What You Need to Know About Programmatic Video Advertising

A recent survey found out that about 49% of people watch an average of five videos daily. 

Video ads are gaining more traction than most other forms of advertising. Videos prompt significant attention, unlike written content and audio.

Brands are increasingly embracing videos to capture the attention of their target audience. 


Programmatic video advertising refers to the use of bots or software to buy online spaces for digital video advertising. It’s one of the digital advertising techniques taking most industries by storm today. 

Programmatic advertising has a broad scope. Read this guide to learn about programmatic video and ways it can benefit your business. 

What Is Programmatic Video Advertising?

As the term implies, programmatic video ads refer to the ads purchased programmatically through AD exchanges, DSPs, and SSPs. 

In simple form, programmatic video advertising can be defined as the automated transactions that involve selling and buying advertising online. The practice takes advantage of an algorithm that has enhanced cost efficiency and targeting.  

Traditionally, the process necessitated one to request proposals. You also had to work with human negotiations before inserting orders manually. 

With the advent of technology, the automated process can now take place within a second. 

Programmatic video advertising has two ends, which include sellers and advertisers. Sellers hope to gain value from their content. Advertisers, on the other hand, apply software to make proposals and purchase video ad space depending on the criteria received by the bots.

Considering that programmatic display advertising is relatively new, some digital marketers are yet to understand how the technology works. 

If you’re in this category, don’t fret. Check out this systematic guide, simplified to your understanding.

The Process of Programmatic Video Advertising 

If you’re using programmatic advertising, the process starts when a viewer lands on your website. 

The publisher will use the supply-side platform (SSP) to list the advertisement space for the viewer. The SSP represents the publisher, and it takes the form of a seller.

The SSP informs advertisers of all the attributes of the site and the nature of the ad space to prompt DSPs to make their proposal. The seller then promotes the ad space to potential buyers. 

After receiving all the information relating to the ad space, the SSP evaluates the cookies. 

The SSP aims to establish factors such as demographics, interests, and geography. With this info, it is possible to customize the offerings according to the needs of the buyer. 

In the next step, the demand-side platform (DSP) analyzes the information that the SSP provides. The DSPs acts on behalf of the advertiser in choosing an ad space that is in line with the target parameters and advertiser’s budget. It further assigns a value on the ad placement depending on the user and website’s attributes.

The bid placement by DSPs is real-time, which explains the basis of the phrase real-time bidding in programmatic. 

The SSP analyzes the received bids and selects the winner. Some of the commonly used bid strategies include the Client-side, Header bidding, and Waterfall bidding.

Once the SSP has picked the winning bid, it displays the ad on the site of the publisher. This entire process occurs within milliseconds. 

This form of advertising saves time and it’s quite efficient. 

If you’re still unsure how to go about programmatic display advertising, you can seek digital marketing services. The professionals will help you with all your digital marketing needs, from SEO to email marketing.

Why You Should Consider Programmatic Video Advertising 

Initially, human beings were handling the sale and purchase of ad space. 

The process was not only slow but also highly inefficient. Many negotiations and meetings had to take place before an ad could get an online publication.  

Worse still, making any changes to an ad was a nightmare. 

If you wanted to change your targeting, you had to start the negotiation process from scratch. With the growing number of publishers, advertisers couldn’t manage this hectic process. 

Fortunately, automation led to the development of programmatic advertising.

The benefits of programmatic video advertising are worth pursuing. Here are some of the reasons you need to embrace this new advertising technology. 

1. It Allows Proper Ad Budgeting 

In 2019, estimates showed that digital ads in the US were accounting for about $130 billion. 

Companies are allocating a significant amount to digital advertising. As such, it is prudent for marketers to use the allocations on strategies that almost guarantee success. 

Programmatic advertising is the real deal if you want to use your advertising budget well. 

The platform allows you to target viewers, in the right place, and with a suitable message. Through the programmatic, you will eliminate waste, which is usually in the form of uninterested viewers.

2. Wider Reach

Programmatic advertising depends on data. 

You can benefit from the cross-channels, which means a bigger audience. These targeted ads can be on desktop, TVs, mobile, in-apps, and tablets. 

The digital touch-points keep increasing, leading to endless possibilities for programmatic adverts.

3. Real-time Measurement

You don’t have to wait for hours or days to measure the performance of your ad in programmatic advertising. The results are real-time. 

Consequently, you can optimize your campaign based on the outcome of the ad. 

With programmatic advertising, advertisers can adjust and optimize their adverts as necessary. Besides, it is possible to have an oversight on ad spending.

4. Collection of Valuable Consumer Data 

Marketers can collect comprehensive and useful data about their viewers. 

The ad-buying algorithms learn and adapt through the gathered data. Through the learning curve, marketers can modify their adverts after checking out the key metrics of prospective customers. 

Programmatic Video Advertising Is the New Face of Digital Marketing

Implementation of programmatic video ads might seem complicated, but embracing this technology will make your marketing more effective. Once you get it right, the results on your brand awareness will be evident.

Your video ad should be short and captivating. Including entertainment will capture the attention of the user. Ensure that you create the ad video with the target audience in mind.

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