Brands spend a lot of time and resources crafting a robust video ad strategy. However, in this hustle, they fail to realize that they can easily manage their advertising budget and improve ROI by implementing a programmatic video advertising strategy.
So, What is a programmatic video advertising campaign? Hop on the journey to find out!
What is Programmatic Video Advertising
Programmatic video advertising refers to a technology that automates the buying and selling of digital video ads.
However, although this format focuses on automation, programmatic video ads also help brands display their video content to the right audience at the right time. Programmatic video advertising is highly data-driven, which makes it highly accurate and result-oriented, helping brands perfect their timing of ad display.
How Does Programmatic Video Advertising Work?
Now you know that programmatic ads automate the process of buying and selling ads. But how does it actually happen?
Well, there are numerous programmatic video advertising platforms that help brands connect with publishers (websites that provide ad space) with brands or advertisers who require these ad spaces to promote their business.
When a brand wants to promote its products and services through programmatic video advertising, it contacts a programmatic agency, also known as a trading desk. The agency then uses a demand-side platform or DSP to automate the process of buying ads to meet the campaign’s objective.
The DSP has a major role in programmatic video campaigns. First, it helps brands and their agencies purchase video ad inventory. Second, it has a data management platform that ensures that video marketing efforts reach the right target audience.
The DSP manages different data, ranging from location and demography to online behavior and interest. Now, taking into account all this information, it curates a group of target audiences.
Now, when an individual from the target audience visits the publisher’s website, an ad impression is put up for auction on an ad exchange.
Here, different advertisers place bids in real-time to display their ads to that user. The bidding is very swift and typically takes a few milliseconds, and the bid that wins gets the chance to display their ads instantly.
Moreover, you also need to know about the publisher’s side. Publishers use a supply-side platform, which helps manage their ad inventory and connect with ad exchanges and DSPs to sell ad space to the highest bidder.
All these complicated terms may make you think that it is a very complex process. But in reality, since everything is automated and happens swiftly, it is very straightforward and easy to nagivate if you choose one of the most trusted programmatic video advertising platforms.
Is Programmatic Video a Big Deal?
Programmatic video advertising is a big deal. In fact, this format of advertising is predicted to reach $28.12 billion in 2028, a compound annual growth rate (CAGR) of 22.6%.
The predicted growth of the ad format is largely attributed to the rise in the use of smartphones and increased awareness about the benefits of programmatic advertisement in digital media.
Moreover, since video marketing is going to be at the forefront of this development due to its ability to engage and grab the audience’s attention, marketers can also expect some significant developments in programmatic ads, like the implementation of AI and immersive technologies.
Benefits of Programmatic Video Advertising
Efficiency and Automation
By now, we all know that programmatic video advertising strategies offer automation, making them highly efficient for digital advertising. In addition, programmatic advertising allows advertisers to continuously monitor and optimize the display of their video ads in real time.
By reaping all the benefits of this automated format of displaying online videos to a highly targeted audience, marketers can ensure all their money is going to the right place.
Moreover, since the display of video ads is highly data-driven, marketers can also start focusing on key analytic metrics to adjust the targeting parameters and fine-tune their ad campaign, thus increasing efficiency.
Targeted Advertising
The targeting features available in video ads through programmatic advertising are unmatched. The goal of programmatic video advertising is not just to win ad impressions but to ensure that the ads reach the right set of audiences.
Through this ad strategy, you can be certain that your video content reaches the right audience by precisely targeting them based on numerous criteria such as demographics, behavioral targeting, contextual targeting (targeting different keywords and URLs), retargeting, and much more. The possibilities are endless with programmatic video advertising!
Transparency and Control
The key metrics readily available for analysis help you view the progress of your programmatic video advertising campaign. This way, you can learn what is working and what isn’t in your video advertising campaign performance, giving you better control over the plan. You can view the sites where your ads are shown, the audience group your ads reach, the cost associated with displaying your ads, and so much more.
