What Marketers Need to Know About Programmatic Video

Originally Published in: AMA Toronto

May 27th, 2015

Programmatic advertising has been hyped as a tool mainly for display and, historically, hasn’t been seen as being as effective for brand advertisers. Traditionally, video has been used in television advertising to engage consumers on an emotional level and that approach has been successful for decades. However, consumer habits have changed and advertisers need to evolve their video strategy to keep up with the pace of content being devoured online. According to eMarketer, the time spent per day by U.S. adults consuming video through TV is declining, while digital video consumption is on the rise:
  • In 2011, the time spent with video on digital devices totaled 21 minutes daily.
  • In 2015, U.S. adults are expected to spend an average of 76 minutes daily with video on digital devices.
There is a downward trend in the TV revenue slope and, according to IAB Canada, brands are investing more in digital media than television for the first time in history. Programmatic video has arrived and is growing faster than predicted. Programmatic video will grow by over 200% this year in the U.S. alone, eMarketer declares, and ad spend in this category will reach an astonishing $3.9 billion by 2018. Major brands including Oreo and Budweiser have started to lead the charge in this sector, proving that programmatic video can be an effective marketing tool. Here are three things marketers should know about programmatic video: 1. Transform branding campaigns Programmatic isn’t just about direct response anymore. Programmatic video creates a chance for brands to deliver memorable, unique and interactive creative in a compelling way in real-time, across devices. Adding quality pre-roll video into your programmatic marketing mix is an effective way to grab the attention of your audience, increase reach and enhance engagement. Marketers can still offer direct response offers to consumers in stores, while simultaneously building brand awareness, engagement and loyalty. 2. Programmatic video goes mobile As consumers make the move toward mobile-first media consumption, online video content will become even more important. Marketers are still learning the most effective way to engage with mobile advertising and video advertising programmatically. Mobile video advertising in particular appears to be gaining momentum as the fastest-growing category in digital media spend this year, followed by desktop video according to a recent BrightRoll Survey. The rapid growth in mobile use is well documented, but data in the programmatic video category has seen 350% increase in requests on mobile video impressions said BrightRoll Founder, Tod Sacerdoti at the 2015 BrightRoll Video Summit in NYC. Mobile measurement tools are improving and standardization is starting to happen around creative units for this medium. As these improvements are made, demand in this category is likely going to increase, as brands work to keep pace with the evolving media consumption habits of their consumers. 3. Data-Driven Measurement Matters Measurement matters to marketers and programmatic video ads work well for brands because, not only are they targeted to be highly relevant to the viewer and often interactive, but they are measureable in a way that allows brands to track response and engagement patterns, which isn’t currently possible with TV ads. More granular data sets have an important effect on creative as marketers gain key insights that evolve marketing strategies across channels and devices. Programmatic video will not likely replace linear TV advertising for quite some time and while the implementation of programmatic TV remains in the early stages, programmatic video ads are already leading the way. Just as programmatic became popular in display; programmatic video is gaining momentum because of its efficiency and measurability. This is allowing marketers to target audiences instead of ad space. The ability to measure digital campaign results on a granular level is there, producing vital data that, when used along with other tactics in programmatic across platforms allows marketers to execute campaigns that move seamlessly across channels, finding the right audience, at the right time, in the right place. According to a 2014 eMarketer report, advertisers and publishers spent $700 million on programmatic video and that figure is expected to triple by the end of 2015. When incorporated into a multi-channel strategy, programmatic video delivers the emotional effectiveness of a TV ad with the efficient performance of digital, elevating the connection your brand makes with the modern, ‘always on’ consumers.

Written by:

Nikki Hawke

CMO at The Exchange Lab


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