In recent years, video advertising has become incredibly popular due to its ability to capture users' attention. It is more effective and memorable than traditional banner ads. However, despite the clear advantages, there are many nuances that advertisers and publishers need to consider — especially in the Russian market.

In the Western internet segment, most video content is consumed within closed advertising ecosystems — YouTube, Meta, TikTok, and streaming services (Hulu, Netflix, etc.). On open web resources, the volume of video content is significantly lower. The reason is simple: video creation requires substantial investments, and most publishers do not have their own video production capabilities.

To monetize a website through video ads, many publishers turn to outstream advertising. This format allows video to be shown outside of video content, solving the problem of lack of video materials for publishers. Below, we explore how this works and the potential pitfalls.

The Situation in Russia

Since 2022, the Russian advertising market has been hit hard by sanctions. Many major international companies, including Google (with YouTube) and Meta (owner of Instagram and Facebook), ceased operations in the country. As a result, familiar platforms for video ad placement became unavailable to Russian advertisers and publishers, creating a shortage of quality video inventory.

In this context, domestic platforms like Rutube (monetization by Gazprom Media, «Qvant»), VK Video (VK Ads), Yandex.Video Hosting (Yandex, Yandex Ads), and TV channels and online cinemas, have been actively developing their video services to fill the void. However, despite their growth, these platforms are slowly gaining an audience and still fall short of the scale of global giants and the inventory volumes available before 2022.

Amidst this video content shortage, the number of ads on pirate resources has significantly increased. With many copyright holders leaving the Russian market, pirate sites have filled the vacuum, offering access to illegal content that was previously distributed officially. This has attracted not only regular users but also advertisers who have begun using such resources for video ad placements.

However, advertising on pirate platforms faces serious problems. The main issue is the dominance of gambling and sports betting campaigns. These sectors, with their large budgets, buy up almost all available inventory, leaving little room for other advertisers. As a result, the quality of video ads on pirate resources is significantly reduced, and trust in such placements is declining.

What Is In-Stream and Out-Stream Advertising?

In-stream video ads are those shown directly within the video player, before, during, or after the main content. Examples include ads on YouTube or streaming services like Netflix or IVI. In-stream ads are particularly effective because they are integrated into content the user is already interested in. This significantly increases the likelihood that the viewer will watch the ad to the end, especially with mandatory watch ads like YouTube pre-rolls.

In-stream ads can be divided into two types:

• Skippable ads that the user can skip after a few seconds of viewing. Example: ads on YouTube that appear at the beginning of a video with the option to skip after 5 seconds (though the total ad duration can be longer).
• Non-skippable ads that the user must watch to the end to continue viewing the content. These ads are usually shorter (for example, 6-second bumper ads on YouTube).

The benefits of in-stream ads are clear: the user is already interested in the content they are watching, and the ad becomes part of it. This greatly increases the chances that the advertising message will be received and remembered.

However, for publishers, especially in Russia, creating and maintaining in-stream content is an expensive process. Not everyone can afford to produce video materials regularly, so in-stream advertising is available only to major players like media holdings and popular bloggers.

Out-stream video ads are shown outside of video content. Unlike in-stream ads, they appear within textual content, often between paragraphs of articles or in ad blocks. The main advantage of out-stream ads for publishers is that there is no need to create or provide video content. This format allows publishers to monetize pages filled with text, images, or other multimedia content.

An example of out-stream advertising would be a video ad that plays in the middle of an article on a news site. This format is less intrusive and usually doesn't require the user to watch the entire video. It may play automatically (autoplay) or start based on user interaction.

However, out-stream ads have their downsides:

• Low visibility. Videos may appear in parts of the page that the user doesn't see (e.g., outside the visible screen area).
• No sound. Most out-stream ads start without sound, which significantly reduces the effectiveness of the advertising message.
• Lack of engagement. Since the videos play automatically, users often ignore them and simply scroll past.

Despite these disadvantages, out-stream advertising remains a popular monetization method for publishers, especially for those who cannot create their own video content.

MRC and Standards for Video Advertising

In the video advertising field, advertisers focus on two key metrics: viewability and audibility. These parameters play a crucial role in assessing the effectiveness of video ad campaigns.

