How Programmatic Video Will Shape the Future of Advertising

Trying to reach the right audience for your business can sometimes seem like more work than it’s worth, but what if we told you it doesn’t have to be a hassle? By using programmatic video advertising the hassle of reaching the perfect audience is put in the hands of a bot that finds the right audience for your product.

To learn more about programmatic video advertising and why it’s great for your business, keep reading below.

What Is Programmatic Video?

Programmatic video is advertising that uses software, codes, and data to determine which ads you should buy and how much you should pay for them. With programmatic advertising machines make these decisions rather than people.

Since machines now take the place of people, this time-consuming process and makes it faster and easier than before. These machines help you to buy ads for a great price and sell them for a decent price too.

Programmatic video can also help you target certain trends in advertising since you tell the bot buying them what you want exactly. You can use video ads on websites such as Youtube to target your ideal audience without talking to a salesperson.

Overall, the answer to what does programmatic video mean? is simple: it’s the real-time buying and selling of video ads.

How Does Programmatic Advertising Work?

Since programmatic video is bought and sold by machine automation, they use algorithms to evaluate user analytics. By evaluating user analytics the automation can determine what content is the most attractable to users. This means that the computers will direct the ads to people that will be most likely to click on it and buy your services.

The machine automation look at things such as user behavior, location, social engagement, time per visit, and engagement level. After the bot has found the best target audience for your programmatic video, it will place it on the social channel or website to attract traffic and sales to your website or company.

The Future of Programmatic Video

Programmatic video advertising has been evolving and improving along with all the technology in today’s age. Even though this advertising venue is already pretty accurate, the future will bring more accuracy to your campaign.

In the future, it’s not hard to believe that programmatic advertising will be the top advertising route. Currently, more than 50% of advertisers use programmatic advertising.

In the future businesses and people that use this type of advertising is projected to rise. This is due to the accuracy and reaches that programmatic video advertising provider.

It’s safe to say that in a few years programmatic marketing will be the mainstream way to market your business and products. This is due to the ease of the marketing style and the efficiency of driving traffic and sales.

Since programmatic video advertising is always improving, you can expect to see more accurate data projection in the future. Right now programmatic advertising is pretty accurate, but there can be some discrepancies. In the future, there will be little to no error meaning that your campaign will reach the right audience.

Since Programmatic marketing is the marketing of the near future for any business. We have outlined ways that programmatic marketing can help and a look into the future.

What Are the Benefits of Programmatic Advertising?

There are many benefits to using programmatic to drive traffic to your business. Below we have outlined the top benefits of going programmatic.

Increased Efficiency

Since machine automations are used to do most of the tedious work, there is less error than when humans did it. Also, by using programmatic advertising you are reaching the best audience for your product which is the most efficient to drive sales and traffic since your advertisement will reach interested people.

Since technology is always improving, it’s safe to say that efficiency will be next to none within a few years. The future is projected to have little to no error in this marketing avenue.

More Time to Focus on Campaigns

One of the nicest things about using programmatic advertising is that you will have more time to focus on future ad campaigns. Since most of the work is done electronically, you don’t have to put the manpower in. This leaves more time for you and your team to create the next ad campaign now and in the future.

Personalization

Using Programmatic video advertising can be very personal for both the user and your business. Programmatic advertising targets the best customer base that will most likely buy your product. This means that instead of wasting money to reach everyone in the world, you are giving people an add that relates to them.

As for your business, you can change your demographics, location, and time frame of the ad at any time. If the campaign is going well you can extend it, if not you can shorten it to put out the next ad campaign.

If you feel as if the demographic you selected for the bot isn’t driving the traffic you wanted, then you can go ahead and change it. Even the location can be changed to help you reach more people that will be interested in your ad.

Cross-Channel Reach

Since data drives programmatic video advertising, this means it’s not limited to one channel or website. With programmatic advising, your add will reach people on social media websites, mobile applications, and websites.

Feedback In Real-Time

What’s nice about programmatic video advertising is that it provides you with real-time data and feedback. This will show marketers how well their ads are doing by providing hard data that shows how many people click on the ad and how many sales are generated by the ad campaign.

This allows marketers to decide if they will need to pull the campaign due to it not creating the drive intended, or if they will extend it. It can also help to determine the direction of your next ad campaign.

Low Cost

Programmatic video advertising is based on cost per thousand or CPM. CPM will charge you per 1,000 impressions made.

