Among 10 options, the 5 most effective types of video advertising are:in-stream, out-stream, native, social media, and interactive ads.
Sometimes, to catch LOCAL EYEs, content that reel-y films the gap is your smartest bet.
You may have produced a blockbuster-level video for your business. Yet, it sits in the dark; waiting for just 1 view.
But why target a single view when you can have billions? The only missing piece for your success is your video marketing approach. It needs a good boost.
Most brands realized it already.
95% of marketers even call it an important part of their strategy. [Source: Dash]
For this, you have to shop for the most efficient video advertising type! Then again– which one works best for your brand?
Let’s get you some ADvice.
The Power of Video Advertising in the Digital Age
Video advertisement takes your marketing up a notch. It blends striking visuals, complementing sound, and dynamic motion to pull people’s attention.
But why does video work?
Here’s the importance of video marketing you must know!
Elevated Engagement Rate
The content gets 1200% more shares on social media than other formats. [Source: G2].
This shows how engaging it is.
By engagement, we mean how much someone interacts with your video ad.
Factors like visuals, music, and creativity work here. They stimulate your target group to connect with the content.
Engaged viewers can lead to more comments, shares, or click-through rates (CTR).
Higher Retention Rate
Is there any ad you saw ages ago but still remember? This is what the power of video advertising is.
Retention is all about how well viewers or customers remember your brand after viewing your ad.
Stats by Forbes say that—
- 95% of a message stays with the viewer when it’s conveyed through video.
This means that when you use video advertising, you create lasting impressions. It can even turn casual viewers into loyal customers.
Then again, it all depends on how creative the ad is.
For example,
The famous “Shave time. Shave money” slogan from Dollar Shave Club is easy to remember! Because it’s witty and catchy.
Climb In Conversion Rates
To make sales, conversion rates matter.
Adding content on your landing page can shoot conversions up to 80%. [Source: SalesLion]
Even if it’s your marketing videos for business!
Why does this happen? Because videos explain your products or services with creativity.
They add a fun and positive vibe while keeping the concept, message, and CTA simple.
This helps potential customers quickly understand what you’re offering.
Plus, most ads have some relevance to the main content viewers watch. This can be a motivating factor for purchase.
How Do Algorithms Favor Video Ads on YouTube, Facebook, and TikTok?
Algorithms track user behavior.
This includes: what videos they watch, how long they stay, and whether they replay.
It helps platforms show more relevant video ads tailored to individual tastes.
Big social platforms like YouTube, Facebook, and TikTok have special algorithms that boost video content!
They bring perks like:
Increasing Visibility
Algorithms prioritize videos with higher engagement such as likes, comments, and shares.
This is more common on platforms like Facebook and Instagram. The more engagement, the higher the visibility.
Displaying It More
Platforms like YouTube measure how long viewers watch.
Longer watch times signal to the algorithm that users find the content interesting. This triggers it to display your ads more.
Featuring Trend-based Ads
TikTok’s algorithms promote viral trends.
Video ads that use such trends are more likely to be featured. Result: reaching wider audiences.
Comparing Video Ads vs. Text-Based Ads & Image Ads
| Factor | Video ads | Text ads | Image ads |
| Engagement Rate | High | Low | Decent |
| Retention Rate | |||
| Conversion Rate | |||
| Shareability | |||
| Viewing Time | 5 sec to 3 min. | 10-15 sec | 15-30 sec |
| Brand Recall | Lasting impression | Forgettable | Memorable if well-designed |
| Audience Reach | Broader reach | Wider | Good reach |
| Production Cost | Costlier | Budget-friendly | Moderate |
Types Of Videos Used In Advertising
- Explainer
- Product Demos
- Testimonial and Review
- Brand Video
- Service Video
- Educational & How-To Videos
- Interactive Video
What Makes a Video Ad Effective?
Storytelling
Stories hook viewers.
It has an emotional appeal that works for people. Videos may adopt a variety of storytelling techniques. The variation triggers different emotions.
Check out any of the video marketing examples. You may find some happy moments, struggles, adventures, or worries in the ad.
This helps keep viewers engaged and allows them to connect with your business.
