Video Ad Formats Explained: Instream, Outstream, CTV, and Rewarded Video
Video advertising commands 2 to 3x higher CPM than static banners. Instream video averages $3 CPM with 65% completion, outstream averages $1.50 with 35% completion, and CTV averages $25 with 80% completion. The format you choose determines both revenue potential and the technical requirements for delivery. This guide covers every major video format, their specs, CPM benchmarks, platform support, and a decision framework for matching format to audience.
Why Does Video Outperform Static Banner Advertising?
Video generates higher CPM than static display because it holds attention in ways banners cannot. Advertisers pay the premium because brand recall from video runs 2 to 3x higher than static display. Completion rate, the percentage who watch to the end, is the performance metric unique to video.
The video landscape now spans YouTube, social video (Facebook, TikTok), programmatic exchanges, and CTV. Each spawned its own format conventions and CPM structures, all of which are part of the broader display ad formats ecosystem.
What Are Instream Video Ads?
Instream ads play within a video player alongside video content. The user came to watch video. The ad appears before, during, or after that content. Instream is the highest-CPM video format because users are already in a video consumption mindset.
Instream Ad Positions — Timeline
[Video player timeline diagram showing three positions: Pre-roll (before content begins, 0 to 30 seconds, 65% completion), Mid-roll (during content at a natural break, 70% completion), Post-roll (after content ends, 45% completion). Each position labeled with typical CPM range and skippability option.]
65% completion
70% completion
45% completion
Pre-roll: Plays before video content. Skippable pre-rolls (skip after 5 seconds) average $2.00 to $5.00 CPM. Non-skippable (6 to 15 seconds) run $5.00 to $12.00 because every impression is a confirmed view.
Mid-roll: Plays at natural content breaks. YouTube restricts mid-roll to videos over 8 minutes. Achieves 65 to 75% completion because users are already engaged. CPM runs $3.00 to $8.00.
Post-roll: Plays after content ends. Completion 40 to 50%. CPM $1.50 to $3.50. Rarely prioritized except for impression volume.
Worked example: A YouTube channel with 500,000 monthly views enables mid-roll at 65% completion and $4.00 CPM. Earnings = $2,000/month. The YouTube CPM calculator lets you model this by channel category and geo.
What Are Outstream Video Ads?
Outstream video plays inside non-video content, typically within article text on publisher pages. The user came to read. The video auto-plays (usually muted) as the user scrolls. No video player app is required, only the ad container itself.
The trade-off is fundamental: users who didn't come for video are less engaged with video ads. Completion rates on outstream run 25 to 40%, significantly below instream's 50 to 70%. CPM reflects this: $0.80 to $3.00, compared to instream's $2.00 to $12.00.
In-article outstream: A video unit placed between paragraphs. Starts when 50%+ of the unit enters the viewport. Stops when user scrolls past. The most common outstream placement.
Interscroller: Full-width video between content sections. Achieves 60 to 75% viewability versus 45 to 60% for standard in-article and commands proportionally higher CPM.
Outstream matters for publishers without video content. Check CPM benchmarks for outstream by vertical: finance and B2B run $2.50 to $4.00, consumer entertainment runs $0.80 to $1.50.
What Is CTV and OTT Video Advertising?
CTV (Connected TV) ads run on internet-connected television screens through platforms like Roku, Amazon Fire TV, Apple TV, and Samsung Smart TV. OTT (Over-the-Top) refers to the streaming services (Hulu, Peacock, Pluto TV, Paramount+) that deliver content over the internet rather than through cable.
CPMs run $15 to $50. Three factors justify the premium: engaged viewing (users watch full-screen content on a couch), limited ad load (fewer ads per hour than broadcast TV), and household-level targeting (streaming login data is more reliable than browser cookies).
CTV delivers non-skippable 15 to 30 second ads through server-side ad insertion (SSAI), which stitches ads directly into the video stream. SSAI makes ad blocking nearly impossible. Completion rates run 75 to 90%.
Worked example: $50,000 for CTV on Roku at $28 CPM buys 1,785,000 impressions. Same $50,000 in YouTube pre-roll at $4 CPM buys 12,500,000 impressions. CTV delivers 7x fewer impressions but in a higher-attention environment on a TV screen.
What Are VAST, VPAID, and SIMID?
These three protocols govern how video ads are served and how interactivity works.
VAST (Video Ad Serving Template): The base video delivery standard. Your ad server sends a VAST URL. The player fetches XML containing the video file, duration, tracking pixels, and skip rules. VAST 4.x adds OMID viewability verification. Virtually every video platform supports VAST.
VPAID: Extended VAST with JavaScript for interactive pre-rolls. Created security risks and measurement inconsistencies. Google blocked VPAID on YouTube in 2018. Most major exchanges have deprecated it.
SIMID (Secure Interactive Media Interface Definition): IAB's replacement for VPAID. Runs in a sandboxed iframe, communicating through a standardized interface. Preserves interactive capabilities without JavaScript security vulnerabilities. Adoption is growing but not yet universal. For publishers implementing video, VAST is your default. For advertisers building interactive video, SIMID is the current standard. For other interactive ad capabilities beyond video, see our rich media advertising guide.
How Do Completion Rates and Viewability Differ Across Video Formats?
Completion rate is the percentage of users who watch a video ad to its end. The IAB/MRC viewability standard for video requires 50% of the video player's pixels visible for 2 continuous seconds (versus 1 second for standard display banners).
