Did you know that 78% of internet users consume videos online at least twice a week, and 55% watch at least one video on a daily basis? As the world is moving fast, it becomes incredibly essential for businesses to grab the attention of their clients within seconds.
Likewise, the behavior of consumers is shaped by video content, affecting many commercial choices they make, including whether they visit a website, provide a company with their email address, or buy something.
But what does programmatic video advertising mean for businesses?
Well, let’s dive in to understand what programmatic video advertising is and how it could help your business build more revenue.
This article walks you through essential keywords such as programmatic video, programmatic video ads, programmatic video advertising platforms, and more.
What is programmatic video advertising?
Programmatic advertising is the act of selling and buying advertisement spaces using machine learning technologies and data to automate the video advertising process efficiently for better results. In this case, marketers produce video ads, which are subsequently traded programmatically through real-time bidding, programmatic direct, or private marketplace deals.
Programmatic video advertising enables marketers and brands to laser-focus their content specifically on their target audience, streamlining the advertisement investment more optimally.
With that, some may even question what the need is for programmatic video advertising. Well, let’s break it down.
Video continues to be a significant component of every advertiser’s media mix despite the advertising industry’s ongoing expansion with new channels, platforms, and formats. In fact, according to eMarketer, this year’s programmatic digital video spending will reach $62.96 billion, with video accounting for more than half of all programmatic digital display ad spending. It is obvious that now is a crucial time for advertisers to pay attention!
Programmatic video advertising platforms like Facebook, Twitter, Snapchat, and TikTok, as well as innovative technological advancements in smart TVs, various OTT platforms, social media advertising, and the ever-growing popularity of mobile phones, have influenced the demand for video consumption.
Although eMarketer anticipates that video will plateau for a few years, this doesn’t change the fact that video continues to be the most popular media type for high-impact display advertisements online.
It’s safe to say that automated video is currently the standard when producing and marketing digital video commercials, with 81.2% of all video files engaging programmatically.
Is programmatic video advertising the right one for your business?
We live in a world of limitless opportunities, and your business is no exception. Before deciding on a marketing method for your company, it is critical to understand the benefits or advantages they provide so that you can make an informed decision. Fret not, we have compiled a list of advantages of programmatic video advertising. Let’s dive in!
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Data Leverage
Programmatic video advertising enables streamlined and laser-focused targeting. It employs data to connect with targeted, appropriate audiences. In addition to the advantages of programmatic targeting, a video campaign gives you access to video marketing metrics that help with measurement and attribution.
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Immense information is quickly communicated in video advertising
The video mixes visual and aural components, allowing you to say a lot in a short amount of time. This advantage distinguishes video from other programmatic ad formats, which often only have a brief window of opportunity to grab a user’s attention. Using video, you can get a lot of information across quickly. You are not limited to simply describing a product or service. You can start establishing credibility with the viewer by educating them about your company.
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Compelling Format
HubSpot reports that during 2018, the amount of digital video watched nearly doubled. Given that video is such an engrossing medium, it is not surprising that people are spending more time watching it. The video is the ideal narrative medium as it effectively combines the power of music and visuals.
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Brand identity and awareness are increased by video advertising
Video’s compelling qualities make it a platform for expressing corporate identity and increasing brand recognition for businesses. Also, companies have discovered that after seeing video ads that tell gripping and interesting tales, viewers are more likely to remember their brands.
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Streamlined Targeted Ads
It is a waste of money to show your advertisement to someone who is not part of your target market. You don’t take that chance with programmatic video advertising.
In the field of video advertising, we’ve come a long way. You’re no longer restricted to merely investing in a well-liked TV time slot and crossing your fingers.
Due to the readily available online data, you can make sure that only viewers who fit the age, gender, nationality, and socioeconomic class of your potential clients see your video advertising. Even better, you may contact them on the channels they choose to use by focusing your advertising on their personal interests and pastimes.
If programmatic video advertising is something you would like to add to your business strategies, you can avail of services from top companies such as Kedet, WebFx, MediaMath, Amobee, and many more.
How AirAsia Gained 30x ROAS With Programmatic Video Advertising?
The best real-life example you can learn and integrate into your business is how AirAsia utilized programmatic video advertising to increase their ROAS return on ad spend) by 30x. AirAsia launched a Facebook marketing campaign in an effort to increase brand recognition and ticket sales in 2020. The target audience for this advertisement was loyal AirAsia travelers. Also, it targeted passengers who had flown with AirAsia after one of their aircraft crashed in 2014.
An individual advertisement with distinctive creative was sent to each target market.
Frequent AirAsia travelers were shown an advertisement that featured the airline’s fares for their most popular itineraries. In contrast, passengers who had recently traveled on AirAsia (or hadn’t) may have seen a lighthearted video from the airline or prices on trips they had recently searched for.
Overall, the campaign was successful and produced the following outcomes:
- 58X ROAS when utilizing Facebook’s Lookalike Audiences,
- 30X ROAS
- a 17-point increase in ad recall
By creating segmentation for separate audiences and sending customized creatives targeting their needs and searches to grab their attention, you can use programmatic video advertising to reach closer to your clients, or even better, get the deal closed.
Wrapping it Up
Programmatic video advertising is highly popular among marketers and advertisers due to its potential to reach ideal audiences effectively. 87% of marketing executives use video as a marketing strategy for a reason, and that reason is bigger and better revenues. The vast majority of digital professionals are happy with the return on investment they receive from their video advertising!
This means that by switching to programmatic video ads, you can use the already potent medium of video as a super resource for conversions because programmatic technology allows for targeting, personalization, and budget control.
With that, hopefully, this article was able to answer all of the questions you could have in mind regarding programmatic video advertising.
Now that you know what programmatic video advertising is, why it’s so common, and which ad formats are most frequently employed, you can make an informed decision.
The next time someone asks, “Hey, what is programmatic video advertising?” Be prepared with information on everything from the top platforms to the benefits of investing in video.
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