Get With the Program: What Is Programmatic VOD?

ad campaign

Get With the Program: What Is Programmatic VOD?

Technology is changing the way we do everything. From vacuuming the house to driving our cars, our everyday lives have been influenced by new innovations.

One of the biggest changes we’ve seen in recent years is in the way we watch TV. VOD streaming services are the norm now. People can get the shows they want when they want them.

And, they can do it all right from the comfort of their own homes.

If you’re wondering “what is VOD”, you’re not alone. But you’re already familiar with the concept. You just haven’t heard the technical name for it yet.

Our hope is that by the end of this article you’ll see how useful programmatic content can be. You’ll also be prepared to survive in the new wave of digital marketing.

Let’s get going!

What Is VOD?

VOD is an acronym that stands for Video on Demand. This is the way that most people are consuming their TV content these days. Like we mentioned earlier, most people are familiar with this concept.

VOD is the technical term for the Hulus, Netflixes, and Amazon Primes of the world. It’s really not complicated when you break it down. VOD stands for Video on Demand. So, a VOD service is any service that provides you video…on demand.

It doesn’t matter what company powers it. If you can get video content whenever and wherever you want it, you’re using a VOD service.

What Makes VOD Programmatic?

Now you know the basics of VOD. But, much like anything else, VOD has evolved over time. We’re now entering the era of what’s known as programmatic video.

Programmatic VOD is the combination of two modern technologies. It combines VOD digital streaming services with artificial intelligence and machine learning. Programmatic VOD essentially “learns” the viewing patterns of its users and provides them with content and ads that are tailored to their personal habits.

Scary? No, not at all. It’s actually making TV a much more enjoyable experience. Again, this is something you’re already using. Have you ever watched a show and then Netflix says, “Since you watched that, you may also like this”

That’s programmatic VOD. Netflix is using AI and machine learning algorithms to “think” for you. It’s helping you sift through the thousands of hours of Netflix content.

AI is essentially curating Netflix’s content for you to bring you more of what you like. The hope is that you’ll sit in front of your TV longer if you’re constantly presented with shows that interest you. And, based on recent statistics, it seems to be working.

Advertising Becomes Programmatic

Marketers can use the same technology Netflix uses to keep showing you the content you like. 

Years ago (actually not that long ago), marketers would have to interact with other humans to buy media space. Shocking, right? This human interaction made media buying a necessary industry.

Media buyers would talk to their network of broadcast companies and negotiate prices on ad space. But, thanks to machine learning and AI, all of that’s changed now.

Most of the video ads placed now are done programmatically. Algorithms will show you particular ads based on your previous browsing habits, buying habits, and the content you choose to watch.

Programmatic Ads Leverage AI

In this programmatic model, the people are removed. AI Bots are the ones that are buying the ad space now. No more media buyers are necessary.

The bots buy these ad slots based on pre-determined criteria. You, as the ad buyer, set up some parameters. You select what type of audience you want to target, what your budget amount is, and you give the platform access to your ads.

From there, you sit back and let the bots work their magic. The AI and machine learning program will take your ad parameters and engage in real-time bidding. The goal of these bids is to get your ad in front of your ideal customer.

This is the same way Google PPC ads work. The highest bidder for a particular keyword or keyword phrase gets their ad shown. Since that user is already searching for your chosen keyword, you already know they’re an ideal customer for your business.

What’s most amazing about this technology is the speed. All of this AI bidding happens within a blink of an eye. In the time it takes to load your Google search results, the bidding has taken place and the winner’s ad is being shown to you.

It’s kind of cool, right? Now you know what’s going on behind the scenes every time you search on Google.

The Benefits of Programmatic Ads

In theory, this method of advertising is much more effective. Machines are much more effective at communicating than people are. They can easily take the details of your ad campaign and make sure it gets in front of the right customers.

Machines can also increase the precision of your ad campaigns. Increased targeting capabilities allow your ad campaigns to perform better. You can decrease your ad spend while increasing your conversion rates at the same time.

But that’s just one of the benefits of leveraging programmatic ads. Let’s take a more in-depth look at how programmatic VOD can help you in your business.

Programmatic VOD is Effective Across Channels

Programmatic VOD is different than traditional video advertising. It works on data. This means that the same data can be used across a variety of channels.

The same audience that can be targeted on Youtube can be targeted on Facebook and Vimeo. And, since all devices are connected to the internet these days, you can even cross devices as well.

The same video can be distributed on a tablet, PC, laptop, TV, and smartphone all using the same data.

