Why Your Business Is Failing Without Programmatic Video Advertising?

Programmatic video advertising is rapidly gaining traction, and it’s no surprise why. Many are embracing this innovative advertising approach as a means to drive genuine engagement.

According to eMarketer, US advertisers have witnessed substantial growth in their spending on programmatic video advertising. In 2021, spending amounted to $52.17 billion, a figure that surged to $62.96 billion in 2022. Projections suggest this upward trend will persist, with anticipated spending reaching $78.45 billion by 2023. Let’s understand about this billion-dollar industry.

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. 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.

Also Read: What is Cross Browser Testing and Why is it Important?

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 numerous advantages it offers. Let’s dive in!

Data Leverage

Programmatic video ad 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.

Value Added Content

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.

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.

Increase Brand Identity and Awareness

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.

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 interests and pastimes.

If a programmatic video ad 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 Does Programmatic Video Advertising Work?

Programmatic video ads operate similarly to other types of programmatic advertising, where ads are bought and delivered automatically through programmatic advertising platforms. Here’s how it works:

1. Define Audience and Goals: Advertisers specify their target audience and campaign objectives.
2. Publisher Selection: The programmatic platform utilizes data and algorithms to choose the most suitable publishers for the ads.
3. Optimal Timing: The platform determines the best times to display the ads for maximum effectiveness.
4. Real-Time Delivery: Ads are then delivered in real-time, leveraging data from various sources such as cookies.

Compared to traditional methods of purchasing video ads or other digital ads, programmatic video ads offer a more efficient and effective delivery process, ensuring that ads reach the right audience at the right time.

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 ads to increase their ROAS return on ad spend) by 30x. AirAsia launched a Facebook marketing campaign 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 has revolutionized the way brands reach their target audiences in the digital landscape. By leveraging automated technology and data-driven insights, this advertising offers precise targeting, real-time optimization, and cost-effective campaigns. With its ability to deliver personalized and engaging video content across multiple devices and platforms, programmatic video ads have become an essential tool for marketers looking to maximize their reach, engagement, and return on investment.