Overlays
What they are. An overlay is a small animated graphic or banner that appears within a video player while the user watches content. Also known as a "bug," these ads are generally transparent to avoid disrupting what's being watched. They tend to appear at the bottom of the video screen and disappear after a short time. Another type of overlay is a "ticker," in which the bottom portion of video player is replaced by a scrolling banner advertisement, akin to a stock ticker or the tickers you see on CNN, MSBC or Fox News and sports and home shopping channels.
How they work. Bugs, tickers and other overlay ads have some flexibility in how they function. When the graphic appears, the user can click on it to get more information. This action usually pauses the video and either spawns another browser window and takes the viewer to the advertiser's website or opens up a "player within the player" to play a five- to 30-second spot with its own clickthrough capabilities. Once the user finishes interacting with the ad, the original video content resumes.
Takeaway. Just as overlays are becoming more and more popular in television advertising, bugs and tickers provide a parallel experience on the web, but with the added bonus of being truly interactive. When an advertiser is well-matched with the audience for the online program, overlays can have the effect of underscoring the main content. They are a non-intrusive way of feeding information to consumers and they are able to hit their audience in a way that directly and organically engages.
"What we have found is that consumers understand that content needs to be underwritten," says Eric Druckenmiller, media director for interactive ad agency, Deep Focus. "When ads are done in a tasteful, consumer-friendly way that doesn't interrupt the online experience, they don't mind them being there."

