TikTok, or any other app. 

As they deliver unparalleled engagement rates and given their non-intrusive nature, native ads are considered the future of advertising. 

More and more marketers adopt native advertising as their go-to advertising strategy because:

  • 47% of marketers across the globe believe in the effectiveness of native advertising 
  • 68% of internet users trust native ads seen in an editorial, while only 55% trust social media ads
  • Native ads increase the purchase intent by 18%

It’s no wonder native ad spend accounts for 84.1% of all video ad spend in the US in 2022 and is expected to reach $98.59 billion by 2023.

Shoppable Video Ads

Do you ever find yourself browsing social media and admiring a friend's new outfit...only to have no idea where to buy it?  Well, shoppable video ads are here to solve that problem! 

Shoppable video ads are a new type of online advertising that allows viewers to purchase the products they see in the video directly from the ad. This makes it easy and convenient for customers to find and buy the products they want, without even having to leave their social media feed. 

And for businesses, shoppable video ads provide a great way to showcase products and boost sales. 

So if you're looking to add a little convenience (and maybe some extra revenue!) to your social media campaigns, consider using shoppable video ads.

Video Ads Benefits

Video ads are a great way to engage and delight customers, but they also have some distinct advantages, such as: 

Increased Engagement

Video ads tend to be more engaging than other types of ads, such as text or image-based ads. 

This is because video ads are more visually stimulating and can hold viewers’ attention for longer periods. 

Additionally, video ads are often more memorable, which can lead to increased brand awareness and recall — 80% of users recall a video ad they’ve seen in the past 30 days.

Greater Reach

Video ads also have the potential to reach a wider audience than other types of ads. 

They can easily be shared on social media and other websites and be embedded in email newsletters and blog posts. 

As a result, video ads can help you reach new audiences that you may not have been able to reach through other marketing channels.

More Effective at Driving Sales

In addition to increasing engagement and reach, video ads are also more effective at driving sales.

Viewers are 17% more likely to make a purchase based on watching a video ad, than as a result of seeing a static ad. 

Higher ROI

Because video ads are more effective at driving sales and engagement, they also tend to have a higher return on investment (ROI) than other types of advertising. 

For instance, 80% of video marketers say they’re satisfied by the ROI of video ads they’ve run on social media platforms — and social media is just a drop in the ocean. 

We previously talked about Google Ads vs. Facebook Ads, but it turns out, 68% of marketers say the ROI of video ads is far better than the ROI of Google Ads. 

Increased Brand Awareness

Video advertising can also help build some buzz around your business. 

The logic here is simple: people are more likely to remember a video ad than a text or image-based ad. 

And since people are also more likely to share video ads with their friends and followers, it helps increase brand awareness even further.

Video Ads: Key Takeaways 

With almost three-quarters of consumers preferring videos over text ads, you don’t need us telling you how imperative video ads are in today’s competitive marketing world. 

Video advertising is more effective than other types of ads as it provides value for brands and advertisers alike.

Icing on the cake: a video ad is more likely to be watched in its entirety and can lead directly to a conversion!

The best part is, making video ads doesn’t have to be that complicated, but more on that next time!

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