Video Format Performance Comparison
[Comparison bar chart with four grouped bars, one per video format (instream, outstream, CTV, rewarded video). Each bar shows: Avg CPM (height/color scale), Completion Rate (%, labeled inside bar), Viewability Rate (%, labeled on bar).]
| Format | Avg CPM | Completion Rate | Viewability |
|---|---|---|---|
| Instream (pre-roll) | $2–8 | 50–70% | 65–75% |
| Instream (mid-roll) | $3–8 | 65–75% | 75–85% |
| Outstream (in-article) | $0.80–3 | 25–40% | 45–60% |
| CTV | $15–50 | 75–90% | 90–98% |
| Rewarded Video | $8–18 | 85–95% | 90–98% |
Rewarded video achieves the highest completion and viewability rates because users explicitly opt in to watch an ad in exchange for in-app currency or content access. That opt-in fundamentally changes the completion dynamic. The full mechanics of the rewarded format are in our rewarded video ads guide.
Which Video Format Has the Highest CPM?
CTV commands the highest programmatic video CPM at $15 to $50, followed by rewarded video at $8 to $18, non-skippable instream at $5 to $12, skippable instream at $2 to $5, and outstream at $0.80 to $3.00.
Platform Support by Video Format
[Platform support matrix table. Rows: instream pre-roll, instream mid-roll, outstream in-article, CTV, rewarded. Columns: YouTube, Facebook/Instagram, Twitch, Roku/CTV, Programmatic Open Exchange. Cells: supported (green), limited (yellow), not supported (grey). CPM range noted in each supported cell.]
Platform differences matter within each format. YouTube instream CPMs run $2 to $12 by targeting and content category. Facebook in-stream video runs $1.50 to $6. Twitch mid-roll runs $3 to $8 for gaming audiences. Programmatic open exchange video is typically lower ($1.50 to $4 for instream) because inventory quality varies.
Use the CPM calculator to model video inventory revenue across formats given your impression volume.
Should You Use Skippable or Non-Skippable Video?
Non-skippable formats guarantee every impression is a full view but create viewer friction. Skippable formats respect user choice but pay you only when users watch (cost per view model on YouTube) or receive lower CPM (on other platforms).
Non-skippable (6 to 15 seconds): Higher CPM ($5 to $12), 100% completion by definition, but 15 to 30% of users abandon the page rather than watch. Best for brand awareness.
Skippable (5-second forced exposure, then optional): Lower CPM ($2 to $5) or CPV pricing. Completion rates 50 to 70% on content users actively chose. YouTube's CPV model charges only for 30+ second views or completions on shorter ads, which can make it cheaper per quality view than non-skippable CPM buys.
How Do You Choose the Right Video Format?
Match format to content type, device mix, and budget.
Video content publishers (YouTube channels, news sites with video): Instream pre-roll and mid-roll. Enable mid-roll on videos over 8 minutes. Use skippable pre-roll for volume, non-skippable for brand partnerships.
Text content publishers (blogs, news articles): Outstream in-article. Mobile-first news sites should run interscroller for higher mobile viewability. Standard in-article works for desktop-heavy layouts.
Mobile app publishers: Rewarded video for the highest CPM and user tolerance. For full-screen overlay formats, consider interstitial ads alongside rewarded placements.
TV-connected audiences: CTV through platforms like Roku or via a DSP (The Trade Desk). Minimum effective budgets run $5,000 to $10,000/month.
Worked example: A B2B SaaS publisher with 60% desktop traffic and webinar recordings should enable mid-roll on webinars ($4 to $7 CPM), add in-article outstream on blog content ($2 to $3.50 CPM for B2B vertical), and skip CTV and rewarded formats that don't fit their audience.
For standard banner dimensions that often serve as containers alongside video placements, see the IAB standard ad sizes guide. To compare video performance against non-video formats, our native ads vs display comparison covers engagement trade-offs across format types.
Frequently Asked Questions About Video Ad Formats
What is outstream video advertising?
Outstream video plays inside non-video content like articles, auto-starting muted as users scroll past. It requires no video player or video content — only an ad container. Outstream achieves 25 to 40% completion rates and $0.80 to $3.00 CPM, making it the primary video format for text-based publishers.
Why do rewarded video ads have the highest CPM?
Users explicitly opt in to watch rewarded video ads in exchange for in-app rewards, producing 85 to 95% completion rates and 90%+ viewability. Advertisers pay $8 to $18 CPM because the opt-in model guarantees engaged, full-length views that drive superior brand recall.
What is the difference between VAST and VPAID?
VAST is the standard video ad delivery protocol handling file delivery and tracking. VPAID extended VAST with interactive JavaScript capabilities but created security risks and has been deprecated. SIMID is the current IAB replacement providing interactivity in a secure sandboxed environment.
What is CTV advertising and why is CPM so high?
CTV advertising runs on internet-connected TVs through Roku, Fire TV, and Apple TV. CPMs reach $15 to $50 because viewers watch full-screen content with limited ad load, ads are non-skippable with 75 to 90% completion, and household-level targeting surpasses browser cookie accuracy.
What is the difference between skippable and non-skippable video ads?
Non-skippable ads (6 to 15 seconds) guarantee full views at $5 to $12 CPM but cause 15 to 30% page abandonment. Skippable ads allow users to skip after 5 seconds, earning $2 to $5 CPM with 50 to 70% completion. Choose based on reach volume versus view quality goals.
How do instream and outstream video formats compare?
Instream plays within video players alongside video content, achieving 50 to 70% completion and $2 to $8 CPM. Outstream plays in article text without video content, achieving 25 to 40% completion and $0.80 to $3 CPM. Instream suits video publishers; outstream suits text publishers.