The standards of the MRC (Media Rating Council) are widely used to evaluate campaigns. MRC is an organization that sets criteria for measuring the quality and effectiveness of advertising, including video advertising. These standards help advertisers, publishers, and platforms objectively assess the success of video ads. It is important to note that MRC standards cover not only basic visibility and completion metrics but also provide detailed criteria for evaluating various video ad formats, including in-stream and out-stream ads.

Key Criteria for Evaluating Video Ads by MRC Standards

MRC has developed several key parameters for evaluating video ads:

1. Viewability:
   • A video ad is considered viewable if at least 50% of its pixels are displayed on the user's screen for at least 2 seconds. This rule applies to both in-stream and out-stream ads.
   • For large video banners or full-screen ads, stricter criteria may apply, requiring more visibility.
   • However, in practice, many ads that are technically shown to users remain unseen. This applies, for example, to video ads that play outside the visible area of the screen.
2. Completion Rate:
   • A key metric for evaluating the quality of video ads is the completion rate, which shows the percentage of users who watched the video to the end.
   • In-stream ads typically have higher completion rates since the video is integrated into content that has already attracted the user's attention.
   • Out-stream ads have significantly lower completion rates as users often scroll past such videos, especially when they are muted by default.
   • It is important to note that this metric is most susceptible to distortion due to fraudulent actions.
3. Audibility:
   • For in-stream ads, sound is an important factor that enhances the effectiveness of the message. MRC highlights the audibility criterion. An ad is considered audible if it plays with sound for at least 2 seconds.
   • In out-stream ads, sound is usually off by default, which affects the perception of the advertising message. MRC recognizes this as the norm for this format, but audible videos are still rated higher.
   • In Russia, as in the rest of the world, the problem of automatic sound muting in video ads is widespread, especially in out-stream formats, where videos predominantly play without sound.
4. Autoplay:
   • MRC assesses whether the video starts automatically or is triggered by the user's action. In in-stream ads, autoplay is usually acceptable because the user expects video content. However, in out-stream ads, autoplay can be annoying, especially if the video appears unexpectedly within text content.
5. Sizes and Placement:
   • MRC standards pay special attention to the size and placement of video ads on the page. In-stream ads, embedded in the content, have a better chance of being noticed and watched, especially if they are in the user's visible area.
   • Out-stream formats, on the other hand, often suffer from low visibility due to their placement in ad slots outside the main content.
6. Ad Fraud Detection:
   • MRC actively fights video ad fraud, particularly the manipulation of viewability and completion metrics. MRC standards include tools and practices to detect artificially generated impressions and invalid views, which is critical for evaluating the quality of video campaigns.
7. Interaction:
   • A key parameter for in-stream ads is user interaction with the video. MRC tracks clicks, pauses, rewinds, and other actions that reflect the user's interest in the content.

Differences Between In-Stream and Out-Stream Ads According to MRC Standards

• In-stream ads are rated higher because they are integrated into the main video content, played with sound, and show higher viewability and completion rates. This format is more effective at achieving its goals, as users are already primed to watch video content, which increases their willingness to engage with the ads.
• Out-stream ads, on the other hand, face several limitations: the default lack of sound, lower completion rates, and the risk of lower visibility. Nonetheless, MRC recognizes the importance of this format for monetizing non-video pages and has developed adapted quality standards that account for its specific characteristics.

Video Ad Fraud

Fraud in video advertising has become one of the most serious problems in the modern advertising market. The large budgets for video advertising attract fraudsters who use various schemes to profit. This undermines the trust of both advertisers and users. The most common scheme is manipulating viewability and completion metrics, often associated with the use of VAST and VPAID tags.

VAST (Video Ad Serving Template) is a standard format for serving video ads that defines video playback and tracks viewability and completion metrics. VPAID (Video Player-Ad Interface Definition) enables interactive interaction with the ad but becomes vulnerable to fraudsters who inject malicious scripts.

One of the most common schemes is falsifying completion rates. Fraudsters simulate a completed ad view, even when the video wasn't shown to the user or played for only a few seconds. This is achieved by automatically triggering scripts that send a signal of video completion without using traffic or resources to actually show the video. As a result, advertisers pay for non-existent views.

