New IAB Tech Lab video classification standards redefined instream, standalone, and interstitial placements, creating clarity but also buy-side confusion. Buyers increasingly reject or deprioritize inventory recategorized under the updated taxonomy despite unchanged underlying performance. As a result, online video investment is falling, threatening mid-funnel effectiveness that bridges CTV reach and social conversion. OLV remains an essential mid-funnel format that sustains funnels and complements CTV-driven awareness. Overcorrecting by pulling spend based on labels rather than performance risks weakening marketing funnels. Publishers report longstanding inventory being rejected solely due to new classifications, not performance deterioration.
The latest IAB Tech Lab video classification updates have introduced much-needed clarity to a historically messy taxonomy. But with clarity, there are unintended consequences. In redefining what qualifies as instream versus standalone or interstitial, the new standards have caused confusion across the buy side. As a result, valuable inventory, now categorized differently, is being deprioritized or rejected, even though its performance hasn't changed.
That's a mistake. OLV hasn't lost its effectiveness, just some legacy labels. Marketers who retreat from it now risk breaking their funnels by eliminating a crucial mid-funnel workhorse. In today's CTV-first environment, OLV is not a redundancy. Rather, it serves as a release valve that can bridge the reach of CTV and the conversion strength of social. The danger of overcorrection Some marketers are misreading the current moment in the evolution of TV and video. They're reacting to taxonomic shifts, not performance signals.
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