Visual Appeal
Most viewers are into visuals.
High-quality, eye-catching video ads can grab people’s attention instantly. The hook factors can be the product presentation, the acting of actors, or the background.
Moreover, professional and polished-looking videos build trust and credibility.
Call-to-Action (CTA)
A CTA guides viewers on what to do next.
It has to be clear and catchy to ensure people take action.
Be it “Shop Now” or “Get 20% off,” effective CTAs can significantly increase conversion rates.
10 Most Effective Types of Video Advertising
1. In-stream Video Ads
One of the most familiar types of video.
In-stream ads are short, snappy video advertising placed within the content.
They play before (pre-roll ad), during (mid-roll ad), or after (post-roll ad) the main video. This sums up the 3 types of in-stream ads.
The ads can be skippable or non-skippable.
You find them usually on platforms like YouTube or Facebook.
Length
5 to 120 seconds based on type and platform. However, the 5-15 seconds range is the sweet spot.
Why It Matters For Business
- Decent recall rates: Around 65% of viewers recall seeing a pre-roll in-stream ad. [Source: Neilsen report]
- Engagement: Engage viewers who are already invested in the main video. By disrupting the content, it quickly draws their attention.
- Wider reach: Target lookalike audiences that share similar characteristics and global viewers.
2. Out-stream Video Ads
Out of the traditional video players.
Outstream ads are versatile video advertising that pops up in a non-video atmosphere. It includes articles, social media feeds, and websites.
They appear as in-page, in-text, and in-banner formats mostly. In-page ads show up within webpage screen.
In-text is placed inline within text paragraphs. In-banner stays at the top, bottom, or side of a banner.
Such a type is usually autoplay and silent as someone views, pauses, or scrolls past the site. It engages viewers only when they click to turn on the sound.
Length
15 to 60 seconds where 15-30 seconds work most effectively.
Why It Matters For Business
- Viewability: Get up to 100% view-through rate. Because it only plays when viewed on a site’s screen. The ad even pauses until that user scrolls back. For example, LADbible Group saw 86% VTR.
- Flexibility: Mobile-friendly and adapts to different placements on websites for maximum exposure.
- Brand Awareness: Help expand reach beyond video players. This leads to increased brand awareness.
3. Native Video Ads
Camouflage one.
Native ads are video advertisements that blend naturally with the content and act as a part of it. This makes the ads less intrusive.
It’s a paid piece of customizable content. You may find them as sponsored content. They’re common on vlogs, content creator’s channels, social media networks, and news sources.
Mostly, the host of the content promotes the product or service. That’s a native video ad.
Length
15 seconds on average but can go up to 60 seconds.
Why It Matters For Business
- Contextual Relevance: Often remains relevant to the main content. So, it aligns with the viewers’ interest and reading context.
- Engagement: If the creator features your ad creatively, it keeps viewers hooked better.
- Viewability: Ensures decent VTR since it works as a part of the main content. A Sharethrough/IPG Media Labs survey mentions that 53% are more likely to view them than display ads.
4. Social Media Video Ads
Shorter content for specific mediums.
A social media ad is a short clip that advertises products or services on social platforms. They’re particularly designed for channels like Instagram, Facebook, Twitter, or TikTok.
You place it mostly in: news feeds, between posts, in articles, and mobile apps.
The ad format can be unique depending on the platform. They can act as in-feed ads, stories, or sponsored content.
Length
6 seconds to a minute based on the platform. However, the 6-30 seconds range is most efficient.
Why It Matters For Business
- Wider Reach: Around 64% of the world’s population are social media users, as per Statista. So, it connects with a giant global audience.
- Fast Consumption: Delivers message in short formats. This makes it easy and quick for viewers to consume the ad.
- High Engagement: The versatile, eye-catching visual, and precise factor make it highly engaging.
5. Masthead ads
A premium format.
Masthead video ads are non-skippable video advertising content occupying the top of a platform’s homepage. Call it one of the types of video ads on YouTube.
You find them in a big, eye-catching space. They can appear in a widescreen format or 16:9 aspect ratio.