Another issue is the improper placement of video ads on questionable and low-quality sites. Such resources may offer advertisers high view and completion rates but actually use schemes where the video is hidden or plays in unseen parts of the page. This phenomenon is known as fake inventory — ad slots are "filled" through fraudulent actions without reaching a real audience.

In Russia, the problem of ad fraud is particularly acute. After the departure of international companies, demand for quality video inventory surged. Advertisers are increasingly turning to less vetted platforms, creating a space for fraudulent schemes. Sites with low trust and dubious content often use deceptive tactics to boost viewability and completion rates, attracting unsuspecting advertisers.

In response to this, solutions to combat video ad fraud are being developed. Modern protection tools — traffic monitoring, user behavior analysis, and script checks on the page — help detect and prevent fraud. The use of advanced verification systems, such as invisible impression blocking technology, is becoming an important step in protecting advertisers' budgets. Platforms can use real interaction analytics, tracking not only video completion but also actions such as pausing, rewinding, or interacting with video elements.

Thus, the fight against video ad fraud requires the introduction of stricter standards and deeper analysis of performance metrics. Advertisers need to pay increased attention to where their ads are placed and which metrics truly reflect real user engagement.

Video Banners: A Hybrid Format

Video banners are a hybrid advertising format that combines display advertising and video content. They are placed in standard ad blocks (e.g., 300×250 or 728×90) and play short video clips. Unlike traditional video ads, which require a separate player, video banners are embedded in familiar banner slots. This allows for the efficient use of ad space without creating new slots on the site.

This format is particularly popular in the Russian market because it doesn't require publishers to create special video content or develop new ad zones. Publishers can continue to use their standard ad slots while increasing revenue through higher bids for video ads.

Advantages of Video Banners

1. Versatility. Video banners can be placed on any page with banner ad slots, allowing publishers to easily integrate video ads without having to drastically change the site's structure.
2. High CPM. Video ads, even in banner format, typically have a higher CPM (cost per thousand impressions) than static banners. This makes video banners an attractive format for publishers looking to increase revenue without additional costs for creating video content.
3. Subtlety. Video banners usually don't autoplay with sound, making them less intrusive for users compared to traditional auto-playing video ads. This can also contribute to increased time spent on the site, as users don't feel that the ad is interrupting their interaction with the content.
4. Ease of Creation. Advertisers can use pre-existing video content to create video banners, reducing ad production costs. This makes the format attractive to both large brands and small and medium businesses that may not have the resources to create expensive ad videos.

Disadvantages of Video Banners

1. Low visibility. Since video banners are placed in traditional ad slots, they can suffer from the same issues as regular banners — users may simply ignore them. This reduces their effectiveness compared to full in-stream or out-stream video ads.
2. Limited creativity. Video banners are constrained by the size of standard banner slots, limiting the possibilities for creative use of video. Unlike full-screen or larger video formats, video banners may seem less impactful and memorable.
3. No sound. Many video banners play without sound, which reduces their appeal for advertisers looking to use audio elements to enhance their message. While this reduces user irritation, it also limits opportunities for audience engagement.

Use in the Russian Market

Video banners are widely used on Russian websites, particularly in the news portal and entertainment resource segments, where monetizing traffic through various ad formats is essential. Publishers already using out-stream formats can additionally implement video banners to increase ad revenue without the need to create new video content.

In the Russian market, video banners can be a profitable compromise between traditional display advertising and full-fledged video ads, especially in a market where most publishers lack the resources to create their own video content.

Conclusion

Video advertising remains a key tool for content monetization in the digital space. In-stream, out-stream, and video banner formats offer many opportunities for publishers and advertisers, especially in the context of limited access to international platforms. After 2022, the Russian video ad market has undergone significant changes, and adaptation to the new realities has become a necessity for all players.

«Yandex» and its ecosystem play a key role in supporting and developing video advertising in the Russian market. The widespread presence of Yandex's advertising ecosystem allows advertisers to effectively use local resources for video advertising. With its extensive user base and diverse catalog of ad formats, Yandex leads the way in both digital advertising in general and video advertising in particular.

However, Yandex is not the only one offering such formats. For example, AstraLab or AdRiver can also display their video ads, including through Yandex Header Bidding. If you need such a solution, let me know!