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Programmatic Video Advertising: The Future of Brand Awareness in Here

Programmatic Video Advertising: The Future of Brand Awareness in HereVictoria Kensington
Tech Insights
Programmatic Video Advertising: The Future of Brand Awareness in Here

Video content has become ubiquitous in our daily routines. Whether enjoying a cozy evening with family watching TV, learning through a video lecture on YouTube, or indulging in a smartphone game, video ads are omnipresent. Brands utilize programmatic video advertising across various platforms to raise awareness about their products and services, and, frankly speaking, people generally respond positively to it. According to the source, nearly 90% of CTV ad spending is programmatic, and it is anticipated that programmatic ad spend on the network will increase by double digits in 2025. Almost 60% of advertisers believe programmatic video ads are helpful in increasing brand awareness. 

Since programmatic video ads have become increasingly popular among brands, it’s crucial to understand the specific benefits of this approach to advertising. Keep reading to understand if programmatic video advertising is something your organization needs to invest in in 2024.  


What is Programmatic Video Advertising?

Let’s kick off with the basics. Programmatic video advertising is an automated process of purchasing and selling digital video ad inventory utilizing algorithms and RTB systems. It leverages data and technology to precisely target audiences and deliver personalized video ads across various digital platforms, such as websites, mobile apps, and connected TVs. 

One fundamental aspect of programmatic video advertising is its ability to deliver targeted ads to particular target audiences based on demographic, behavioral, and contextual data. For example, a sports apparel brand can target viewers watching live sports events with ads showcasing their latest products, thereby reaching consumers with a demonstrated interest in sports-related merchandise.

Read also: ​​Brave, New, Cookieless World — Myth or Reality?


Programmatic Video Advertising Platforms

A programmatic video advertising platform is a technology solution that facilitates the automated buying and selling of digital video ad inventory. These platforms provide advertisers, agencies, and publishers with tools to plan, execute, and optimize video ad campaigns across various digital channels and devices.

Key features of programmatic video advertising platforms typically include:

1. Ad Inventory Access: These platforms offer access to a wide range of video ad inventory across multiple publishers and ad exchanges, allowing advertisers to reach their target audiences on websites, mobile apps, streaming services, and connected TV platforms.

2. Audience Targeting: Programmatic video advertising platforms enable precise audience targeting based on demographic data, behavioral patterns, interests, and other relevant criteria. This ensures that ads are delivered to the most relevant viewers, increasing the effectiveness of campaigns.

3. Real-time Bidding (RTB): This technology enables people to bid on ad impressions in real-time auctions. Programmatic platforms use algorithms to evaluate bids and determine the most valuable ad placements for advertisers, ensuring efficient use of advertising budgets.

4. Ad Creative Management: These platforms provide tools for managing and optimizing ad creatives, including video assets, interactive elements, and dynamic ad formats. Advertisers can test different creative variations and optimize performance based on engagement metrics.

5. Reporting and Analytics: Programmatic video advertising platforms offer robust reporting and analytics capabilities, allowing advertisers to track campaign performance, measure key metrics such as impressions, clicks, viewability, and conversions, and gain insights to optimize future campaigns.


Examples of popular programmatic video advertising platforms include Google Display & Video 360, The Trade Desk, Adobe Advertising Cloud, Verizon Media DSP, and Amazon DSP. These platforms serve as centralized hubs for advertisers to manage their video ad campaigns efficiently and effectively reach their target audiences across the digital landscape.


Benefits and Disadvantages

The list of programmatic advertising benefits is fairly long. Here are the most crucial ones:

  • Targeting Precision: This type of ad allows advertisers to target audience segments almost perfectly, ensuring people watch super relevant ads. High targeting precision makes ads more relevant and interesting, improves the chances of engagement and conversion.

  • Efficiency: Automation streamlines the ad buying process, reducing manual tasks and administrative overhead. Advertisers can launch and manage campaigns more efficiently, saving time and resources.

  • Real-time Optimization: Programmatic platforms offer real-time bidding and optimization capabilities, helping advertising teams adjust their campaigns on the fly based on specific performance metrics. This agility enables continuous improvement and maximizes the effectiveness of ad spend.

  • Scalability: By utilizing programmatic advertising, advertisers can reach audiences across a wide range of digital channels and devices and with various preferences. Websites, mobile apps, streaming services, and connected TVs—people can view and interact with video ads from literally any device with a stable Internet connection. This scalability increases the reach and impact of ad campaigns.

  • Data Insights: Programmatic platforms provide robust reporting and analytics, offering advertisers valuable insights into campaign performance, audience behavior, and ad effectiveness. These insights help inform future campaign strategies and optimizations.

However, there are also some considerations businesses need to be aware of:

  • Ad Fraud: Programmatic advertising is susceptible to ad fraud, including bot traffic, invalid clicks, and impression laundering. Advertisers must implement robust fraud detection measures to mitigate these risks and protect their ad spend.

  • Brand Safety Concerns: Advertisers may encounter brand safety issues when their ads appear alongside inappropriate or offensive content. Programmatic platforms offer tools and controls to address these concerns, but maintaining brand safety remains a significant challenge.

  • Complexity: Programmatic advertising involves a steep learning curve and can be complex to navigate, particularly for advertisers with limited experience in digital advertising. Advertisers may require specialized expertise or external assistance to effectively leverage programmatic platforms.

  • Lack of Transparency: Programmatic advertising operates within a complex ecosystem involving multiple intermediaries, including ad exchanges, demand-side platforms (DSPs), and supply-side platforms (SSPs). This lack of transparency can make it challenging for advertisers to fully understand where their ads are being placed and how their budgets are being allocated.