Such ads play automatically without sound. After autoplay, the main video defaults to the video thumbnail.
These ads are more used on popular websites.
Length
15 to 30 seconds or more. They often loop or autoplay.
Why It Matters For Business
- Maximum Exposure: Captures attention on platform homepages all day long. Plus, they’re the first thing individuals see when visiting a site.
- Brand Awareness: Because they stick to the prominent spot of a page, it helps catch attention and raise awareness. Perfect for launches and major promotions to broad audiences.
- High Recall Rate: The placement works here. As per a Google stat, it can boost ad recall by up to 92%.
6. Over-the-top Video Ads
Types of commercials on TV.
Over-the-top or OTT ads are full-screen video advertisements. They pop up on streaming services and devices. YouTube, Hulu, and Amazon Fire TV are common examples.
The ads typically appear during a viewer’s: movie, TV show, or other content like brand videos, explainers, or documentaries.
Advertisers can make the most of such ads with granular OTT data. It provides detailed info regarding: user demographics, interests, and behaviors.
So, such ads can hyper-target specific audiences and reach them with personalized content.
Length
15 to 30 seconds work great but can go up to 60 seconds.
Why It Matters For Business
- Targeted Reach: Allows precise targeting based on OTT audience data with personalized ads that hit right.
- Dynamic Audience: The OTT platform has around 3920m users, as per Statista. So, the ad can reach new and dynamic viewers. More viewers mean more engagement.
- Viewing Experience: Since it stays in full form and is adaptable to different devices (not just TV), humans will have a pleasant viewing experience.
7. Overlay Video Ads
Slightly see-through.
Overlay ads are semi-transparent video advertising. They usually pop up over video content and web pages to promote products or services.
The ads often take up to bottom 20% of the video while some can appear on top. One distinct factor of such content is that it lets viewers still see the main video underneath if played.
After the ad plays for the minimum time set, it collapses to a much smaller size. Once viewers close the ad, it disappears from the bottom.
Length
Stays as long as the video plays unless closed by viewers.
Why It Matters For Business
- Less Disruptive: The semi-transparent factor allows viewers to continue enjoying the main content while viewing the ad.
- Viewability: Because it stays consistently in the video, there’s a high chance viewers will notice it.
- Brand Awareness: The constant placement of the ad in the video can help boost brand awareness.
8. Linear Video Ads
Ad breaks.
Linear video ads are a type of in-stream TV ads but run sequentially with the main video. They fill the entire screen and act as short breaks.
The ads can pop up during– pre-roll, mid-roll, and/or post-roll.
They’re typically non-skippable for a certain duration. It ensures that viewers see the message.
This kind of video is more common in TV and streaming services. However, you can find them on social media platforms too.
Length
The best range is 15 to 30 seconds but they can be longer.
Why It Matters For Business
- Familiarity: Mimics traditional TV ads. This helps brands connect with the audience through the nostalgia factor that can result in boosted recognition.
- Memorable: Because they take up the full screen, it makes the ads more memorable. Plus, the ads are mostly narration-based. Research mentions that stories engage vital brain parts that naturally trigger people to remember them.
- Drive sales: The narration, emotional approach, CTA, and right placement in the video can influence purchase decisions and drive sales.
9. Interactive Video Ads
The latest kind of digital ad.
Interactive video ads are those that have interactive graphic elements to let viewers engage with.
This content can include: clickable buttons, tags, quizzes, games, polls, or animations that respond to viewers’ actions.
One common example is Shoppable video ads.
The ads can come in different forms. Viewers can choose different paths in the story of content, learn more about a product, or play a mini-game.
You may find the most on social media platforms like: Facebook, Instagram, and TikTok.
However, some brands are also using it on their websites.
These ads can pop up before, during, or after the video. So, it’s a kind of in-stream. They can be skippable or non-skippable.
Length
20 to 90 seconds but can vary widely based on the goal.
Why It Matters For Business
- Viewability: Because of the interactive elements, it can lead to a whopping 94% climb in views. [Source: Storyly]
- Tailored Factor: Through interactive elements, individuals have a more personalized experience. This makes the ad more memorable.
