The IAB Tech Lab updated its Video Ad Format guidelines in August 2022 to better differentiate between in-stream and out-stream video ad placements. These placements dictated where advertisements could be played on videos within a publishers site, which in turn dictated what they were worth. For example, a pre-roll ad -- an ad that played prior to a video playing on a publisher's website -- demanded about 10 times the price advertisers would pay.  These rates were in the same ballpark as Youtube’s “True view” ads, which also play before a video runs.

Let's get into the details below.

IAB’s Revised Video Ad Standards: An Overview

IAB’s revised standards have redefined the classifications of video ads, particularly distinguishing between instream and outstream ads. Instream ads require sound-on by default and explicit viewer intent, while Accompanying Content ads can start automatically without sound within editorial content. Here are the key factors:

  1. Dual Classification for Instream Video: Videos can be classified as instream either if they have auto sound-on (subject to browser support) or if there is clear user intent to watch the video, particularly if the video content is the main focus and matches the user-requested topic.

  2. Consumer-Centric Guidelines: The new guidelines emphasize user intent. For instance, a video that matches the subject of the page but plays without prior declaration is considered Accompanying Content, and user actions like clicking on a video link indicate instream intent.

  3. Introducing Accompanying Content: This new video type allows publishers to suggest content in a manner similar to social platforms, providing an alternative to pure instream or outstream classifications. This category is valuable for both engaging readers and reaching targeted audiences.

The Implications of the IAB Update

The IAB’s update aims to ensure advertisers get true value for their ad purchases. This is particularly crucial for instream ads, which can command up to 50% higher bid prices than other formats. The revised definitions aim to eliminate ambiguities and ensure clarity regarding what advertisers are paying for and what publishers are offering​. Advertisers now have greater transparency into their purchases, enabling more informed decision-making and investment in video advertising​.

Technical Challenges

For publishers, the updated classifications mean a need to sell video ad inventory more strategically, affecting the CPMs they can leverage from advertisers​. With the adoption of IAB standards for video inventory categorization, a new compliance requirement has emerged. The inclusion of a "plcmt" field for bidding on video inventory isn't just procedural; it has direct financial implications. Publishers who lag in complying with these standards might find themselves in a precarious position, as Demand-Side Platforms (DSPs) could potentially exclude them from bidding processes. This non-compliance could lead to a significant dip in ad revenue, a scenario no publisher wants to face.

Inventory Challenges: The Elephant in the Room

Of course, the biggest challenge is that there is just very little high quality, contextually relevant, user-friendly video on most publishers' pages.  Some has estimated that only about 10% of all video not on Youtube would qualify for instream advertising.

To counteract this, savvy publishers have now engaged with services like Aeon to generate high quality video to live in a premium location on pages.  Not only does this give orders of magnitude more revenue possibilities (10 times the videos, at 5-10 times the CPM), but user engagement numbers rise as well. Users expect to find, engage and share video more than any other type of content.

Aeon: Creating videos that you can sell against

 

Consider the video above.  This is automatically generated from this article, and is perfectly suited to not only engage users, but also provides ample opportunity to sell high value instream advertising against.


With Aeon, publishers can now produce premium video for their entire catalog of content.  This is video that qualifies for in-stream video ad rates, but of course produced in a fraction of the time and cost as manually produced content.

Wrapping Up

IAB's primary change was that in-stream video must be sound-on when the player starts, and playback should clearly be the user's intent. Why the change?  Advertisers didn’t want to pay premium prices for a sub-premium experience.  Small, muted, thumbnail-sized videos that have little relevance to the article have little brand impact, so the IAB made the bar for premium video ad placement similar to what a consumer would experience on Youtube.  In fact, the IAB estimates that only 10% of existing video would qualify for premium!

IAB's new video ad classifications are not just a regulatory update; they represent a significant pivot in the digital advertising domain. Publishers, in response, need to be agile, embracing new strategies and technologies to stay compliant and competitive. Incorporating Aeon into your content strategy is the first huge step towards that goal.