Programmatic video advertising will continue to explode in 2021.

Back not so long ago (a few years actually), you bought ad space by speaking to someone - a real person. Media buyers would get inventory and negotiate ad placement by contacting numerous companies. Then came data, AI and machine learning and fast forward to today, and roughly 75% of video ads are programmatic. 

To be specific, Programmatic Video Advertising refers to the practice of using bots to buy ad space based on predetermined set parameters. The advertiser defines its ideal audience in provides access to its ads, and sets a budget. The program takes that user data and uses real-time bidding to display your ad to a user that fits your ideal client profile. As with Google PPC ads, the ad with the highest bid wins. The entire process happens in microseconds.

Why Use Programmatic Video Advertising?

Machines are more efficient at communicating with each other and using the data you give them to get your ad in front of the right person; therefore, the improved targeting generally increases conversion rates and lowers the cost per acquisition. Let’s take a look at what makes programmatic video advertising so useful.

Using programmatic advertising allows you to reach a super-specific audience. Programmatic advertising uses behavioral data to find your audience and display the perfect video ad to them, making it much more effective. Buying programmatic media lets the algorithms do all the work. Because programmatic advertising relies on data, it allows us to reach across multiple channels and serve targeted ads on mobile, desktop, and even connected TV sets.

With Programmatic Video Advertising you can make adjustments to campaigns on the fly, changing any of the predetermined parameters. It’s quick, easy, and doesn’t involve lengthy meetings or having to renegotiate publisher deals. All media ad campaign reports are based on real time data communications between machines. This data can be used to find out how successful your Programmatic Video Advertising campaigns are, and by successfully understanding analytics campaigns can be constantly improved.

A few caveats, If you’re using an ad network, then you might not have exact control of where your ad is shown. This can be a challenge with ad networks, so make sure you pick networks with a diverse portfolio and do define your audience well.

Also, make sure you know how the service you are using to run your Programmatic Video Advertising collects data because you could get a skewed view of the market and your ads’ performance.

Types of Video Ads to Use for Programmatic Video Advertising 

Now that we have a grasp of what programmatic video advertising is and why it’s useful, we need to understand the different categories of programmatic video ads.

In-stream

In-stream ads are the ones that play before you start a video, the ones that interrupt you mid-stream (much like traditional TV ads), or the ones that play at the very end.

In-display

In-display ads appear at the top of your YouTube feed (that’s the ‘Up next’ column to the right of the video if you’re watching on desktop displays). Unlike in-stream and out-stream ads, they don’t autoplay. You’ve got to make an active choice to click them and find out what the ad is all about.

Out-stream

These are the video ads you see in the middle of online articles. Like pop-ups, out-stream video ads can be a pretty controversial ad format. Some people love them, but others stop reading articles and run away on sight, so use them wisely. They can be effective depending on your target audience.

Linear TV

With programmatic, addressable linear TV is now ready for scale. This is a massive opportunity to apply digital technologies and audience data to make broadcast ads targetable and more relevant. 2021 is when linear TV should finally take off, especially with more inventory available and the technology solidly in place. Programmatic TV spend is expected to reach $6.7 billion by 2021 in the US, up from $2.77 billion in 2019.

Ready to let machines do the work?

Traditional advertising required lengthy meetings and challenging negotiations for ad space, but programmatic video advertising allows us to automate this process and focus on making the quality content we want to convert leads into customers. Next time you’re ready to launch a video ad, consider letting bots do the work for you.

VideoFresh’s team of video marketing experts is ready to help you to craft the perfect videos to match up with your programmatic targeting.

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