Programmatic Advertising & Its Impact on Video Marketers

programmatic advertising

Programmatic advertising with video is expected to nab a 75% share of digital video advertising in the US by 2018. In fact, 2016 showed a 39% increase from the previous year. What is programmatic advertising all about and how can your business use it to maximize your reach?

What Exactly is a Programmatic Video Ad?

You may have already heard about programmatic advertising – it’s basically ad technology using algorithms. Software is used to track online decision making to allow for automated ad buying based on socio-demographic and behavioral information. The ads are then bought using Real Time Bidding (RTB), which is like purchasing ads through an online auction. Only this auction continually updates itself. What this means to businesses looking to maximize their ad budgets, is a short route to reaching their ideal audience.

Programmatic video advertising has one major difference from traditional video ad buying. Instead of using ad dollars to purchase space and time, you are buying a specific audience. And this audience is determined for you in real time.

Why Some Businesses are Still a Bit Gun Shy

Many companies have shown reluctance in the past to using this type of technology. Yet, more and more are getting comfortable as statistics consistently point to the success of programmatic ad buying. A major concern of marketers new to programmatic ad campaigns is their complexity. They worry about the difficulties of measuring the success of these types of ads. But according to a recent industry report by AdRoll.com, 61% of UK marketers said programmatic video ads gave them a higher ROI than traditional media. Almost half of them expected to increase their 2016 programmatic video ad budgets.

programmatic advertising with video

Addressing the Challenges

As forward moving and complicated as the algorithms and software are, marketers struggle to keep up. One particular issue is measuring the success of a particular programmatic ad campaign. Analyzing attribution, which involves tracking customer behavior over multiple touchpoints, devices or platforms, has become a complicated process for many business owners. It has left them unsure of how to make adjustments to their marketing campaign.

You can easily see the potential of this shift in advertising. Simply think about all the information that social media platforms like Facebook, Twitter and YouTube have at their disposal about your customers. Furthermore, this data is updated constantly. This is an infinite source of ad targeting information that is available now to your marketing team.

What’s In Store for Programmatic Advertising?

Social media marketing has seen a massive surge in the last few years. Combining this with the mobile marketing trend paves a clear path to future growth. It’s no surprise that 42% of marketers believe that social media retargeting will be the major driver of ad performance. Retargeting, or audience fragmentation, basically pulls an even more specific audience from your pool of viewers to laser in on certain traits or buying decisions relevant to your needs.

The future of programmatic advertising is bright, and it’s likely that video in this field will see explosive growth. The technology will allow for more control and value for businesses big and small. So, they can spend more money and time doing what they do best.

According to RubiconProject.com, US spending on video ads will climb to $14.38 billion by 2019, nearly doubling the 2015 totals. This is a trend that will be sending video into a whole new realm. Get ready for the boom by learning the best tips and practices for video production at Valoso.com.

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