Programmatic advertising is the technique of purchasing and selling ad space online automatically using data and machine learning technologies for quicker, more effective outcomes.
Here, video advertising is made by marketers and then traded programmatically. Real-time bidding, programmatic direct, or private marketplace transactions are used to accomplish this.
To move towards 2023, advertisers have boosted their expenditure on video commercials. Video is important in terms of ROI and programmatic ad trading.
About half of all display ad expenditure in India in 2022 was spent on programmatic video advertising, which cost advertisers about $29.24 billion.
Together with advancements in smart TVs, over-the-top (OTT) video, social advertising, and mobile’s continued rise, this surge has been driven by programmatic video advertising platforms like Facebook, Twitter, TikTok, and Snapchat.
Video remains the most popular media format for high-impact display ads online, despite Emarketer’s prediction that it will plateau for a few years.
It’s safe to say that automated video is currently the standard when producing and distributing digital video commercials, with 81.2% of all digital videos transacting programmatically.
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Exactly why is programmatic video so well-liked?
A powerful medium is a video, particularly for advertising.
Video is the best ad format for delivering your brand story and grabbing viewers’ attention. Of all the advertising media, it has without a doubt the greatest effect and versatility.
60% of Americans say they prefer watching internet videos to television, according to Google.
Another extremely adaptable ad style is the video format. This could explain why they are becoming more and more popular, as well as why advertisers are using more and more inventive techniques to create hyper-personalised ad messages.
Programmatic Video Advertising Formats
Today, a wide variety of programmatic video advertising formats have been developed. Each presents intriguing creative possibilities.
In-Stream Advertisements
In-stream advertisements are inserted either before, during, or after the video’s content and are a part of its linear structure. You’ve probably seen them if you’ve browsed through YouTube videos.
Play the advertisements before the video begins.
Mid-roll advertisements: Run while the video is playing
Play these advertisements after the video.
Advertising in Out-Stream
These video advertisements, which are also known as native video or in-read commercials, are distinct from their in-stream cousins.
Outstream advertisements don’t play alongside other videos; instead, they primarily show up in text and autoplay as you scroll through. Like instream commercials, these advertisements don’t interfere with already-playing video.
In-Display Ads
Rich-media videos known as “in-display ads” are seen inside display ad units, at the top of your YouTube stream, or within a page’s banner.
There is a decision-making element for the viewer because they do not play without being clicked on.
How Does Programmatic Video Work?
Programmatic movies are acquired automatically and distributed using programmatic advertising systems, much like other forms of programmatic advertising.
Here’s how it appears:
You can establish the target market and campaign objectives.
The right publisher is subsequently chosen by the programmatic platform using data and algorithms.
The programmatic platform then selects the most profitable times to show the adverts.
The advertising is then provided in real-time utilising information from numerous sources, including cookies.
It enables a more rapid and effective ad distribution process as compared to the conventional techniques of purchasing video ads or other sorts of digital ads.
Source – https://www.warroominc.com/institute-library/blog/what-is-programmatic-video-advertising
Guidelines for the Best Programmatic Video Advertising
For your programmatic video campaigns to be as effective as possible, careful research and effective techniques are required. A few of the techniques you can use for your programmatic video marketing are listed below.
Identify your target market
Before anything else, it’s critical to identify your target market. This entails determining the precise demographic you want your programmatic video advertising campaigns to target.
This comprises:
Information on demographics
Interests, actions, and age group
The list continues. Several aspects are considered, which aid in producing relevant and targeted advertising.
Invest in creatives of high quality
Second, the success of your programmatic video advertising campaigns depends on the production of engaging, attention-grabbing video commercials that engage viewers.
So make sure to produce aesthetically engaging visuals, animation, and narratives that connect with your target audience.
Adapt campaigns using data and insights
Real-time campaign optimisation is possible because of the quantity of data and insights available through programmatic video advertising. This contains information on audience demographics and behaviour, as well as metrics like views, clicks, conversions, and engagement rates.
Use cutting-edge targeting and personalisation strategies
With the use of sophisticated targeting and personalization features like retargeting, geotargeting, and behavioral targeting, programmatic video advertising enables marketers to communicate with the appropriate audience at the right time.
To continuously enhance outcomes, test and iterate
To improve and optimize your strategy, it is crucial to regularly test and iterate your programmatic video advertising campaigns.
For that, we advise running tests with various targeting strategies, creative components, and ad placements, as well as monitoring and evaluating the outcomes of your campaigns to spot potential areas for development.
5 Programmatic Video Advertising Trends
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Growingly recognised programmatic channel
According to eMarketer, American advertisers increased their spending on programmatic video advertising significantly. The value is anticipated to reach USD 74.88 billion in the current year.
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The growing use of OTT and CTV
Second, programmatic video advertising is anticipated to keep expanding in these channels given the growth of over-the-top (OTT) and connected TV (CTV) platforms.
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Financial support for immersive technology
To improve their programmatic video advertising campaigns and interact with viewers in fresh and engaging ways, advertisers are investing in immersive technologies like virtual reality (VR) and augmented reality (AR).
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Including additional marketing channels
To create a more seamless and efficient marketing experience, programmatic video advertising is rapidly being combined with other marketing channels including email, social media, and search.
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Assists with memory retention
According to Forbes, seeing a video has a much greater influence on memory retention than reading text. When a message is presented in video format, viewers retain 95% of it, compared to only 10% when it is presented in text format.
Best practices should be used in the design and execution of campaigns to fully reap the benefits of programmatic video advertising.
Future of Programmatic Video Advertising
Since its debut, video advertising has advanced significantly, and with the addition of programmatic advertising, it is now more effective than ever.
In the approaching years, we should expect greater adoption of programmatic videos. According to Statista’s forecast for 2023, programmatic ad expenditure in India will surpass $200 billion, marking a new milestone. That represents a significant increase in programmatic video advertising investment.
Platforms for programmatic video advertising will develop and mature over time. It’s critical to focus on programmatic video advertising as a whole as this evolution takes place. Stay tuned for more blogs and articles about the role and importance of programmatic video advertising in the coming years.