In 2023, nearly all the growth in programmatic display ad spend was expected to be in video. In fact, by 2025, Insider Intelligence projected programmatic video ad spend to grow to nearly $97 billion - a whopping 30% increase. This proves that advertisers everywhere are looking to heavily invest in the programmatic video ad space.
In this blog post, find out how and why you should invest in programmatic video ads to accelerate your KPIs and achieve growth for your business.
Top Benefits of Programmatic Advertising
Before we jump into how you can leverage programmatic video ads to accelerate campaign success, it is important to understand just why investing in such ads is so beneficial for marketers. Below, you'll find key benefits of programmatic video advertising:
Data-Driven Optimization
With programmatic video advertising, real-time data is collected and analyzed to understand how the campaign is performing and to identify areas for improvement. This information is then used to adjust the campaign in real time, allowing for continual optimization and better results.
Cost-Effective
If you’re someone who is looking for affordable ways of marketing, the programmatic video method is worth choosing.
Automation often results in lower media costs, making programmatic video advertising a cost-effective option for businesses of all sizes. Speaking of automation, it also takes us to our next reason, which is time-saving.
Time-Saving
Both advertisers and publishers stand to benefit from the efficiency of programmatic video advertising. By automating the advertising process, programmatic video advertising eliminates the need for manual negotiations and searching for the right match. This means that both advertisers and publishers can save time and focus their efforts on other important tasks that may require more of their attention.
Improved Engagement
Video is a highly engaging format that can help to capture and hold the attention of viewers, improving the overall impact of such ad campaigns.
Increased Accuracy
Automation reduces the risk of manual error, ensuring that advertisements are placed in the right context, reach the right audience, and deliver the intended message. This increased accuracy leads to better results and higher engagement, making programmatic advertising a more effective and efficient option for businesses.
Types of Programmatic Video Ads to Consider
There are a few types of video ads to consider when developing your campaign strategy:
Instream Video Ads
Instream video ads are ads, which are presented to the users within the player. You can expect these ads to be shown up before the actual video content streams, in the middle of the video content, or after it ends.
These are linear video ads with various starting points that disrupt video content to play. Further classified as pre-roll, mid-roll, and post-roll.
Out Stream Video Ads
Outstream video ads appear in the midst of the content of any website. For example, a Youtube video, which we usually come across while scrolling through a blog or an article.These types of programmatic videos don’t interrupt video content but are displayed on top of the content.
In-Display Video Ads
Third, in-display ads (rich media, in-banner video ads, in-feed video ads etc.) are another type of video ad generally used in programmatic advertising. These ads appear within an online display banner. Here, video creatives are served in the display ad unit.
Top Programmatic Video Ad Trends
1. Increasingly Popular Programmatic Channel
According to eMarketer, US advertisers showed significant growth in their investment in programmatic video advertising. As mentioned earlier in the blog, the value in the current year is expected to reach $74.88 billion USD.
2. Increased adoption of OTT and CTV
Second, with the rise of over-the-top (OTT) and connected TV (CTV) platforms, programmatic video advertising is expected to see continued growth in these channels.
3. Investment in immersive technologies
Advertisers are investing in immersive technologies such as virtual reality (VR) and augmented reality (AR) to enhance their programmatic video advertising campaigns and engage with audiences in new and exciting ways.
4. Integration with other marketing channels
Programmatic video advertising is increasingly being integrated with other marketing channels, such as email, social media, and search, to provide a more cohesive and effective marketing experience.
5. Helps with Information Retention
According to Forbes, video has a significantly higher impact on retaining information compared to text. Viewers retain 95% of a message when they watch it in video format while reading it in text only results in a retention of 10%.
Furthermore, videos are shared 12 times more frequently than text and images combined, making them a highly effective and impactful medium for communication. These findings demonstrate the power of video in conveying messages and driving engagement.
To fully realize the benefits of programmatic video advertising, it is important to implement best practices in the planning and execution of campaigns.
Your Checklist for Programmatic Video Advertising
Maximizing the effectiveness of your programmatic video campaigns requires thorough analysis and strategies that work. Regardless of which programmatic video advertising platforms you're working with, here are a few of the practices you can implement for your programmatic video campaigns.
1. Define Your Target Audience
First thing first, it’s important to define who exactly is your target audience. This involves identifying the specific group of people that you want to reach with your programmatic video advertising campaigns.
This includes detailed targeting demographics, interests, behaviors, age group etc. Many factors are taken into account factors, which helps create targeted and relevant advertising.
2. Invest in high-quality creatives
Second, creating high-quality, eye-catching video ads that engage and capture the attention of viewers is essential for the success of your programmatic video advertising campaigns. So be sure to create visually appealing graphics, animation, and storytelling that resonate with your target audience.
3. Use data and insights to optimize campaigns
Programmatic video advertising provides access to a wealth of data and insights that can be used to optimize campaigns in real time. This includes metrics such as views, clicks, conversions, and engagement rates, as well as data on audience behavior and demographics.
4. Utilize advanced targeting and personalization techniques
Programmatic video advertising offers advanced targeting and personalization capabilities, such as retargeting, geotargeting, and behavioral targeting, that enable advertisers to reach the right people, with the right message, at the right time.
5. Test and iterate to continuously improve results
It is important to continuously test and iterate your programmatic video advertising campaigns to refine and optimize your approach.
For that, we recommend performing experiments with multiple targeting techniques, creative elements, and ad placements, as well as tracking and analyzing the results of your campaigns to identify areas for improvement.
Programmatic Advertising with GumGum
GumGum is coming in strong in the programmatic ad space. Our programmatic advertising platform will boost your ad performance with proven contextual expertise, brand-safe targeting and high-impact units that stand out and capture the attention of your audiences.
GumGum’s Solutions
There are a number of ways you can leverage our programmatic advertising solutions to maximize your advertising impact.
Verity™ Programmatic Solution*
- Use Verity™, an accredited contextual intelligence platform, to power your contextual targeting, brand safety and brand suitability strategy.
- Apply Verity™ at the pre-bid level in select DSPs or via private marketplace (PMP) deals across your DSP(s) of choice for display, online video (OLV) and connected TV (CTV) advertising.
Managed Programmatic Solution*
- Leverage GumGum’s contextual intelligence platform, VerityTM, to activate high-impact, captivating ad solutions in a custom, brand-safe PMP across 10+ top DSPs.
- Gain access to a dedicated team that will help with avails, setup and troubleshooting throughout your campaign.
GumGum’s Exchange
- Leverage our industry’s first 100% brand safe ad exchange and keep your ads protected with a base layer of Verity™'s brand safety application.
- Gain access to exclusive inventory in premium supply and ensure your ads appear in suitable environments.
GumGum’s Partners
