A method of making a coding mode decision for a current macroblock of a current video frame including determining an INTERSAD value, selecting at least one video characteristic associated with the current video frame, comparing the INTERSAD value with a corresponding range of each selected video characteristic, selecting interframe coding if the INTERSAD value is within the corresponding range of each selected video characteristic, performing intraframe prediction to provide an intraframe prediction macroblock and determining an INTRASAD value if the INTERSAD value is an outlier of any selected video characteristic, selecting intraframe coding if the INTERSAD value is greater than the INTRASAD value and otherwise selecting interframe coding. The video characteristics may be based on any combination of an average of interframe differential sums, a sum of absolute differences between each pixel value of the current macroblock and a mean pixel value of the current macroblock, and a quantization parameter.