With better insights, you can make better decisions and control the display of your video ads, making it easier to fix present problems and avoid future ones.
Scalability and Flexibility
Almost every brand owner will agree that it is difficult to control the expenditure of every ad campaign, and the budget almost always exceeds what was predetermined. However, with programmatic video advertising, advertisers have more control over how much they are spending.
Programmatic ads ensure that you are not overspending on your video ads. So, if you feel that you need to decrease the budget of your video ads, you can easily cut down on the cost. Moreover, if you plan to increase your video ads’ scalability, you can also do that by increasing the budget spent. So, scalability and flexibility are two of the core benefits of this ad format.
Better Return on Investment (ROI)
Programmatic video advertising campaigns focus on showing video ads to users who are genuinely interested in your video content. So, obviously, the ROI from these campaigns will be higher. This also means that you generate more results from a smaller video ad campaign budget.
Moreover, since the display of the ads takes place through an auction, it is also possible to buy ad spaces for a much lower price, as publishers often struggle to sell their ad slots.
Most of the time, the prices are also determined through the demand-side platform, which means that the ad space can also be bought at a much lower price than usual.
Multichannel Reach
Programmatic video advertising offers multichannel reach through data-driven targeting through various social media apps, mobile apps, and connected TVs.
Through this approach, brands are able to maximize the exposure of their ads across various platforms and ensure consistency in messaging across different touch points.
Types of Programmatic Video Ads
Broadly speaking, there are three types of video ads that are popular in programmatic advertising campaigns.
In-stream Video Ads
In-stream ads are present in between video content, and publishers can opt to play the video ad either in the beginning, in the middle, or after the video is played. This format of programmatic video advertising is popular among video streaming platforms and can be most commonly seen when you are watching an YouTube video.
Out-stream Video Ads
Outstream video ads are typically displayed outside video content, such as a blog page or a text-based webpage. They are displayed as pop-ups and drop-downs anywhere on the webpage.
In-display Video Ads
These ads appear as thumbnails on video channels. They are also known as in-banner video ads and are typically placed within a standard display ad banner.
What are the Best Programmatic Video Platforms?
Google Display & Video 360 (DV360)
The Google Display & Video 360 is one of the best programmatic media buying platforms that come with a comprehensive suite of features.
- One-stop solution: First, the tool integrated display, video, and TV campaigns into one single platform to make managing each of these campaigns easy.
- Creative optimization: It also offers creative optimization with the help of features such as Ad Canvas, which helps design ads with real-time previews and a format gallery through which you can use numerous innovative templates for customized solutions. Moreover, it helps you come up with data-driven creatives that appeal to different audience groups.
- Advanced audience analytics: You can also understand and manage your audience base more efficiently with the help of advanced features that offer audience profile analysis, an activity-based audience builder, and frequency limits based on audiences, which define the frequency limits of the ad content.
The Trade Desk
The Trade Desk is the world’s largest independent programmatic advertising platform that offers omnichannel marketing opportunities.
- Advanced targeting: With the Trade Desk, you can enjoy advanced targeting features that pay close attention to detailed demographics and the target audience’s behavior, as well as focusing on the contextual display of ads.
- Detailed analytics: If you are looking for a platform for extensive reports and analysis, you are on the right track. With the advanced features offered by the platform, you can efficiently track campaign effectiveness and ROI.
- Modern technology: The platform utilizes AI and machine learning to continuously monitor the ad campaigns for better performance.
MediaMath
MediaMath Inc. launched the first demand-side platform in programmatic advertisement and now has clients that belong to one-third of the Fortune 500 companies.
The platform aims to build stronger connections between advertisers and customers through their robust strategies for omnichannel marketing. Here are some of the key features:
- Proprietary technology: This technology uses advanced AI features to predict the performance of a campaign and determine the best bid price for an ad impression,
- MediaMath’s Brain Algorithm: The platform’s functionalities have two components: the brain and the source. The brain algorithm’s main aim is to help advertisers purchase the best bid prices, while the source ecosystem aims to solve problems related to accountability and addressability.
