What is the purpose of the IAB Video Ad Classification Update?

The meaning of instream and outstream video advertisements has changed with the introduction of a revised set of specifications for video ads by the Interactive Advertising Bureau (IAB) Tech Lab.

This upgrade will influence billions of dollars worth of advertising budgets and income to increase openness over the purchasing and selling of video ads.

Let’s have a quick review of what the update is.

Before the update, the definitions were rather straightforward:

Pre-roll, mid-roll, and post-roll advertisements that are played within already-existing material are known as instream video commercials. While advertising that was played separately and unrelated to already-existing material was referred to as outstream video advertising.

However those 2 categories are not detailed enough to define the ad format, the IAB has to reorganize the ad units into four categories: instream, accompanying content, no content/standalone, and interstitial.

Let’s get more detailed:

Instream
This category, like the preceding description, comprises video advertisements that appear before, during, or after the main video content in the context of a video player. Instream advertisements should always be set to "sound on." Additionally, they must show a "clearly expressed intention to watch the video."

Accompanying Content
Pre-roll, mid-roll, and post-roll advertising are also served by accompanying content, much as instream. On the other hand, supporting content is positioned within editorial content and starts to play as soon as it enters the user's viewport. Both "sound-on" and explicit user intent are not necessary to view the video ad.

No Content/Standalone
Video advertisements without any substance are included in this category. Put more simply, they are just video players that display advertisements and don't have any other content.

Interstitial

Online full-screen video advertisements fall under the interstitial category.

What is the purpose of the IAB Video Ad Classification Update?

To guarantee that advertisers are receiving the full value of their ad purchase, the IAB has released an upgrade.

One of the most beneficial ad forms for marketers is instream advertising. Indeed, they are prepared to pay bid rates for instream advertising that are up to 50% higher.

Nonetheless, there were instances where marketers were paying for instream advertising to be shown in tiny, muted players in the bottom corner of the screen because of the vague definition of instream commercials.

This led to confusion and a grey area around instream adverts and what exactly publishers and advertisers are paying for.

How does the New IAB Video Classification impact publishers?

After these updates, DSPs are not placing bids on inventory that does not follow the IAB's revised classification.

This implies that publishers that choose not to implement the new adjustments will forfeit significant ad revenue.

The other impact is that publishers must now sell their inventory of video ads more strategically.

Comprehending the new video formats will greatly influence the CPMs for different kinds of ad inventory, necessitating a price review by publishers. SSPs have been sluggish to convert, but publishers should pick up the pace throughout the migration phase as DSPs commit to the new classification. A reputable and trustworthy monetization company is one approach to make sure you are optimizing your video ad revenue potential.

The new Instream strategy helps publishers and creators by reaching a ready-watching audience with video content and giving advertisers access to premium placements for better user experiences.

With years of experience specifically with video advertisements, Ampliffy knows how to take advantage of greater prices for each ad.

Please contact us right now to discuss how we can assist you adapt to the New IAB Video Classification Updates.