An introductory article by VidMatic discussing programmatic video advertising from a beginner’s perspective while providing a bird’s eye view of it.
Huh? What is “Programmatic Video Advertising”?
In this article, we are presenting an introductory to programmatic video advertising. Programmatic Video Advertising is the approach to employ real-time data to get video ad to be served. Of course, the ad serving happens to the desired internet user at the right time. This is done usually by using a software designed is to purchase digital video advertising. this means that the outcome of media in terms of return will be higher.
Just like anything else in life, everything has its advantages and disadvantage. In this article, we will present all the pros and cons of it.
What do you get out of programmatic Video advertising?
Today, the main principal in the internet business is the “Positive User Experience”. There are countless benefits of serving ads under “Programmatic Video Advertising”. However, the main benefit is the ability to serve an ad to an internet user of specific niche based on real-time intent signals. This alone, will be aligned with course of the current experience the user is having. As the ad is of the same nature of the webpage the user is surfing, an increased “Positive User Experience” will take place.
The signals can be framed from broader to narrower perspectives of course. Those signals will be used to deliver efficiently according to desire through the conversion channels. In other words, businesses today do not need to book hefty quantities of ad spaces over the internet based on wide-ranging data. Today, through the programmatic video advertising, if an internet user is browsing the internet for running shoes for example, businesses such as Adidas, Nike and Puma can compete together to serve the ad for the user in real-time and so on.
Every new opportunity is surrounded with challenges, right?
There are many challenges around programmatic video advertising. In our opinion, one of the pivoting challenge to overcome is the increased video inventory quantities in questionable methodologies due to the rapidly increasing spending (Demand) on the video inventory.
This new channel offers a powerful tool to engage audiences effectively while increasingly delivering brand messages.
This is also a main challenge in our opinion in the programmatic video advertising environment. Accordingly, this has led to the emerge of new businesses. Those business main focus is developing and offering tools to ensure brand safety environment for marketers. Moreover, they focus on tools for detection of fraudulent video traffic to deliver a compliant, brand safe and fraud free environments to ensure increasing spends of budgets.
Recognition of opportunity
Fact No. 1: Programmatic video advertising spend is on the rise globally. inside the United States of America alone, spending will increase to over $14 billion during 2019 comparing to only $7.7 in 2015.
Fact No. 2: Individuals with ages ranging between 18 and 34 years of age (aka Millennials) over 70% of them said that they consume digital TV. Whereas, 45% of Generation X said that they do the same.
Fact No. 3: Television viewability fell approximately 10% and 9% for Q3 and Q4 respectively in 2014 in a YOY (Year-Over-Year) perspective.
Fact No. 4: In 2016, YouTube anticipated video ad revenue to reach $1.9 billion by the end of 2017 inside the United States of America.
If you think that got you attention move on to our article “The difference Between VAST & VPAID in Video Advertising”.