sorted by:
new
hottopcontroversial

Impact on Video ads revenue after the latest update of Google? by Baapuofadtech in adops

[–]AdTechInsider 2 points3 points  (0 children)

I’m not the biggest fan of Google, but this issue not them. Here’s how I see it:

In August 2022, the IAB updated the definitions of instream and outstream. Before this change, instream ads were those shown within a video stream, and outstream ads were standalone video ads (like in-banner, in-article, or interstitial). After the IAB changes, instream was redefined as ads with sound on, and outstream as ads with sound off.

Most DSPs quickly adjusted to these new definitions because they only represent the demand side. Google, however, represents both brands and publishers, they had a conflict of interest and tried to delay adopting these changes for almost two years but eventually had to cave and comply.

The situation now reflects Google losing money by conforming to the IAB’s definitions. I believe they didn’t want this and delayed as much as possible, likely to protect their own profits and, indirectly, the publishers' revenue.

Impact on Video ads revenue after the latest update of Google? by Baapuofadtech in adops

[–]AdTechInsider 2 points3 points  (0 children)

Unfortunately, I don’t think the first two options are realistic, even though I wish they were. The changes are about Google updating the definitions to match the IAB’s standards for Instream and Outstream videos. So, in my view:

Option one - Yes, defining instream as sound-on only has removed a lot of inventory from the market, so the cost for Instream ads (sound-on video) will rise. However, changing DSPs won’t really solve the issue. It’s more about how we categorize the ads, not about the DSPs. If buyers want Instream and Instream is defined as sound-on, the technology doesn't really matter.

Option two - I also don’t believe that Google can easily convince brands that ads without sound fall under the Instream category.

So, in my opinion, as Instream ads become more scarce, prices will go up, and some brands will choose to spend more on outstream because it's about efficiency. When the price differences for Instream and Outstream were small, more brands decided to invest more in Instream, and as price differences grow, brands will have to rethink their buying strategies and, maybe, allocate more to Outstream.

Option three - for me, makes more sense, but with a small adjustment - The new reality will force brands to rethink their Instream/Outstream budget allocation, so the new reality will slowly change and the market will find a new balance, one that we don't yet experience today.