Advertise With Less Waste

Businesses can use programmatic advertising to advertise more effectively. The ads you run through programmatic VOD aren’t the same as traditional video.

Traditional video marketing is a guessing game. You have to build your customer avatar and then purchase ads during a time slot when you think they would be watching TV. Programmatic ads don’t leave anything to chance.

Programmatic ads run off of behavioral data. They don’t run off of time slots. This means you can target more effectively based on behavior patterns. Now, your business isn’t relying on a “lucky guess” when your ideal customer might be watching TV.

Being able to hone in on your ideal customer in this way means your ads run more efficiently. You’re not wasting money running ads that don’t convert. And, you’re making more money by getting in front of your ideal customer a higher percentage of the time.

It’s a win-win!

VOD Cuts Out the Middle Man

When you use programmatic media buying, you’re leveraging algorithms to do all of the heavy lifting. Marketing agencies can save tons of time and money by not dealing with in-person media buying.

There’s no more need to build relationships with media buyers and advertising sales teams. The whole process of marketing and advertising becomes more efficient. 

All you need to do is provide the data. Once the AI and machine learning algorithms have enough data on your ad campaign, they can do the rest. 

This touches on the bigger issue of robots and technology taking over human jobs. Many people think that they’re going to be out of work because AI and machine learning can do complex tasks like running ad campaigns.

This couldn’t be further from the truth. We actually see this as a good thing. The fact that AI and machine learning can do all of the heavy lifting means more for humans.

Now, the human members of your team can focus on the truly “high-dollar” activities in your business. They don’t have to focus on the mundane tasks of buying ad space. You’ll get more done and you’ll probably have happier employees as well.

Detailed Reporting

The key to any marketing campaign is measuring metrics. Business owners and marketing managers need feedback on how their campaigns are performing. If you add in the human element at this step, it could make things more complicated.

Programmatic VOD ads will allow you to get direct feedback on how your campaigns are performing. The reports generated are data that are communicated from machine to machine. There is no margin for error here.

You’ll be able to tell exactly how successful your campaigns are. You’ll also be able to tell more quickly than with traditional marketing campaigns. This is because you can see updates to your campaign metrics in real-time.

Now you and your team can make faster decisions on which campaigns to kill and which campaigns deserve more of your attention.

Campaigns You Can Adjust On the Fly

As your campaign runs you can change your information in real-time. If you think you need to target a different audience, you can make those changes within your ad campaign dashboard.

Most platforms offer you dozens of data points you can change to hit your target audience. You have the ability to adjust things like age, household income, interests, hobbies, location, and much more.

This gives businesses more agility with their advertising than they’ve ever had before. You can change your entire ad-buying strategy with a few clicks of the mouse. There’s no need for lengthy meetings or negotiations. 

Things to Look Out For

Programmatic advertising is a great business tool. It goes well beyond the traditional advertising methods of just a few years ago. But, just because it’s a great improvement doesn’t mean it’s not without its challenges.

There are a few potential disadvantages you’re going to want to consider when running your programmatic ad campaigns. Let’s take a look at them below.

Loss of Control

Some programmatic ad platforms are ad networks. This means that once you set your ad parameters, it’s syndicated out to a bunch of different platforms. While the plus here is that you hit a lot more channels, it can result in a loss of control over your ad’s performance.

The reporting you’ll see on your dashboard will be a general idea of how the ad is performing. You may not be able to see how the ad is performing on each specific channel.

It’s important to know what type of platform you’re working with. You should also decide what level of control you need for your ad campaigns. How granular do you need to get in your industry?

If you can still perform well with only “high-level” control, an ad network may not be a bad place for you to be. As the saying goes, “to each his own”.

Potential Fraud

The internet is an amazing resource. Sometimes it can be too amazing. If you release something on the internet, chances are someone will try to hack it.

The same goes for programmatic marketing. There have been instances of hackers using bots to drive up ad spending. Some businesses may do this to try and drive any sort of competition out of the market.

But, there’s good news on the horizon! As the programmatic ad technology becomes more sophisticated, safety measures are being put in place. Hopefully, in the not-so-distant future, people maliciously manipulating ad spending will be a thing of the past.

Programmatic VOD Is the Future

Programmatic VOD is changing how we interact with the world around us. From “showing us” our favorite shows to changing the ads we see, AI and machine learning are making our internet world more targeted.

If you’re a consumer, this ensures you get more of the products you love. If you’re a business, you need to get in on this trend.

If you have any questions on how to put programmatic VOD to work for you, contact Media Shark today.

