When I first entered the world of digital publishing, programmatic video advertising (and programmatic advertising in general) seemed like an almost impossible learning curve. It was definitely worth the effort, though. Video ads are an invaluable source of revenue for publishers, and programmatic makes the entire process of getting that revenue much simpler.
Let’s dig a little deeper into what programmatic video advertising is, how it works, and why every publisher should at least consider it.
What Is Programmatic Video Advertising
As you know, programmatic advertising is the automated process of selling ad space (or buying it, if you’re an advertiser), usually via a programmatic ad network. The process happens in real time and requires very little human input and effort. Needless to say, programmatic video advertising is a subcategory of programmatic focused on video ad formats.
How Does Programmatic Advertising Work?
On the surface, programmatic advertising may seem quite simple – you put your inventory up for sale, advertisers bid on it, and the highest bidder gets to place an ad on your website or app. But what goes on behind the scenes is actually a little more complicated:
- A user visits a publisher’s website and plays a video (or an outstream player loads).
- The website or video player puts the ad impression up for auction via an SSP (supply-side platform).
- On the other end, DSPs (demand-side platforms) place bids for this impression in a real-time bidding auction. Bids are only placed for ads that match the inventory (i.e. target audience, website context, CPM, etc.).
- The winning bid is awarded the ad impression, and the end user sees the ad on the publisher’s website.
As complex as this process is, it happens within moments. The most common auctioning method used in programmatic video advertising is video header bidding, which allows demand sources to place bids at the same time.
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Follow UsBenefits of Programmatic Video Advertising for Publishers
The popularity of programmatic advertising among publishers (and advertisers) has been on a steady rise for a while now. What was once a last resort for remnant ad inventory has now become the selling method of choice for publishers big and small. Within programmatic advertising, video ads are the reigning king, with over 50% of programmatic ad spend going to videos.
So why is programmatic video advertising so popular among publishers? Here’s a couple of reasons:
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It saves time – Publishers can save valuable time by focusing their revenue-generating efforts on programmatic advertising, as opposed to direct deals.
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It saves resources – Time equals money, and that’s especially true in business. Without the programmatic automation in place, there would have to be a payrolled team striking deals with advertisers.
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It targets the right people – Whether you prefer cookie-based or contextual targeting, programmatic can do both. It uses precise, real-time data to target the right audience for each ad.
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It is easy to track – In programmatic environments, both advertisers and publishers have access to detailed, real-time, actionable analytics (although this may depend on their platform of choice).
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It has potential for growth – Unlike direct deals, where CPMs are agreed on ahead of time, programmatic allows publishers to optimize price floors and increase their revenue potential in real time.
Want to learn more about price floor optimization? Check out TargetVideo’s dynamic price floor optimizer, part of the Yield Optimization Engine.
Programmatic Video Advertising Trends in 2024
If there’s anything we can all agree on when it comes to advertising, it is that it is an extremely dynamic industry. New trends emerge all the time, old-fashioned practices fade away, and there’s always a big new fad to chase. So what is the state of programmatic video advertising right now, and what trends should you, as a publisher, pay attention to?
AI and Automation in Programmatic
Artificial intelligence has been seeping into all spheres of the digital landscape, and ads are no exception. On the publisher side, AI is often used for automated optimizations, refining audience segmentation, predictive analytics, and more.
Cookieless Targeting Solutions
Although Google has put its plans to phase out third-party cookies on permanent hold, the search for innovative cookieless targeting alternatives has left its mark on programmatic advertising. First-party data, contextual advertising, and other solutions have found their footing and seem to be here to stay.
Programmatic CTV Advertising Growth
CTV advertising accounts for 10% of digital ad spend in the US, according to eMarketer. It is also expected to grow to 19% higher numbers in 2024 than it did last year, making it one of the fastest-growing advertising channels. Additionally, nearly 90% of CTV ad spend goes to programmatic, and the share continues to grow.
How to Get Started With Programmatic Advertising
Welcome aboard the programmatic train! I’ll assume you already have a website with available video inventory – be it in the form of instream or outstream video ads.
If you don’t have monetizable video content, but would still like to serve instream video ads, check out TargetVideo’s Managed Video Player.
Getting started might seem a little intimidating, but the right online video platform will make things much easier. Ideally, your platform of choice should be a one-stop shop for your programmatic needs. This means that ad demand, ad tech, analytics, video hosting, management, and distribution should all be included. And of course, let’s not forget a fast and customizable HTML5 video player.
Lastly, there might be some manual setting up to do. You need to configure the video player (although your platform might provide this service, too) and implement ad tags. Needless to say, you should also embed the video player on your website or app, track ad performance, and optimize accordingly.
How to Serve Programmatic Ads With TargetVideo
Monetizing your video content with TargetVideo is a simple and straightforward process.
First, log into your account and access the CMS. In the dropdown menu at the top of the screen, choose the site you want to monetize.
Then, navigate to Players and either create a new one or select an existing player to customize.
In the Set Player Behavior section, you can create a new player template that will include ad-serving capabilities.
Turn on the Enable ads option in the Ads section of the customization window.
By enabling Expert mode, you will be able to access additional settings, such as disabling the player if the user is using an ad blocker or setting the ad frequency.
Once you’ve set the behavior of your player, navigate to Set Player Ad Stack and either choose an existing ad schedule or create a new one.
If all of this sounds a little too complicated (I know it did for me when I was first starting out), the TargetVideo team is there to help set up your player for you. Alternatively, you can opt for the Managed Video Player, which comes pre-packed with ad-serving capabilities – all you have to do is embed it on your website.
Plug & Play Monetization
Solution Free & Easy Integration
Ad Revenue Maximization
Rich Video Content Library
Get Programmatic Ad Revenue With TargetVideo
Getting started with programmatic video advertising can seem like a daunting task for beginners. But as I said, with the right platform, it doesn’t have to be. TargetVideo provides an all-in-one solution for publishers looking to monetize their videos, websites, and/or apps through programmatic advertising. And if direct deals are more your jam, TargetVideo has got you covered on that front, too!
FAQ
1. What is programmatic video advertising?
Programmatic video advertising is a video ad trading method using an automated program to make the process quicker, easier, and more affordable.
2. What does programmatic mean in advertising?
The word programmatic in advertising denotes an automated process of buying and selling ad space using a piece of software, rather than through traditional methods such as negotiating.
3. Is programmatic advertising dead?
No, programmatic advertising is very much alive and thriving. Since it makes ad trading so much easier and more affordable for all parties, it is unlikely to die down any time soon.
4. How much does programmatic advertising cost?
The cost of programmatic advertising for publishers depends on the deal they strike with their SSP or ad network. For advertisers, the cost of programmatic advertising depends on the CPMs of the inventory they bid on.
