Programmatic video is an important piece of the programmatic advertising puzzle and offers brands unprecedented access to video audiences. Here’s what you need to know about programmatic video.

Programmatic video is picking up steam and it’s easy to see why. Everyone is getting on board with this new way of advertising as they see it as a way to actually get engagement.

Programmatic video advertising is growing at an alarming rate. More brands are jumping on board to utilize the benefits of programmatic video advertising.

As reported by eMarketer, US advertisers have seen a significant boost in their spending, with an increase from $52.17 billion USD in 2021 to $62.96 billion USD in 2022. This trend is expected to continue, with projections estimating a spend of $78.45 billion USD in 2023. 

Image source – Marketing Charts

This growth in advertising spending highlights the importance and impact of marketing efforts in today’s market.

With programmatic videos being new, many advertisers still believe that there is a lot of confusion. This is generally about:

• How does it work?
• How it is different from other types of advertising?
• Why should advertisers choose to go with it?

This blog article will shed some light on how programmatic video works, various video ad solutions, and common misconceptions about programmatic video.

But before that, let’s take a quick recap and learn exactly what is programmatic video.

What is Programmatic Video?

Programmatic video refers to the automated process of buying and selling video advertising space through programmatic technology.

It uses data and algorithms to determine the most effective placement for video ads and target specific audience segments.

The process involves real-time bidding, where the system selects and places an ad based on the following factors:

• Available inventory
• Audience data, and various
• Cost
• Performance
• Relevance

This allows for a more efficient and data-driven approach to video advertising compared to traditional methods, leading to improved targeting, greater cost efficiency, and better ad performance.

Essentially, ad impressions of all sorts can be traded via algorithms (aka machines/computers). Video ads are no different.

To put it in another way, Automated, real-time buying and selling of video ads is programmatic video. That’s all.

Now, let’s delve deeper into the programmatic video and see why you should consider going for it in 2023.

How Does Programmatic Video Work?

Much like any programmatic advertising type, programmatic videos work are purchased automatically and are delivered through programmatic advertising platforms. 

Here’s how it looks like:

• Advertisers define their target audience and campaign goals.
• The programmatic platform then uses data and algorithms to select the appropriate publisher.
• After that, the programmatic platform decides the most effective times to display the ads.
• Once it’s done, the ads are delivered in real-time, using data from various sources like cookies. 

In comparison with the traditional methods of buying video ads, or any type of digital ads, it allows for a more efficient and effective ad delivery process.

Also Read – Programmatic Advertising: A Quick Guide for Publishers

Why Should You Choose Programmatic Video Advertising in 2023

Programmatic video advertising not only streamlines the ad buying process by eliminating the middleman, but it also offers numerous other benefits to businesses. Let’s take a look. 

Increasing popularity 

Yes, you have heard it right. In fact, one of the most dominant ad formats in social media is expected to be video advertising. 

According to eMarket, video advertising will account for 35% of social media ad spending in 2023. Moreover, you will be surprised to know that about 93% of companies attracted new customers because of video advertising. 

Great Solution for B2B Marketers 

A study by Accenture found that 94% of buyers conduct online research, seeking solutions at any time and place. In response, B2B marketers are utilizing video to effectively reach professionals in their desired locations.

Through video, B2B marketers have a chance to showcase their creativity and differentiate their messaging, making it a valuable tool in their marketing strategy.

Data-Driven Optimization

With programmatic video advertising, real-time data is collected and analyzed to understand how the campaign is performing and to identify areas for improvement. This information is then used to adjust the campaign in real time, allowing for continual optimization and better results.

Cost-Effective

If you’re someone who has not tried programmatic video and is looking for affordable ways of marketing, the programmatic video method is worth choosing. 

Automation often results in lower media costs, making programmatic video advertising a cost-effective option for businesses of all sizes. Speaking of automation, it also takes us to our next reason, which is time-saving.

Improved Engagement

Video is a highly engaging format that can help to capture and hold the attention of viewers, improving the impact of advertising. It is because videos are usually interactive and easy-to-consume type of content, 

Time-Saving

Both advertisers and publishers stand to benefit from the efficiency of programmatic video advertising. By automating the advertising process, programmatic eliminates the need for manual negotiations and searching for the right match. 

This means that both advertisers and publishers can save time and focus their efforts on other important tasks.

Increased Accuracy 

Automation reduces the risk of manual error, ensuring that advertisements are placed in the right context, reach the right audience, and deliver the intended message. This increased accuracy leads to better results and higher engagement, making programmatic advertising a more effective and efficient option for businesses.

Types of video ads used in Programmatic Video Ads

There are three most common types of video ads used in programmatic advertising. Take a look.

Instream

Instream video ads are ads, which are presented to the users within the player. You can expect these ads to be shown up before the actual video content streams, in the middle of the video content, or after it ends. 

These are linear video ads with various starting points that disrupt video content to play. Further classified as pre-roll, mid-roll, and post-roll.

Outstream

Outstream video ads appear in the midst of the content of any website. For example, a Youtube video, which we usually come across while scrolling through a blog or an article.

Image Source – Think with Google 

These types of programmatic videos don’t interrupt video content but are displayed on top of the content.

In-display (rich media/in-banner/in-feed/etc)

Third, in-display ads are another type of video ad generally used in programmatic advertising. These ads appear within an online display banner. Here, video creatives are served in the display ad unit.

Also Read – Types of Video Ads, Best Practices & How Are They Served

5 Trends of Programmatic Video Advertising 

1. Increasingly Popular Programmatic Channel

To fully realize the benefits of programmatic video advertising, it is important to implement best practices in the planning and execution of campaigns.

Best Practices of Programmatic Video Advertising 

Maximizing the effectiveness of your programmatic video campaigns requires thorough analysis and strategies that work. Here are a few of the practices you can implement for your programmatic video campaigns. 

Define your target audience

First thing first, it’s important to define who exactly is your target audience. This involves identifying the specific group of people that you want to reach with your programmatic video advertising campaigns.

This includes:

• Demographic information
• Interests
• Behaviors
• Age Group

The list goes on. Many factors are taken into account factors, which helps create targeted and relevant advertising.

FAQs – Programmatic Video 

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