  • Ad Blocking: The prevalence of ad blocking software poses a challenge for programmatic advertising, as it reduces the visibility and reach of ads. Advertisers must focus on creating engaging, non-intrusive ad experiences to overcome this obstacle and effectively reach their target audiences.


Related: Programmatic Advertising Platforms: Technologies To Watch For


How Does Programmatic Video Advertising Work?

In the field of programmatic advertising, the procedure is as follows:

  1. A user interacts with content on the publisher's website or starts video playback.

  2. The publisher's website or video player makes an ad impression available for auction via a supply-side platform (SSP).

  3. On the other hand, demand-side platforms (DSPs) participate in the auction by bidding on ad creatives offered by advertisers in real time.

  4. The highest price, known as the winning bid, secures the ad impression.

  5. The user sees the advertisement while browsing the publisher's website or watching a video.

This entire sequence takes place in a matter of seconds, if not less. Video header bidding is a popular strategy in programmatic video advertising because it allows several demand sources to place bids at the same time.


When and Why Should You Consider Programmatic Video Advertising?

Consider programmatic video advertising when you need to efficiently reach specific target audiences across various digital channels and devices. This approach is particularly beneficial when precise targeting based on demographic, behavioral, or contextual data is required. Additionally, programmatic video advertising is essential when real-time optimization of ad campaigns is necessary for maximum effectiveness. It is also worth considering when streamlining the ad buying process and gaining access to a wide range of video ad inventory is a priority. Moreover, programmatic advertising offers scalability, making it suitable for reaching audiences at scale.

Programmatic video advertising offers several advantages. Firstly, it enables precise targeting, ensuring ads reach the right audience efficiently. Secondly, it allows for real-time optimization, continuously adjusting ads for maximum effectiveness. Thirdly, it streamlines the ad buying process, providing access to a wide range of video ad inventory. Furthermore, it offers scalability, allowing advertisers to reach audiences at scale across various digital channels and devices. Lastly, programmatic video advertising provides valuable insights into campaign performance, helping to maximize reach, engagement, and return on investment.


Types of Video Ads Used in Programmatic Video Ads

Programmatic video advertising consists of different types of video ads, designed to entertain audiences across digital platforms and motivate them to engage with the brand. One common type is in-stream video ads, which appear at any moment before, during, or after the main video content. These ads can be skippable or non-skippable and are often used for brand awareness or product promotion. 

Another type is out-stream video ads, which are standalone video units that appear within non-video content, such as articles or social media feeds. These ads autoplay when in view and typically expand to fill the screen, capturing users' attention while they browse. Interactive video ads offer an engaging experience by allowing viewers to interact with the ad content, such as by choosing different paths within the video or engaging with interactive elements like quizzes or games.

Additionally, programmatic video advertising includes overlay ads, which are displayed as banners or pop-ups overlaid on top of video content, and companion ads, which appear alongside the main video content and provide additional information or calls to action.


Best Practices of Programmatic Video Advertising 

Several key strategies ensure effective campaigns:

  • Audience Targeting: Utilize precise audience targeting based on demographic, behavioral, and contextual data to reach the right viewers with relevant content.

  • Creative Optimization: Develop compelling video ads that resonate with the target audience and adhere to platform-specific guidelines for optimal performance.

  • Ad Placement: Select appropriate ad placements across various digital channels and devices to maximize reach and engagement.

  • Real-Time Optimization: Continuously monitor campaign performance and adjust targeting, bidding strategies, and creative content in real-time to optimize for key performance metrics.

  • Brand Safety: Ensure ads are displayed alongside reputable and brand-safe content to protect brand reputation and minimize the risk of ad fraud or inappropriate placements.

  • Viewability: Prioritize ad placements that are viewable to users, ensuring that ads have the opportunity to be seen and engage the audience effectively.

  • Frequency Capping: Implement frequency capping to control the number of times a viewer sees the same ad, preventing ad fatigue and improving overall campaign performance.

  • Cross-Device Targeting: Leverage cross-device targeting capabilities to reach users across multiple devices and touchpoints, ensuring a cohesive and consistent brand experience.

  • Data Privacy Compliance: Adhere to data privacy regulations and best practices to protect user data and maintain trust with consumers.

  • Performance Measurement: Track key performance metrics such as impressions, clicks, viewability, and conversions to evaluate campaign effectiveness and inform future optimizations.

By following these best practices, advertisers can maximize the impact of their programmatic video advertising campaigns, effectively reach their target audiences, and achieve their marketing objectives.


Programmatic Video Advertising Trends

Programmatic video advertising continues to evolve, with several notable trends shaping the landscape. One prominent trend is the increasing adoption of connected TV (CTV) advertising, driven by the growing popularity of streaming services and connected devices. Additionally, there's a rising emphasis on data-driven advertising, leveraging advanced audience targeting and segmentation capabilities to deliver personalized video ads. Interactive and shoppable video ads are gaining traction, offering engaging experiences and seamless paths to purchase.

Moreover, there's a growing focus on transparency and brand safety, with advertisers demanding greater visibility into ad placements and ensuring alignment with brand values. Finally, the integration of artificial intelligence and machine learning technologies is enhancing campaign optimization and audience insights, enabling advertisers to maximize the effectiveness of their programmatic video advertising efforts.


Conclusion

Programmatic video advertising allows advertisers to optimize their campaigns in real-time, adjusting factors like ad placement, creative content, and targeting parameters to maximize effectiveness and return on investment. That being said, it is certainly a lucrative endeavor if you want to improve your targeting precision and ensure your customers are getting the ads they will like!


If you want to learn more about programmatic video advertising or feel like there’s no reason to wait, contact Axis today and start an exciting programmatic journey with a reliable partner!

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