Although still in its younger years, programmatic video is already winning a big portion of the digital advertising attention. According to a recent study programmatic video is expected to grow five-fold in the next five years, reaching €2bn across Europe. ( the full report Video Goes Programmatic: Forecasting the European Online Video Advertising Landscape, you can find here). There is a long road ahead for programmatic video to reach the now established presence of its display ad bigger brother. But as publishers and buyers alike are turning more to its merits, we decided to lift-up the curtain for those of you still wondering what it is and let you see why programmatic video has the potential to be more than just a trend.
First up - what is it? As the title “programmatic” suggests, automation is an essential part of its nature. Programmatic video is a video inventory that is bought and sold through software. It bares the same definitive features of all programmatic buying mediums - real-time capability and better consumer targeting.
Interesting popular observation is that one of the reasons programmatic video has grown so much is partly related to the influx of internet users. With the high-speed bandwidth that is now easily affordable, the number of users watching online video is growing, and among those large portion are even choosing to follow all their TV programmes and movies on online streaming channels. This trend is not something to be overlooked as it becomes an ocean of possibilities for marketers to engage with their consumers in a more interactive and engaging way.
As we mentioned above, as opposed to the traditional digital video advertising, the programmatic video is also characterized with real-time capability and enhanced targeting options. Akin to the programmatic display ad, it uses real-time data to find the right consumers and get your video to them at the right time. For example, if a user is searching for a new laptop, a high-tech vendor can buy a digital video ad space specifically targeted to that potential consumer.
Also, thanks to the advanced programmatic technologies now available, programmatic video brings an additional insight into your consumer's journey. This valuable information helps advertisers build even more unified profile on their audience preferences and purchase behaviour. By adding video in the advertising stack, marketers gain more flexibility and real-time relevancy to their consumer engaging communication efforts.
The most attractive feature of programmatic video however is that it has the potential to take marketers on the next step to creating the holy grail of modern digital advertising - a true omnichannel experience. With programmatic video the distinctions between different screens is nearly erased, allowing the advertising message to reach multiple devices with a single transaction. Desktop, tablet, smartphone - they all become a medium to the same intended message.
Programmatic video is indeed on the right track to success. It opens a myriad of possibilities for marketers - enriched content marketing, better consumer insights and advanced real-time relevancy. It is no wonder then that this year programmatic video is among the featured topics of one of the most important digital events in the world - dmexco. And as the interest of both the buy-side and sell-side is increasingly turning to programmatic opportunities, we can be positive that programmatic video will soon become essential part of leading businesses’ digital advertising strategies.