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Programmatic Video Advertising

Everything about Programmatic Video Advertising


What is Programmatic Video Advertising?

Programmatic Video Advertising is a term that refers to the use of software or bots to purchase digital video advertising space online. Essentially, the practice uses an algorithm operating in real-time to replace a variety of menial activities and improve on targeting and cost-efficiency. Programmatic video advertising as an emerging industry essentially has two ends. On one end, sellers hoping to leverage more value out of their video archives publish content to SSPs or sell-side platforms, while on the other end of things, advertisers apply software to bid on and purchase video ad space based on set criteria given to the bots.

How can Programmatic video can be used?

Programmatic video advertising can be used in a number of ways to benefit various kinds of industries. It can be used to expand the reach of your company by more effectively targeting groups and demographics that are likely to be interested in your product or service. Many companies have also made the switch as a response to a lack of resources or a dip in profitability. Programmatic advertising as a whole has been shown to dramatically increase the effectiveness and efficiency of advertising campaigns, as well as making better use of dedicated budgets.

What are the benefits Programmatic Video Advertising?

Aside from the cost effectiveness that comes about thanks in part to the reduction in menial labour required, a better use of dedicated resources and increased ROIs, programmatic video advertising also offers a number of additional benefits. First, the software enables your marketing team to collect valuable and comprehensible data on the audience that is viewing your content. Advert-buying algorithms are increasingly being developed to learn and adapt based on the data. This learning curve provides a road-map for marketers to understand who is really interested in their product and whether or not they have misidentified their key demographics. As a whole, programmatic video advertising allows your marketers to take a step back from the details and focus of the big picture when it comes to strategy.

Why is it important?

There are two sides of the picture when it comes to the current importance of programmatic video advertising. On one side there is the general misunderstanding of the term and the software behind it, even among marketers. One recent survey by the Association of National Advertisers and Forrester indicated that only 23% of marketing teams understood the term and utilised the technology. On the other side, there are the massive resources being put behind it by those that do understand it. eMarketer has estimated that spending on programmatic advertising to increase to a staggering 9 billion in the coming year.

How Programmatic Video Advertising works

Programmatic video advertising requires a number of key players and software to deliver it impressive results. One stage involves algorithms and AI that use data such as that obtained from cookies to paint a picture of the kinds of visitors and viewers that you should be targeting. This is sometime down in-house by the company in question or the task may be outsourced to a data management platform. The next stage involves your buying software connecting with an SSP. Publishers use these platforms to advertise their content and the platforms sell them based on attention data that the SSP itself has acquired.

Data-driven programmatic video advertising

The foundation of programmatic video advertising is based on personalization. Having an understand of the customer, by drawing behavioral insights from data, is the key to an efficient programmatic advertising strategy.

There are three tiers of data to be considered for programmatic video advertising: first-party data, second-party data, and third-party data.
First-party data is the advertisers own data on the customer, based on primary research. Second-party data is customer insights collected by a constituent of the company, such as an agency. Third-party data is data that is available to the public at a cost and is usually sold on a rate card basis.

Data-driven programmatic video advertising enhances targeting. In digital out-of-home (DOOH) for example, there are a variety of triggers that can be used: time of day, weather, stock trends, outcomes of sports events, face detection, etc. This means that a far greater proportion of meaningful impressions, relative to the total number of impressions can be achieved through the precise data triggering capabilities of programmatic video advertising. The goal behind programmatic video advertising is to deliver the right ad to the right audience in a more appealing way that interests the viewer, all in an effort to spur conversion/sales. Audiences are a lot less likely to ignore ads if they are tailored directly for them.

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