In the galaxy of digital space, change is the only constant. The shift in trend from a television ad to a programmatic video is something marketers have been fighting against for decades. We’ve far progressed from just pooling creative juices with a pretty face and product-flattering scripts. Advertising today has seemingly transformed into a magic eight ball with clairvoyant capabilities. One minute you’re looking for a new stereo system, the next, you see different brands of them everywhere on your screen.
Yes, its all about marketers reaching the right audience at the right time in the commerce world, spooky as it may seem to the consumer. When the planes of time, space and eager buyers align, conversions go up. We’re not denying the pain of learning the whole new language of programmatic advertising. We’re just saying that it sometimes takes time to save time. Programmatic video advertising might just be the tool you need to build a whole new sustainable and less tedious system of marketing. All you need to do add to the mix is your own brand strategy. Ready? Grab a coffee and ease yourself in while we help to demystify the basics of programmatic video advertising here.
But if you prefer to watch a video instead, click here:
What is Programmatic Video Advertising?
Programmatic video advertising, simply put, connects content providers or advertisers to consumers in real-time through publishers. Almost like the stock market, advertising space can be bought and sold in real-time through digital platforms. And it’s not as complicated as it sounds to manage. The entire digital auction uses automated bots and happens behind the scenes with the blink of an eye, or rather, the load of a page. All marketers have to do is set detailed prerequisites such as defining their target audiences and their budget. The program takes care of everything else by matching suitable ad spaces to your ideal consumers’ screen simultaneously over different platforms.
Why Learn the Ropes?
Mari Smith said, “Content is king but engagement is queen. And the lady rules the house.” Today’s trending effective marketing strategies are all about speaking with your consumer instead of telling them things. Here are some paramount reasons why you should get on board programmatic video advertising.
Video is the Future
And the future is here now! Around 75% of video ads are programmatic today, and the trend is still increasing. Why choose videos over all other mediums? Because marketers are well aware that 95% of a promotional message is retained with videos, as compared to 10% when read. Modern-day attention-deficient consumers find moving pictures and sound more captivating than a boring text-heavy page. Furthermore, the accessibility of mobile devices has made videos a marketer’s wet dream. 6 out of 10 people prefer watching videos online rather than ads on television today, and 90% of video content is watched on mobile phones. If these whopping statistics don’t convince you, check out this compelling article on video marketing.
David Beebe said, “Stop interrupting what people are interested in, and be what people are interested in.” That, or simply direct your content to the right crowd. With programmatic video advertising, marketers can be very specific in the demographic of consumers they are looking to target. It’s no longer just about reaching the masses, but effectively translating conversions. Here are some key targeting parameters to consider when you strategize for your campaigns.
1. Demographic Parameters:
The more you understand your target market, the more you can skew content towards their needs, wants, and beliefs. Factors such as behavioral patterns, age, income, education, and gender are important to consider so you can effectively reap better conversions.
2. Contextual Targeting:
Programmatic advertising can help sieve out your perfect target audience based on their interests. It considers their search tendencies based on history in specific categories such as beauty, news, sports, and entertainment. For example, if you are selling a new skincare product, programmatic advertising can help you to target individuals who visit webpages on similar topics such as ones with beauty tips. These are the potential consumers that may be more likely to consider buying your product.
3. Geographical Location
If your product or services is only available in a few countries, buying ad space beyond that would be a waste of marketing budget. With GPS technology today, programmatic advertising can help you to zoom in on specific geographical locations that you might wish for your video to appear in. To add to that, geo-fencing can be a very effective strategy especially for targeting mobile users. You can pursue potential consumers with your video ad, who happen to be in the immediate radius of your store so you don’t lose out on a sale opportunity.
As human beings, we all have temperamental moods and quirks. A product that we may consider interesting but non-essential at one moment might become a greatly desired need with a little more consideration, or at the next glance. Programmatic video advertising can help you to persuade this special group of potential buyers who have a higher chance of transforming from being just a lead to a conversion. It also empowers marketers to remind existing customers of their brand, in hopes that they stay your loyal patron.
A One-Stop Platform
Time is money. Whether you’re outsourcing your marketing services to an external agency, or paying an in-house employee, you want to get the best ROI with every buck you invest. If you’re still buying video advertising space one website at a time, you need to get with the program, literally! Programmatic video advertising is revolutionary because it allows marketers to buy ad spaces on thousands of sites at a time. Reach quality consumers in larger quantities in a shorter period of time. Advertisers can now channel the saved time and money into tailoring creative content for specific target markets and rethink effective targeting strategies.
Are people watching your video ads? Most marketers know the concept of A/B testing when it comes to advertising. Say goodbye to the good old days when you have to wait till the end of the month to tabulate sales numbers in order to evaluate the effectiveness of your ad. Because programmatic video advertising reports live statistics instantly, you’ll be able to analyze in detail, your consumers’ interaction with your ads. Such will allow you to keep up with agile consumer trends and adjust your campaigns in real-time to improve your ROI.
