With the incredible rapid growth that online video sharing and video search sites are realizing, more and more advertisers are pumping money into video advertising. According to the latest research, online video advertising revenues in the US are expected to reach $7.1 billion by 2012 which is a 72 percent compound annual growth rate for the next five years. In 2008, the projections are just shy of $1billion.

Because of the keen interest of the advertisers towards the online video segment, many video sharing sites have been encouraged to come up with different formats for the placement of video advertisements. The quantum of investment in this segment has fueled innovation of the methods in which video sites are deploying online video monetization and advertising programs. In-stream (pre-roll, mid-roll, post-roll) advertisement formats have been in existence longest and have produced a good share of revenue for online video content producers.

Pre-Roll Video Ads: Pre roll advertisements start before the video begins and the viewer has to sit through the entire advertisement, if he does not want to rely on chances, rather wants to ensure that ha can watch every single second of the video from its beginning.

Post-roll Video Ads: In post-roll ads, just like pre-roll, a 15 or 30 sec clip is streamed at the end of a video itself. This is usually launched in conjunction with pre-roll as well as often times, the advertiser never gets their ad seen as users most often only watch part of the video.

Mid-Roll Format – With mid-rolls, a short clip is streamed in the middle (sometimes every X minutes) of video content that is playing. This tends to be less annoying to users as they are accustomed to this format in television advertising.

Many of the video platforms have experimented with various different online video formats. One of these is in-player ads: In-player ads sometimes include relevant text or image advertisements in the space available in video player between the outer margin of the video and the inner margin of the video player.

One of the most promising video advertisement formats is contextual advertising which attempts to match advertisements with the most relevant content and visa-versa. This ad itself can take of various different forms, in-video banners, lower-thirds, and contextual text overlay advertisements. The nice thing about this particular method is that it does not disturb the viewing of the video and it responds only when the viewer clicks on it.

One of the most popular version of contextual video advertising is that of what is known as the ”overlay ad.” In this format, relevant textual ads are scrolled or displayed across a small portion of the video screen (usually the bottom). Users in particular prefer this format as it is relatively unobtrusive.

I have given you a brief overview of the most common formats of video ads that are being tested and utilized at the moment. That being said, with growth being what it is, and video discovery as new as it is, we will certainly see many different companies innovating in regards to developing new and exciting formats for online video advertising.

The above article was provided courtesy of ReelSEO, the web’s leading resource for online video industry news and information, covering video marketing, video advertising, social media, and much more. For more information about video advertising, visit ReelSEO.com