The video advertising landscape is shifting, and if you’ve felt the impact, you’re not alone. Many in the industry are grappling with these changes, wondering what they mean in the long run. Rather than focusing only on the short-term fluctuations, let’s take a step back and look at the bigger picture - what’s happening, why it matters, and where we believe things are headed.
First, let’s clear up a common misconception: the total amount of video supply in the market hasn’t actually changed. What has changed is how SSPs categorize Instream vs. Outstream impressions.
Over the past year, most SSPs have aligned with the IAB's guidelines, reclassifying inventory that was previously labeled as Instream as Outstream. If it feels like there’s suddenly a flood of Outstream supply, that’s because the same inventory has been relabeled—not because there’s more of it.
We’ve seen this type of transition before in ad tech. Think back to when Native advertising first gained traction. At first, advertisers treated it like just another banner unit, paying similar CPC rates. But over time, they realized Native offered a more integrated and valuable experience. Prices dipped temporarily during the adjustment period, but once advertisers understood its true potential, they started investing more, and Native found its place in the ecosystem.
Something similar is happening with Instream and Outstream today. New subcategories of Outstream—like Accompanying Content and Interstitial video—are emerging, and while publishers have quickly adapted to the new classifications, advertisers and agencies are still catching up. That delay is causing some short-term pricing fluctuations, but we expect things to stabilize as buyers adjust to the new definitions.
Another challenge involves In-Banner Video (IBV). When Outstream inventory isn’t clearly categorized, IBV can inadvertently cannibalize potential publisher revenue. If a display ad slot is repurposed for video, it may generate a different CPM, but that doesn’t always translate into incremental revenue. More importantly, if misclassified IBV leads to downward pricing pressure, it risks devaluing actual video inventory.
Despite these bumps in the road, we believe transparency will ultimately benefit everyone—just like it did with Native ads. A clearer classification system helps advertisers truly understand what they’re buying, building trust and encouraging long-term investment. Rather than seeing this shift as a market downturn, we should view it as a necessary recalibration. Once buyers fully adapt and recognize the unique benefits of each format, we anticipate a more balanced market—and, in many cases, higher pricing where it makes sense.
The video ad landscape is evolving, and while change is rarely easy, it often leads to better outcomes for those who take the time to understand and adapt. The key is to stay informed, remain flexible, and recognize the opportunities within these challenges.
Instream vs. Outstream: A Market Reset, Not a Crisis
