In-Stream Video Ads: Are They Worth Your Marketing Budget?

As marketers, it’s no surprise that short-form video dominated as the top-performing content format in 2024. With video content taking the lead over text-heavy formats — from live streams and YouTube videos to Instagram Stories — incorporating in-stream video ads into your strategy is no longer optional; it’s essential.

You already know how powerful the combination of video and marketing tactics can be. In-stream ads allow you to place your brand right in front of your audience while they’re actively engaged in content consumption.

It’s crucial to use the right mix of strategies to make the most of this opportunity— grabbing attention with a strong hook, delivering a compelling message, and creating visually captivating content. Pairing these tactics with solid data will significantly boost the chances of your ad making an impact.

In this guide, we’ll cover the basics of in-stream video ads and share some proven strategies that marketers have found successful. Let’s dive in!

What Are In-Stream Ads?

In-stream video ads are brand promotions that play before or during videos on streaming platforms like YouTube. You might also see them in Stories or live streams on social media platforms like Instagram and Facebook. These ads seamlessly blend with the content, appearing in popular videos and keeping viewers engaged.

To give you a better idea, imagine watching a YouTube video and seeing an ad for Chewy Pharmacy pop up before the content begins — that’s an in-stream ad in action!

Benefits of In-Stream Video Ads

When executed well, in-stream video ads offer several advantages. To get expert insights, I contacted video marketing professionals to learn more about the perks.

Ad Sequencing

One of the key benefits of in-stream video ads is ad sequencing, as noted by Maria Harrison, President and Co-Founder of Bullseye Strategy — the digital agency of record for The Corcoran Group. Ad sequencing allows marketers to control the order in which viewers see a series of video ads.

“This technique helps create a cohesive narrative or story arc that enhances brand recall, message retention, and user engagement,” explains Harrison. “By bringing a brand to life through a relatable story, ad sequencing fosters a deeper connection with the audience, making it easier for them to picture themselves as part of the story being told.”

In-stream ads don’t just tell a story — they immerse viewers in an experience, making the brand more memorable and engaging.

Targeting Capabilities

In-stream video ads allow precise targeting, giving you the power to reach the right audience. You can place your ad in videos that match your chosen keywords or appeal to audiences similar to your brand’s demographic. This means your ad appears to viewers who are more likely to share interests or purchasing motives with your current customers.

With effective targeting, your in-stream ad has a higher chance of reaching potential buyers and driving conversions, making it a smart choice for marketers looking to boost sales.

Attention-Grabbing

One of the standout benefits of in-stream ads is their ability to capture attention like no other format.

“In-stream ads grab attention because they’re impossible to ignore,” says Justin Belmont, CEO of digital marketing agency Prose. “They’re perfect for storytelling, brand building, and driving quick actions like clicks or signups.”

Because they play directly within video content, these ads naturally draw the viewer’s focus, making them highly effective for delivering impactful messages.

Short-Form Advantage

The beauty of in-stream ads is that they don’t need to be long or overly detailed. Depending on the platform, you can create ads as short as five seconds, which keeps content production quick and efficient.

Although the limited time frame means marketers must make every second count, it also means creating less content than long-form videos. This makes it easier to deliver concise, powerful messages that resonate with your audience.

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Increased ROI

One of the most significant advantages of in-stream ads is their potential to deliver impressive ROI. With the right strategy, these ads can drive substantial results.

Maria Harrison, President and Co-Founder of Bullseye Strategy, shared an incredible success story from a holiday campaign her team created for The Corcoran Group using YouTube Video Ads and YouTube Select Reserve.

“The campaign focused on warm, inviting, and aspirational messaging, showcasing the joy of finding the perfect home during the holidays,” says Harrison. “This approach resonated strongly with the audience, driving a 198% increase in direct-to-site visitor sessions and a 48% increase in primary conversions (direct) year-over-year during the three-week campaign.”

Sounds impressive, right?

While these benefits might make you eager to invest in in-stream ads, successful implementation requires thorough research and careful planning.

Types of In-Stream Ads

In-stream ads may be short and easy to deliver to your audience using ad targeting tools, but that doesn’t mean your content gets a free pass. You still need to create engaging content that convinces viewers to click the ad’s link and make a purchase. To do that, it’s essential to choose the right type of in-stream ad for your campaign.

Here are the most common types of in-stream ads:

• Shoppable Video Ads: These ads feature integrated e-commerce elements, allowing viewers to click and purchase directly from the video. An example of this is the Chewy Pharmacy ad I mentioned earlier.
• Interactive Video Ads: These include interactive features like polls or clickable buttons to engage viewers and prompt action.
• Overlay Ads: These appear as banners or graphics at the bottom of the video content, delivering a subtle yet effective ad experience.
• Mid-Roll Ads: These ads are shown midway through a video, usually at natural pauses or intervals, keeping viewers engaged while delivering your message.
• Pre-Roll Ads: These play before the main video content and are often designed to grab attention quickly.
• Post-Roll Ads: Shown after the main video content, these ads provide a final message or call to action.
• Bumper Ads: Short and sweet, these are non-skippable video ads lasting six seconds or less, played before, during, or after a video.
• Skippable Ads: Viewers can skip these ads after a few seconds, giving them control while offering brand exposure.
• Non-Skippable Ads: These ads cannot be skipped, requiring viewers to watch the entire ad before their chosen video resumes.

Choosing the right type of in-stream ad is crucial to the success of your campaign. When deciding which format will best deliver your message, keep your audience and platform in mind.

Best Practices for Using In-Stream Video Ads

While in-stream advertising has many advantages, it also has its fair share of challenges. Don’t let that discourage you from trying it out — instead, use these best practices to make your ads more effective and engaging.

1. Grab Attention Right Away:
   One of the biggest challenges with in-stream ads is keeping viewers engaged long enough to recognize your brand and absorb your message. The key is using visually exciting or intriguing elements from the start. Capture their attention in the first few seconds before they even think about skipping or losing interest.
2. Deliver Your Core Message Quickly:
   Since some ads can be skipped, it’s crucial to convey your core message immediately. Focus on creating a powerful hook that leaves a lasting impression, even if viewers don’t watch the ad.
3. Target the Right Audience:
   Finding qualified audiences can be tricky. For instance, when The Corcoran Group targeted potential home buyers, they cross-referenced audience attributes such as demographics, behaviours, and interests to reach the most relevant viewers. Taking the time to fine-tune your targeting ensures your ad reaches people most likely to take action.
4. Test and Refine Your Strategy:
   Successful in-stream advertising requires ongoing optimization. Continuously analyze performance data to see what’s working and what’s not. Test different creatives, messages, and targeting settings to refine your approach and maximize your results.

Getting the Most Out of Video Stream Ads

At Engage Coders, we’re passionate about helping brands make the most of in-stream video ads. These ads are a powerful way to get in front of your audience when they’re already engaged and tuned in.

To maximize your video stream ad performance, we recommend starting by selecting the right ad type for your product, message, and audience. Whether it’s skippable, non-skippable, or a bumper ad, choosing the right format sets the stage for success.

Next, create a short, impactful ad with a strong hook and a memorable message. Keep it concise, visually appealing, and relevant to your audience’s interests. After launching your ad, track its performance to understand user behavior. For skippable ads, analyze how long viewers stayed before skipping — did they linger for a few seconds or skip immediately? Use these insights to fine-tune your messaging, creativity, and hook for future campaigns.

At Engage Coders, our PPC services help you craft and optimize in-stream video ads that capture attention and drive results. Want to take your video advertising to the next level? Let’s make it happen together!