When videos don't match the desired dimensions, you can pad the video a number of ways to achieve the desired aspect ratio.
For example, if a user submits a video in portrait format, you can use Pillarboxing or Blur to create a widescreen video without stretching the original file. Pillarboxing will maintain the original aspect ratio and pad the video with black bars on either side of the frame to create the widescreen video you desire. Blur Padding will do the same, with blurred portions of the original video rather than black bars.
The following settings will enable this ability for your transcoder profile:
Selecting "Pillarbox" from the Enforce Target Size will apply pillarbox effect rather the Blur effect, and "none" will match the nearest dimension and scale the image.
"Letterboxing" will pad the top and bottom of the video with black borders for videos that are wider than your target format.
Note: The thumbnail for the video isn't using this setting - to view the changes, click "play" on each video and watch.