Online Video Advertising Formats - Should You Use Overlays Or Pre-Rolls?

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Advertisers spend just a fraction of their expenditure on video advertising, even when millions watch online video ads every day. However, due to ad inventory and audience exploding on sites like YouTube, the business concept for online video advertising is starting to emerge.

Also, video ads are emerging because of the standard advertising guidelines that were created by the IAB (Internet Advertising Bureau) that unifies all advertisers worldwide. Not to mention, YouTube who receives millions of hits per day.

The debate for the better format between pre-roll or overlay is still ongoing and nowhere near an answer. Here are the facts:

- Short clips work better with interactive overlays that are "non-interruptive" while longer clips work best with pre-rolls.

- Media consultants think that "pre-roll is dying" and "overlays are an improvement".

- Overlays target audiences based on the videos they watch - they sell to one viewer at a time.

Both are effective and are widely used. Short one-minute videos, like that of infomercials and TV ads, are sometimes more effective than big-budget commercials you sometimes see on TV. But, low-budget or not, making videos still cost money.
Advertisers still "cringe" at the idea of investing even as little as 10% on online video advertising, even though they spend millions of dollars in TV ads without any concrete way of measuring its effectiveness. Not to say that TV ads are not effective - they are, but online video advertising is just as effective and you have your number of hits to prove it.

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