- Intelligent targeting: The platform offers intelligent targeting options that range from contextual audience targeting to video and audio targeting, leveraging first-party data for accurate targeting, and much more.
Xandr
Xandr is an advanced advertising and analytics platform that connects advertisers, publishers, and customers under one roof. It offers powerful technology and accurate consumer insights that enable better outcomes.
Here are some of its key features:
- Advanced data and analytics: As one of the best programmatic advertising platforms, Xandr comes with robust analytic capabilities that analyze campaign performance, audience behavior, market trends, and much more.
- Transparency and control: Users can access detailed reporting and insights into their ad performance and ad-buying process, making it easy to analyze where the money is going and how marketers can make the most of the opportunities at hand.
How to create effective programmatic video ads
Although programmatic ads are all about automation, you need to have a robust strategy that will make success a certainty. Here is how you can create an effective programmatic video ads campaign:
- Have a clear goal: Having a clear goal will help you set a specific budget for the campaign and ensure you are not overspending. Moreover, having clarity also helps you have realistic expectations and enables you to finalize the KPIs that you want to pay close attention to.
- Target the right audience: To make the most of the ad space, you need to target the right audience. For this, you can use the advanced features offered by most programmatic video advertising platforms, which offer insights into your audience’s demography, online behavior, and much more.
- Choose the right video ad format: Choosing the right video ad format will ensure that you can enhance the viewer’s experience and maintain the contextual relevance of the online videos.
- Track the performance: It is important to closely track the performance of the campaign, so that you can optimize your creatives and make the best use of the ad space. This will ensure that your video marketing strategy is able to get the maximum profit.
4 Trends for Programmatic Video Advertising
AI-Driven Optimization
AI has already taken the front seat in digital marketing efforts, and in the case of programmatic advertising, we will see more AI-driven optimization in the future.
AI-driven tools help advertisers implement hyper-personalization strategies in their programmatic advertisement strategies. These tools can closely monitor customer data and tailor messages that strike the right chord.
Moreover, AI-driven optimization also helps advertisers become more productive. Because AI can analyze large data sets within a few minutes, it saves you a lot of time and effort that would otherwise be wasted on deciphering complex reports.
Focus on Contextual Targeting
Contextual targeting means that the ad displayed aligns with the content on the webpage. Although contextual targeting is not new, it is essential to keep a close eye on the latest developments because it is one of the major factors that enhance customer experience.
With the slow death of third-party cookies, contextual targeting is set for growth. And rightly so, because contextual targeting ensures that the people who see the ads are actually interested in them.
The Rise of Connected TV
The rise of resources spent on connected TV is a trend that marketers need to watch out for. Displaying programmatic videos on connected TV platforms has been shown to increase ROI and profitability for numerous brands.
However, remember that since CTV advertising is still in its initial stages, advertisers must pay close attention to the procurement process and methods used and constantly re-evaluate the measures taken to stay ahead of the curve.
Integration of Immersive Technologies
Immersive technologies such as augmented and virtual reality are also gaining momentum in programmatic advertising, thanks to their ability to grab the attention of the target audience.
Many big platforms have already started using augmented reality in their advertising campaigns. For instance, you can order a Domino’s pizza through Snapchat’s AR feature.
So, we can definitely say that AR and VR are here to stay and will soon revolutionize how ads are displayed.
Best Practices of Programmatic Video Advertising
Set Clear Goals and KPIs
Setting clear goals and KPIs for your programmatic video advertising campaign is essential to ensuring that your marketing efforts are on the right path. The KPIs help you stay focused, monitor what truly matters to your business, and avoid irrelevant metrics.
Now, while selecting KPIs, ensure that these are the ones you have full control over and can improve by changing your strategies.
