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Instream, Outstream We All Like Video Stream

A little more than four years ago, ZEDO had a global product development meeting to come up with ideas for mobile video. At the time, things were just shifting to mobile, and the ad dollars weren’t quite there yet. The customers, however, were spending more and more time on mobile devices, and the future could be clearly predicted by publishers, who were seeing more and more or their traffic come from smart phones and tablets. Our partner, The Economist, had asked us for a way to run video ads on text pages.

The conversation in the room at that meeting quickly moved around to the differences between phones and tablets, and what consumers would “tolerate” on a device they wore on their person all day. Somehow, the phone seemed a radical departure from any other online device because of this intimate connection with its user.

Our product team showed some of us in marketing an ad unit they were calling “In Article video” because it was a large video ad format that could be shown on a text-based site, and it was a complete departure from the only available video ad format at the time, which was pre-roll. There was a shortage of available pre-roll, and marketers were searching for other places to use their existing TV creative.We thought the format was very effective, and would drive user engagement, because at the time users were just beginning their love affair with video on the phone.Mobile video was still something of a novelty.

We decided at that meeting to call our offering “In Article Video,” because it ran in the article, appearing only when the user scrolled down to see it. When we tested it, the viewability of the unit was over 70%.  We knew we had found the answer to filling advertisers’ need for something beyond pre-roll.

In the first year, we sold this format as In Article, but then the industry began to call it outstream, and soon we had at least one copycat who popularized the name “Outstream.” While this made no sense to us as a name, we had no choice but to adopt it.

One of the claims we have always made about Instream/Outstream video formats is that they are a form of “native,” meaning they don’t take the viewer away from the mobile stream of news or articles she is already reading. However, the industry decided to make it difficult for us with that definition as well: native can now also mean branded or sponsored content. Native has come to mean advertorial, and nothing to do with format or feed.

I’ll take a minute to argue here that every time the industry chooses a confusing term for an ad format, it makes that format more difficult to gain adoption. We have had to deal with the confusion around Outstream and then the confusion around the meaning of native, and we believe that has held back the adoption of both ideas.

The good news is that 77% of marketers have not hear of either Outstream or Instream video, so we’ve got a large addressable market to go after next year with our publisher partners.

 

 

We Lead in Outstream for a Reason

S1The biggest complaint in the advertising industry as we drop further into Q4, its busiest season, is the lack of video inventory. Everybody wants to run video ads, because video completion rates are higher than the CTRs on banner ads. Especially on mobile, consumers seem to have more patience with video ads than display ads. However, when they speak about video inventory many brands still mean content on high-trafficked video sites like YouTube on which they can run pre-roll. There is indeed a scarcity of that.

However, pre-roll is not the best way to achieve results with video ads, as many other companies have already discovered. The unfortunately- named “outstream,” video ads on text sites are the best performers.

In this department, ZINC is the market leader, having been the first to market with this format.  We launched what we called inArticle video almost three years ago, before the term outstream even existed, and we also initiated the term “polite” for these ads, because they only came into view only when a reader scrolled down to them, and they were also easy to close or scroll past. As  a result of the precautions we take, our ads are not intrusive.

Not only that, we never have used auto-play sound, another reason we feel comfortable calling these ad formats “polite.”

We constantly win buys away from our competitors (and there aren’t many), because we get higher viewability scores with resulting higher rates for publishers. Even the competitors are asking us how we win so many good buys.

Here’s how: we have a better format, better technology, and a better premium publisher network. We have tested our viewability with third parties, and we’re at 93%. To be a market leader, you not only have to be a technology leader, you also have to be cognizant of consumer attitudes, and you have to run on only premium publishers. That’s us.

Yes, this is a self-serving post. Every once in a while we have to sneak one in, because not enough people know what we do.