Usually, CPM is a fraction of the price of direct buy. A direct buy will generally cost you $10 per CPM but paying per impression will usually cost you anywhere from $.50 to $2.

Impression Are Guaranteed

Most programmatic video advertisers guarantee that you will get the impressions you pay for. You and the seller will decide on several impressions and the price before the campaign begins.

This guarantee comes from the automations finding the right channels and target audience. Since they are targeting those interested in what you’re selling, you will reach your number of impressions agreed upon fast.

It’s Worth the Yield

Even though programmatic advertising is complex, it’s worth it in the long run. Since industry standards are forever improving and integrations are painless it’s easy for you to create or your third-party to create a programmatic ad. There is a lot of thought and planning that goes into creating your campaign, this is the complexity of the process.

After you have made all the decisions on your campaign, the hard part is over. Now it’s time to sit back, launch the ads, and watch your yield rise. All the time and effort put into the advertisement will pay off when you see sales and traffic rise.

The Downsides to Programmatic Video Advertising

You now know the benefits that come with this type of advertising. But, like with any pros, there are cons that follow. Below are some of the downsides to programmatic advertising.

Relying On Third-Parties

One of the downsides to programmatic advertising is that you will be relying on and working with a third party. You should know beforehand how the third party business or application stores and processes your data. This will help you ensure your business’ data will stay safe and to ensure your ads reach the right audience.

Limited Reach

Depending on what company or app you use for your programmatic advertising, your reach may be limited. Each company and app have a portfolio. You can think of this portfolio like an address book since this list consists of the place the app or business can post your ad.

If you choose a business or app that doesn’t have a diverse portfolio, you may be subjecting your ad campaign to a limited reach. Before deciding on a company, check out their portfolios to ensure you will be reaching the audience you want.

Can Be Annoying

We have all been there, you’re watching a video and right at the good part, an ad pops up, disrupting your viewing. Sometimes it’s annoying and other times you could care less that a 30-second ad popped up.

But when creating your campaign it’s important to keep in mind that some people will not continue to watch a video if an ad pops up in the middle. Others will keep watching and not care about it.

You want users to watch your ad and even click on it. Before creating your campaign you should realize who you’re marketing to and create non-disrupting ads.

Ad Fraud

Since you are placing your ads online, there is a chance you can be hacked. Other automations can hack into your ad and drive prices up to sabotage your campaign. Usually, there are safety measures put into place by the business or app you use, making this less common.

Types of Video Ads

We have talked about what programmatic videos are and their pros and cons, but what types of programmatic videos are there? Below we have outlined the different types of programmatic videos so you can choose the best one for your business and ad campaign.

Out-Stream

Out-stream advertisements are the ads that pop up in the middle of an article or blog post. These ads are similar to pop-ups in the way that they can have a controversial format.

Readers will either keep reading once they see your ad but some people stop reading once they see an out-stream ad. Know who your audience is and be cautious when using out-stream ads.

In-Stream

You know when you go to watch a Youtube video and before your content begins a video advertisement pops up? If the answer to this question is yes, then you are familiar with one type of programmatic advertising.

If you aren’t familiar with in-stream advertising, these ads are one that comes before a video or even interrupting a video. They can also play at the very end to your target audience.

In-Display

In-display ads are most popular with Youtube videos. These adds will display on the top of your feed.

These ads do not autoplay and will appear below the video’s title. To see these ads the user must physically click it to see what the ad is about.

These ads can also consist of banners and in-feed advertisements. These can be placed on websites and integrated into social media.

Why You Should Use Programmatic Video Advertising For Your Business

Now that you have a better idea of what programmatic video advertising is and the promising future of the business, it’s now time to think about using it for your business or to promote your products. Using programmatic advertising will help you in many ways, the first being that a third-party is doing the outreach, giving you more time to focus on your business.

Programmatic advertising will help your campaign reach those that care about your product and business. It cuts outreaching those who don’t care, saving you money and driving sales and traffic onto your website.

Overall using programmatic video advertising is a great choice if you want to reach a new audience, appeal to your current audience, and to bring more people to your website. If you’re launching a new campaign you should use programmatic advertising to help boost your profits.

Go and Create Your Ad Campaign

The advertising world is vast, but we have tried to make programmatic advertising crystal clear. You now know what programmatic video advertising is, what types there are, and the pros and cons.

It’s now time to figure out if programmatic advertising is right for your business or product. For more information on advertising check out our website here.

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