The Power of Programmatic Video Buying

In a newly released video industry report from Adap.TV, they found that programmatic, or automated, video ad buying has doubled since their last report. As predicted by almost everyone, advertising networks & DSPs, brands and agencies have increased spending on video marketing efforts.

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As shown above on the right, next year looks even more promising for online video advertising—both brands and agencies report that their video budgets are on the rise. With the growth of programmatic video buying, we’ll no doubt see even more buyers enter the market in the near future.

Programmatic buying tackles the fragmentation of data associated with online advertising. Every consumer interaction takes place on a different media channel, different device and at a different time during a brand’s lifecycle. Programmatic buying allows marketers to consolidate all of this information into a single dashboard which they can then use to develop a comprehensive strategy about how to best engage with those individuals.

According to RadiumOne Founder, Chairman & CEO, Gurbaksh Chahal, “Programmatic Advertising is the automation of the buying and selling of desktop display, video, FBX, and mobile ads using real-time-bidding. Programmatic describes how online campaigns are booked, flighted, analyzed, and optimized via demand-side software (DSP) interfaces and algorithms.”

Real-time bidding (RTB) is one of the most popular forms of programmatic buying. It benefits both advertisers, who can run targeted campaigns at reasonable prices, and publishers, who can offer more inventory at attractive prices. Ad impressions generated by RTB are rapidly increasing.

The chart below from eMarketer (study from Forrester Consulting) shows that ad impressions have doubled year over year and will only continue to grow.

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In response, spending on RTB is predicted to rise at a compound annual growth (CAGR) rate of 57% vs. 20% for video overall.

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Ultimately, programmatic video buying is too valuable to be overlooked. It’s convenient and effective for marketers and publishers, producing overwhelming results for online video marketing efforts.

As CEO of MediaMath Joe Zawadzki said, “It is the future of marketing, available now.”

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