Out-Stream Video Ads Develop Fast in China

Source:iResearch June 09,20171:12 PM

Online video ads can be divided into two groups, in-stream video ads and out-stream video ads, by whether the ads are independent from the video platform. Currently the in-stream video ads has stepped into its mature development with a market share as high as 89.1%; meanwhile, out-stream video ads is emerging and its revenue share is expected to reach 23.2% in 2017.

Out-stream video ads refers to video ads which usually last for only a short period of time. They are usually independent from video media platforms and are usually seen on social media and news & information media platforms. In-stream video ads refers to ads in the video clips on video platforms, that is, the picture, video, flash ads played before, during or after the online videos, TV videos or live streaming videos.

In 2016 two factors boomed the out-stream video ads industry. One is the development and commercialization of short video industry fueled by changes in audience demand and social methods. The other is the product upgrading led by the improvement of Internet environment and the innovation of display channels in out-stream video ads industry.

According to data from iResearch, the revenue of China’s out-stream video ads reached 2.95 billion Yuan in 2016 with a growth rate as high as 209.6%. As the value of out-stream video ads rockets up and the short video market booms, out-stream video ads will enter into the fast development stage from exploration stage, and its revenue is expected to keep increasing and exceed 9 billion Yuan in 2017.

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