Moreover, limit the number of KPIs, as too many can lead to confusion and lack of direction. The less is the KPI, the more is the clarity in your goal.
Target the Right Audience
Targeting the right audience is the lifeblood of your programmatic video advertising strategy. For this, you need the right data to create engaging video content that captures the audience’s interest. Hence, leverage first-party and third-party data and make the most of your data management platform to formulate a video ad targeting strategy to broaden your audience’s reach.
Making the most of the data you have in your hand will help tailor a plan that pays close attention to your audience’s behavior, interests, and contextual relevancy.
Choose the Right Video Ad Format
As mentioned above, there are three main types of video ads, and the one you choose will depend on your goal, budget, and channel.
But remember that no matter which video ad format you are using for your campaign, it should always be visually appealing and grab your audience’s attention while respecting their privacy. For instance, you can opt for native ads if you don’t want to look too intrusive in front of your target audience.
High-Quality Creatives
Of course, you don’t want to bore your audience with boring creatives.
Even after you have leveraged the advantage of all the data available and strategized the best marketing campaign, if your visuals cannot grab your target audience’s attention, it is of no use.
This is why the audience that is watching video ads by your brand must be able to resonate with the creatives and find them interesting enough to learn further about what you sell.
Set Campaign Budgets and Bidding Strategies
Setting the right campaign budget helps you have some control over the ROI. When you set a proper budget for your video advertising campaign, you ensure that you can control your ad spending, which helps maximize ROI.
Moreover, when it comes to your bidding strategy, you must be clear about how much you want to spend on cost per acquisition or cost per click to maximize the profits.
Utilize Available Data and Analytics
With programmatic video advertising, advertisers have access to a large set of data. So why not make the most out of it?
In this video advertising approach, you have access to real-time data of all campaigns taking place on different channels. Moreover, the DSP platforms also offer data that helps you achieve accuracy in targeting. So advertisers must make the most of this information to create a programmatic advertising strategy that accurately targets the right audience.
A/B Test Creatives and Landing Pages
Your video ad content needs to be creative if you genuinely want to make the most programmatic video advertising strategy.
The creative elements that you add to your video content must be able to capture the attention and interest of the audience. The components of your video content and landing pages must have clear messaging, attractive visuals, and a clear call to action.
Moreover, remember that programmatic advertising requires constant optimization. So, make sure you are implementing a robust A/B testing strategy as well. Now, based on the results of A/B testing, you also need to optimize the programmatic video advertising campaign to ensure it has a lasting effect on the audience.
Frequency Capping – Monitor for Fraud
As programmatic advertising rises in popularity, advertisers are also noticing a sudden increase in fraud.
Frauds in programmatic video advertising take different forms, including violating brand safety. Hence, it is important to have appropriate measures in place. For instance, having a fraud detection tool, monitoring the quality of traffic, and partnering with reputable service providers can help you steer clear of frauds taking place in this format of video advertising.
Should You Invest in Programmatic Video Ads?
Yes, you must invest in programmatic video ads. The benefits of this marketing strategy have been discussed above. However, to sum up, the availability of highly accurate audience targeting, control over budget, increased ROI, and advanced analytics and reports make this ad format an indispensable part of a modern brand’s marketing strategy.
But before you spend your time and resources on this format of advertising, it is best to set a clear goal and understand that it requires constant monitoring for success.
But that said, the advanced analytic features make optimizing your strategies easy, ensuring maximum success with minimum investment.
What Future Holds of Programmatic Video Ads?
Programmatic Video Ads are projected to grow at an unprecedented rate. In fact, the global ad spend on this ad format is predicted to reach $725 billion by 2026.
The increased emphasis on contextual targeting, AI-driven personalization, and real-time analytics makes this format of advertising one of the most preferred choices of big brands and is here to take over all the other forms of ad campaigns.
So what are you waiting for? Include programmatic advertising in your marketing strategy today and witness the difference.