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The Ultimate Guide to Programmatic Video Advertising

Programmatic Video Advertising

What is Programmatic Video Advertising?

Programmatic video ad has changed the face of online ads, yet there’s still confusion around what it actually is. The “Programmatic” ad refers to use of software to buy the digital advertising, as opposed to the traditional process that involves RFPs, human negotiations & insertion orders.

Efficiency,before the programmatic ad, digital ads were purchased and sold by ad buyers & purchasers, who can be costly and untrustworthy. Programmatic advertising technology assurance to make ad buying more efficient, and therefore, by removing humans from the process wherever it is possible.

The programmatic video is the software that helps in purchasing advertising ads online. Programmatic video helps in reaching the right customer at the right time, and for this, it utilises the real-time data. This way the advertiser will get more from his spends on the advertising.

With the availability of high-speed bandwidth for most of the users, they are consuming online video more than before. the online video helped for the growth of programmatic video.

Some people are even watching their television online. To reach such customers, advertisers are also switching their television budgets to digital.

Programmatic Video Advertising

There are many advantages to buying video ads programmatically.

Socio and demographic behavioral data of the audience are determined using various sources and the advertiser can show his ad just for the right audience instead of placing his ad for all audience.

This also saves a lot of time. Because the buying process is completed with only a few clicks.

Programmatic Video Advertising Platforms

Following are the Programmatic Video Advertising Platforms

1.ReTargeter: Self-optimizing audience and real-time advertising

Substitute as an umbrella network, The ReTargeter is a full-service provider to minor business advertisers.

2.PocketMath: A self-serve platform for programmatic mobile

Mobile demand-side platform gives programmatic real-time bidding tools to small business advertisers.

3.Admedo: Automatic optimization for publishers without programmatic experience

Small and medium-size advertisers can use Admedo to make and deploy in-house campaigns.

4.Visibl: Self-serve programmatic video ads

The Visibl helps to local merchants to run targeted video ad campaigns on major websites like Pandora, CNN, and the New York Times.

5.Zypmedia: Programmatic buying for local media

it is programmatic media purchasing the domain for local advertising. The platform was made on high-frequency tradeoff principles and developed to optimize performance to the delivery of local advertising campaigns.

ReTargeter is a powerful video buying platform. This started offering its services in the year 2009. This platform helps in displaying video ads to the right people and retargeting also helps to capture new audiences or re-engage the customers that already exist.

PocketMath is a mobile advertising platform and is the fastest self-service platform. This helps in instantly reaching the right people. Provides insights in very short time. It has the largest mobile programmatic inventory. This platform also provides the details of how a campaign is performing in just a few seconds.

Admedo is a demand side platform. Using this platform makes the purchasing of programmatic video ads transparent. It offers programmatic solutions to both advertisers and the agencies.

Visible Measures is a self-serve programmatic video advertising platform.

Small as well as medium sized businesses can use this platform to run their video campaigns. It is integrated with Google, Facebook etc.

Programmatic Video Advertising Market

In the US along the digital video ad spending is $7.77 billion in the year 2015 and it is likely to go up to $14.38 in 2019. Television viewers are decreasing by ten percent every year.

Marketers are adopting programmatic video advertising and in the US alone, sixty percent of the ads are purchased through programmatic channels.

The programmatic video ad spending is exceeding expectations and will continue to grow in the coming years.

Programmatic Video Advertising Trends

Programmatic buying of video advertising is growing. Here are the trends tied up with this technology.

The programmatic video is now not used just for direct sales but also for increasing brand awareness, engaging the audience and for the loyalty of the customers.

It focuses on delivering memorable and unique video content in real time on several devices that the audience uses to consume it.

Mobiles are becoming the first screen and programmatic technology is also growing as new tools for measuring real-time relevant data on mobile are emerging.

Marketers can monitor how their campaigns are performing for the mobile audience also similar to how they are measuring the effectiveness on desktops.

The programmatic video is also being adopted by television and many television shows are now available online and the audience is also growing. Advertisers are placing their ads effectively for this audience also online.

With the advantages such as being able to select the customers and reaching them at the right time, programmatic video advertising is becoming very popular. Programmatic advertising reduces expense for the businesses.

Mobile Programmatic Video Advertising

Research tells us that not only the customers are watching a ton of videos, but they’re watching on mobile.It comes as no surprise, mobile video advertising is growing three times so foster expenses on desktop video.As a result, publishers rushing to grab the video ad spots, and increasingly putting their share of digital budgets to programmatic buy.

The U.S. has been leading markets for this trend; with programmatic mobile video, ad spends reaching $2.91 billion in last year.

Programmatic technology allows advertisers to target individuals by serving ads are highly applicable to them, maximizing their ad’s impact and ROI.

Programmatic Video Advertising Challenges

The programmatic is not without its opportunities and, of course, challenges. At 2016 Programmatic Summit, representative tackled three of the most high-profile issues: adblocking, viewability, and ad fraud.

1.Ad fraud and the scourge of non-human traffic

As per the US branch of the IAB, non-human traffic, ad fraud, estimated worth $4.6 billion

2.The battle for viewability

A lot of ads that are running are not actually getting seen by humans,” – Brahe. A fact that programmatic productiveness is approaching to terms.

3.The industry’s biggest threat – ad blocking

As per the Tereza Alexandratos, manager of digital ad development at Fairfax, there’s no greater challenge than ad blocking.

Trends in Programmatic Video Advertising

Programmatic advertising is gaining momentum. This process of buying online ad over an automated procedure is changing the way media companies and advertisers think about advertising.

  1. Programmatic advertising goes mainstream
  2. Cost of ads will increase
  3. Programmatically expands into TV
  4. Beyond banner ads
  5. Ads made with dynamic creative technology

Programmatic Video Advertising Statistics

• Only 27% of execs have fallen for mobile automated ads.

• Seventy-six percent of marketers polled cited mobile programmatic buying as important.

• U.S. programmatic ad spends topped $10 billion in 2014 and is set to double by 2016. Automated ad for 50% of U.S. digital display marketing in 2014.

• Mobile accounted for 44.1% of all U.S. programmatic display ad spending, or $4.44 billion.

• Currently, the majority of marketers handling 20% or more of their media programmatically

• In a study of 25 campaigns from 18 brands which fall for programmatic video inventory in September, October, and November 2014

• According to an AOL report, more than a half of publishers (51%) told that they are currently making their premium video inventory available for sales via programmatic

• Only 15% of U.S. senior ad purchasers report via programmatic for TV ads.

• Only 8% of marketers and 9% of assistance execs known to not using programmatic for any media.

Conclusion:

Next year will be the tipping point for programmatic video ads, as mobile surpasses PC. By 2018, programmatic mobile video ad spending will reach $3.89 billion, 51.0% of total programmatic ad expenditure in the US. By comparison, programmatic desktop-based video ad spending reaches $3.73 billion, reducing 49.0% of total programmatic digital display ad spending in the US.

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