- High Engagement: The CTA and elements work to boost active viewer participation and engagement. They trigger individuals to take an action that can increase sales.
10. 360-degree and Virtual Reality Ads
Innovative ad formats.
Both 360-degree and Virtual Reality ads are immersive video advertising. They can create more engaging experiences for users than traditional counterparts.
360-degree content lets viewers explore a video from all angles. Meanwhile, VR ads place them in a virtual setting where they interact with the content through elements.
They’re popular on social media platforms like:
- Facebook, Instagram, YouTube, and Twitter.
Length
Range from 30 seconds to 2 minutes depending on content depth.
Why It Matters For Business
- High Recall Rates: The immersive experience helps make the ad more memorable for viewers. A study highlights that 70% can remember the ad after checking it out.
- Innovation Appeal: Its unique factor and content diversity hooks viewers from the get-go. It attracts attention through advanced tech and enhances brand perception.
- Increased Sales: Brands can show products differently and easily attract target groups. This leads to a climb in conversion rate and revenue.
Video Advertising Strategies That Drive ROI
What Are The 5 Main Strategies Of Digital Marketing And How Does Video Fit In?
Content Marketing
Videos can act as a precious treasure. For instance– product demos, testimonials, and tutorials. They build trust and authority.
SEO
Videos with SEO strategies can improve your website’s search visibility. Adding video descriptions, meta tags, and subtitles can help improve rankings on SERP.
Social Media Marketing
Sharing videos on social media channels can spark reactions, likes, comments, and conversations.
Email Marketing
Adding videos to email campaigns can boost open rates by up to 19% and CTR by about 65%! [Source: Campaign Monitor]
Paid Advertising
Invest in video ads through platforms like Facebook or Google. You can easily reach the target market with it and achieve positive results.
Using Data and A/B Testing to Improve Video Ad Performance
- Establish clear objectives: for the video ad.
- Divide your audience: into distinct groups for targeted testing.
- Create different versions: of the video ad.
- Determine KPIs and metrics: to measure success.
- Run A/B Tests simultaneously: to see which performs better in real time.
- Analyze data: to identify which ad resonated more with the audience.
- Make adjustments: to continually optimize based on findings and retest.
- Scale success: for maximum impact.
How to Choose the Best Video Ad Type for Your Business?
Budget
Assess how much you can invest. Some formats can be pricier than the other.
Usually, the cost range of:
- Video Production is:$5,000 to $200,000+
- Ad Production is:$100 to $50,000+
It depends on the content complexity, who you’re hiring, and other factors.
Audience
Know your target market. Who are they?
It can be—
- Consumers, Businessowners, Retailers, Distributors, Influencers, Local Communities, or Employees.
Understanding it can direct you to where and how you should feature your video ads.
Platforms
Evaluate what platforms your TG uses the most. Then create the content.
Note that different platforms are suitable for varying types of commercial advertising.
For example:
The Future of Video Advertising (What’s Next?)
Predictions & Trends for 2025
- More sophisticated algorithms and hyper-personalized video ads.
- Interactive and immersive experiences with advanced AR and VR technologies.
- Short-Form video dominance.
- Sustainability and ethical storytelling.
- Experimental AI-generated bespoke content.
Frequently Asked Questions (FAQs)
Simple a kind of brand promotion. Video marketing means using video content to promote products/services and inform the audience about them.
Among several options, the 5 types of video ads are: in-stream, out-stream, native, social media, and interactive ads.
Here’s your list of 8 types of digital advertising. Social media ads, in-stream, out-stream, interactive, native, content marketing, influencer marketing, and display ads.
In-Stream Ads and Search-Triggered Video Ads. These two formats target customers who are already showing interest. It makes them effective for boosting consideration.
The mix and match. Try different kinds of advertising for your business that matches your requirements. However, picking the best one varies based on your goals, budget, and target audience.
Lots of stuff. In a promotional video, you may find info related to the product features, benefits, how it works, why you should have it, visuals, testimonials, and a clear CTA.
Founder at LocalEyes Video Production | Inc. 5000 CEO | Emmy Award Winning Producer
