You, the advertiser, provide details about your ideal audience, provide access to your ads, and set a budget.
The program then takes user data and uses real-time bids to show your ad to a user who fits your customer's profile. Much like Google PPC ads, the ad with the highest bid wins.
Theoretically, this is an extremely effective move. Search engines are more efficient at communicating and using the data you provide to get your ad to the right person. In addition, improved targeting should help you increase your conversion rate because you're only looking for interested parties.
So, it's no surprise that programmatic video ads are on the rise, mostly due to TrueView ads on YouTube and better internet loading speeds, which enable high-quality video ads.
What Is Programmatic Video Advertising?
Programmatic advertising is the practice of buying and selling advertising space using data and machine learning technologies to automate the online process for faster and more accurate results.
Currently, advertisers create video ads, which the program then sells through real-time bidding, programmatic direct, or private marketplace deals.
Advertisers are increasing their investment in video ads running, with around $15.2 billion spent in 2021. This equated to half of the US's display advertising costs that year. It has, of course, continued to grow since then.
Why Is Programmatic Video Advertising Growing?
The digital advertising sector has been focusing on video, or moving images, for many years. Not surprisingly, web video consumption will account for nearly 80 percent of total online traffic this year, according to Cisco - and the trend is growing. As a result, video has become a more relevant medium for online and media marketing. The use of video advertising in the context of programmatic advertising is growing in popularity among retailers and advertisers.
In the US, programmatic video advertising is now one of the key factors driving the growth of the digital advertising space and is therefore the cornerstone of any good digital advertising strategy. In addition to this, various forecasts show that budgets spent on programmatic videos in the United States are expected to reach $50 billion by the end of 2022 - with total costs for all digital advertising formats ranging from $130 billion to $140 billion. By comparison, Emarketer estimated that total spending on programmatic advertising in Germany alone in 2021 amounted to €9.49 billion.
Figures Related to The Growth of Programmatic Video Advertising
It's no secret that videos have become the most popular way to consume content today.
By 2020, 96% of consumers increased their consumption of online videos, and 9 out of 10 of them said they want to see more videos from brands and businesses. In fact, by 2022, most people will spend 100 minutes a day watching videos online. As a result, video content should be an integral part of every company's marketing strategy.
To give you a better idea of how programmatic video advertising is growing as well as why video marketing is powerful, let’s take a look at a few interesting statistics related to programmatic advertising growth.
What Marketing Professionals Say
What Consumers Say
5 Programmatic Advertising Growth Trends
Video ads are an essential part of a digital marketing campaign. The video content format grew 3.5x faster than non-video content ads. According to IAB Europe, video now accounts for one-fifth of the total display market in Europe. Video banners can be used to promote your product, display content, provide more information about the site and its users, or make creativity more attractive.
But why should you use video banners?
Video banners reach users much faster than non-video views. Clickthrough rates for video banners are, on average, 7.5x higher than for standard banners. Tell your story. With video banners, you have plenty of places where you can tell the story of your brand. High-quality visuals have proven to be the best way to enhance your message.
To help you share your message, here are 5 trends to boost your marketing efforts.
1. First-party data
It's hard to overlook Google's plans to remove third-party cookies in Chrome by 2023. As the deadline approaches, marketers should start looking for solutions using traditional ways to show ads to relevant audiences. As a result, many have to rely on first-party solutions.
First-party data is information that companies collect from their customers from their own channels or sources. This includes email campaigns, customer surveys, or website tracking. Using first-party data is one of the software trends that can help you stay ahead of the competition.
2. Contextual advertising
Contextual targeting is one of the most effective ways to reach a specific audience based on what they're doing online and display ads on the right websites.
For example, if you sell a product online, you can show relevant ads on the websites that are most relevant to your products to be in the right context.
By incorporating video into this, you can share more information while embracing the art of storytelling.
In today's digital landscape, most people spend hours every day on their smart devices. This trend was accelerated by Covid-19.
According to eMarketer, mobile traffic accounts for about 75 percent of all online activity. If you want your marketing campaigns to be successful, you need to be where your audience spends their time.
When creating an effective mobile video advertising strategy, think about what your video content will look like on smaller screens and incorporate a mobile-friendly design from the get-go.
4. Choose the right space
It's important for advertisers to see where potential buyers with interest are most likely to find them - we all know that.
It's also important to make sure your brand appears on the right sites.
You can do this with whitelists and blacklists on the web. White or blacklisted websites can place your ads on the specific sites where you want your ads to appear.
This list may contain categories of web pages or may be very specific down to the URL level. Whitelists are a great way to make your ads appear on premium or high-performing sites. And blacklists can help you avoid sites you don't want to associate with your brand.
5. In-house digital advertising
The so-called hybrid programming model for housing combines internal capabilities with external agencies or partners. This gives you more control over your ads if you lack resources.
The program hybrid model works well when your team lacks specific functions, such as advertising operations, banner production, and programmatic strategy.
By 2022, marketers will have public insight, control, and the ability to apply learning in other channels.
When using a hybrid model, it is important to choose the right programmatic advertising platform. Focus on user-friendly platforms with a high level of strategic support. This will reduce many internal headaches, not only in the transition phase but in the long run when developing your programming strategy.
Anticipating The Future of Programmatic Advertising
These programmatic video marketing statistics and trends show that video content is more attractive and popular than any other type of content. This is why it is one of the most effective tactics used by digital marketers.
The golden age of video is here, and if you haven't used it yet, follow these video marketing trends and find the best way to start using and developing videos for your business.
What do you think we’ll see next in the world of programmatic advertising?
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