Pros and Cons of Video Advertising

Ladies and gentlemen, it’s showtime! From buzzworthy TV shows to useful video tutorials, we’re watching more and more content online every day. In fact, the average US adult watches an average of 5.5 hours of TV and digital video content per day! So, how can you break through all the noise? The answer: your video needs to be in the right spot and target the right audience on any device.

While traditional TV currently captures the majority of our viewing time, many anticipate a changing of the guard in the near future. According to eMarketer, digital video will likely overtake daily linear TV viewing by 2024. Brands are wasting no time jumping on the bandwagon either. With marketing budgets shifting to digital video, ad spending for digital video is expected to grow by $50B between now and 2025 based on IAB’s “2021 Video Ad Spend and 2022 Outlook” report.

While more viewing also means more inventory to serve your ads, not all delivery methods are alike. Below we have listed the two main types of video advertising and laid out the pros and cons to consider as you decide which kind of video delivery is best for your brand.

2 Popular Types of Video Advertising


CTV and OTT Video Advertising

A connected TV, also known as CTV, is an internet-connected device a customer uses to watch video/TV content online (think smart TV or Roku device). OTT stands for “over the top,” referring to videos accessible online instead of a traditional cable box or satellite TV (content you view on Netflix or Hulu). While many are quick to leverage CTV and OTT video advertising in their digital marketing strategy, here are some pros and cons to keep in mind:

Pros of CTV/OTT

  • Ads are non-skippable, which means the video completion rates will be high.
  • TV quality content that can be featured in both long and short form.
  • CTV offers big screen delivery, while OTT offers mobile, desktop, tablet and big screen delivery.

Cons of CTV/OTT

  • Higher CPM (cost per mille) than other forms of video advertising.
  • Most inventory is non-clickable.


Pre-Roll Video Advertising

A pre-roll refers to video advertisements placed before featured online videos that usually run from 15 seconds to 60 seconds (think YouTube ads). Many consider pre-roll ads to be very practical, but before you commit to this approach, take a look at the pros and cons of pre-roll video advertising:

Pros of Pre-Roll

  • Has an abundance of inventory.
  • Offers an efficient price point.
  • Features CTR (click-through rate) and landing/location page capabilities.

Cons of Pre-Roll

  • Has a lower VCR (video completion rate).
  • Can run in user generated content.

Ready for Your Close Up, Marketers? Connect to Your Audience with Video Marketing

With more organizations incorporating video into their marketing strategies, brands are discovering that video marketing can build better connections with their audience and generate stronger consumer awareness. In order to maximize your video marketing approach, it is important to understand what video delivery options are available and which options are best suited for your brand.

Would you like to learn more about video marketing? Feel free to reach out to GroundTruth so we can help your ad become the star of your next campaign!

Tom Donoghue
Vice President, CTV/OTT

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