Where Can My Videos Appear?
Did you know YouTube streams more than 500 million hours of content daily? That’s approximately 570 centuries worth of video every 24 hours! Videos are proven the preferred medium by consumers, driving 300% increases to website traffic. But aside from YouTube, where can your videos reach consumers?
- Video Platforms: YouTube is the second most visited site ranked after Google. But there are also other video streaming platforms that you can advertise on. Such include Vevo and Vimeo.
- Social Media Platforms: Popular platforms include FaceBook, Instagram, and LinkedIn that support video formats.
- Websites: Reach a wide yet targeted audience surfing the internet and funnel traffic to your own website.
- Mobile Devices: Mobile applications in different categories such as games, sports, and music are today a popular channel for video ads.
- Smart TV: Also known as connected TV advertising, a television connected to the internet can play video ads during content streaming or while loading a media app.
- Audio Streaming: Short programmatic videos can be streamed on audio apps such as Spotify and Pandora.
Basic Jargon of Programmatic Advertising
Now that you know a little more about what Programmatic video ads are, let’s dive a little deeper. There are many head-scratching terms used in programmatic advertising that can leave noob-dabblers frustrated. To ease you in, we decode some of the common ones here:
Digitally speaking, publishers such as website and app owners sell ad space to advertisers who are marketers such as yourself. The inventory is the amount of space up for sale by the publishers. It is often calculated on a monthly basis. There are fundamentally 4 different types of programmatic inventory deals, namely open auction, private auction, preferred deals, and automated guaranteed. You can learn more about each of them here.
Instream Video Ads
If you’ve been on YouTube, you would have seen ads that are played before, during, and after the content you are watching. These are known as instream ads. Instream ads are effective because the audience is already in the mindset of watching video content. Kind of like commercial breaks during a television program, it is less disruptive and more likely to gain viewership if your ad is appealing and relevant.
Outstream Video Ads
Outstream video ads appear on non-video streaming sites. Such include blogs, websites, social media, and apps. Spaces like these are usually easier to obtain compared to instream video ads. A web surfer can come across your ad while scrolling through any digital content. Because of the magnitude of platforms it utilizes, the advantage of outstream video ads is its vast reach.
Short for Supply-Side Platform, SSP is an automated technology used by digital publishers to manage their advertising inventory. The platform allows media owners to set prices, sell ad spaces as well as receive revenue from buyers. Publishers through SSP can dictate which advertisers can and cannot buy their inventory. Behind the scenes, it opens up ad impressions to as many potential buyers as possible through real-time auctions, so that the publishers can earn the highest possible rates.
Demand-Side Platform or DSP is the other end of SSP. It is the automated buying platform marketers and advertising agencies use to purchase ad spaces efficiently, and as affordably as possible. There are many DSPs available to choose from. Each one operating at different costs while offering varieties of ad channels and device accessibility to your video ads. Advertisers can set criteria through DSPs such as target parameters and intuitive bids on opportunities (reaching publishers and consumers) that match the prerequisites. In addition, DSPs contribute to performance metrics in real-time, updating per millisecond. This allows advertisers to tweak their targeting strategies according to the live market.
While SSP is tailored to sellers and DSP to buyers, ad exchange lies in the middle of them both. It is essentially the digital market space that facilitates and links both publishers and advertisers through RTB.
Real-Time Bidding or RTB is the process of instantaneous and programmatic auction. The video ad of the highest bidding advertiser loads onto the publisher’s site in milliseconds. The price of each impression is based on what buyers are willing to pay in real-time.
Creating your Programmatic Video Content
A common myth amongst marketers is that programmatic advertising restricts creativity. We’d like to bust this mindset by setting things straight. In truth, programmatic marketing simply makes the “cold-calling” life of marketers easier. This means we no longer have to purchase ad space one website at a time. It should never restrict your creative execution. Aside from coming up with more innovative strategies to target consumers for better conversions, it also creates more time for marketers to conceptualize compelling and effective video content that resonates with the target audience.
Many businesses tend to have a general idea of the content they wish to create but fall short on the skills, equipment, and capabilities to produce quality videos. Here’s when outsourcing comes in handy. Whether you’re looking to localize your ad by dubbing, subbing, voice overs or scriptwriting, online platforms such as this one can reliably bring your concepts to fruition. While such services are highly competitive in the market, this one comes backed with client testimonials, is individually quality checked, has a quick turnover time, and is affordable. Whether its animation, motion graphics or editing, you can now also go full-stack and outsource your entire video ad here. Leave it to the pros and free up your time so you can focus on more vital aspects of your business!
Get with the Program!
Bill Gates said, “Automation when applied to inefficient operation, will magnify the inefficiency.” Programmatic video marketing is indeed a powerful tool, but only if it is harnessed correctly. With the right strategies in targeting, budget planning, and placements, you can now speak to your consumers directly and personably. Hop on board a programmatic video today!