WTF is the difference between in-stream and out-stream video ads?

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There are two main types of video ads: in-stream and out-stream. 

As the names imply, one type refers to ads that are streamed alongside a video — like pre-roll and mid-roll ads — whereas the other type describes video ads that appear independent of any editorial video content. Except the placement of these video ads is no longer the only distinction between the two types.

In August, the IAB Tech Lab issued guidelines for digital video and connected TV ad formats, and these guidelines introduced a new distinguishing characteristic that separates in-stream and out-stream video ads, as illustrated in the video below.
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