Related Posts

YouTube Ad Revenue Calculator
YouTube

The Ultimate YouTube Ad Revenue Calculator

Whether you’re just starting out or already working with a strong following and viewership base, understanding YouTube ad revenue can be tricky, especially if you

digital marketing budget
Marketing Agency

How to Make a Digital Marketing Budget

How to Make a Digital Marketing Budget In 2020 the digital marketing and advertising industry was estimated to be worth more than $350 billion. By 2026

digital marketing ads
Marketing Strategies

Making Your Digital Marketing Ads Stand Out

Making Your Digital Marketing Ads Stand Out: Design Tips That Work Around 5 billion people (63% of the population) worldwide use the internet. For almost any business

instagram vs tiktok
Marketing Strategies

Marketing on Instagram vs. TikTok: Which Is Better?

Marketing on Instagram vs. TikTok: Which Is Better? There’s a reason why there are nearly one million marketing specialists found in the United States. These days, it’s

traditional marketing vs digital marketing
Marketing Strategies

Traditional Marketing vs. Digital Marketing

Did you know that more than four billion people regularly use the internet? Keep reading to learn more about the differences between traditional marketing vs. digital

diversity marketing
Marketing Strategies

What Are the Benefits of Diversity Marketing?

What Are the Benefits of Diversity Marketing? Diversity in marketing is not just about employing people from different backgrounds, it’s also about using a range

Social Media Ads
Marketing Agency

Social Media Ads Ranked from Best to Worst

Social Media Ads Ranked from Best to Worst Social media is one of the most impactful developments of this century, with more than 70% of Americans having

CPM rates
Media Shark

What YouTube Niches Have the Highest CPM Rates?

What YouTube Niches Have the Highest CPM Rates? Youtube made $19.7 billion in revenue last year, mainly by selling advertising space. As a platform that fosters connections with

youtube trends
YouTube

6 Important YouTube Trends for Businesses

6 Important YouTube Trends for Businesses The world’s largest video-sharing platform, Youtube, boasts a staggering 1.9 billion monthly users, with over 5 billion videos watched every day.

youtube seo
YouTube

YouTube SEO: How to Get Your Videos to Rank

Did you know that YouTube has released several new features to help content creators increase their ranking? Starting an advertising campaign on social media platforms like YouTube

youtube ads
YouTube

The Essential Guide to YouTube Ad Campaigns

Did you know that social media marketing is quickly replacing TV ad campaigns? Social media platforms like YouTube garner millions of views every single day from around

how to advertise on YouTube
YouTube

How to Advertise on YouTube: 8 Essential Tips

How to Advertise on YouTube: 8 Essential Tips Did you know that social media marketing is becoming an in-demand niche for marketing firms across the globe?  Advertising

types of SEO
Uncategorized

What Are the Different Types of SEO?

What Are the Different Types of SEO? Starting your optimization journey? Pretty overwhelmed by all of the acronyms and marketing terminology? Thought so. The best

YouTube SEO
SEO

YouTube SEO: 9 Key Things to Remember

YouTube SEO: 9 Key Things to Remember Is video content important for your marketing? Absolutely. The amount of online videos that people have watched has nearly

managed SEO
SEO

7 Reasons to Hire a Managed SEO Company

7 Reasons to Hire a Managed SEO Company for Your Business In the United States, 65% of small business owners have worked with an SEO provider at

what is a youtube cpm
YouTube

What Is YouTube CPM? A Quick Guide

What Is YouTube CPM? A Quick Guide Did you know that there are more than 37 million YouTube channels floating around on the internet right now? Whether

YouTube CPM
YouTube

YouTube CPM: Things That Affect Your YouTube Revenue

YouTube CPM: Things That Affect Your YouTube Revenue Youtube, the world’s largest video-sharing platform, boasts a whopping 122 million active users every day. For most people, Youtube

how much does SEO cost
SEO

How Much Does SEO Cost on Average?

How Much Does SEO Cost on Average? Did you know that the first result of a Google search tends to get more than 31 percent of

enterprise seo
SEO

7 Key Benefits of Enterprise SEO

7 Key Benefits of Enterprise SEO Over 50% of all website traffic comes from an organic search. In fact, nearly 70% of online experiences start with a

tiktok marketing
TikTok Advertising

How to Advertise Your Business on TikTok

How to Advertise Your Business on TikTok TikTok now has over 1.5 billion users in total. The app even added 500 million users within less than a

benefits of local seo
SEO

7 Major Benefits of Local SEO

7 Major Benefits of Local SEO 46% of all searches on Google are people looking for local information. Many of the people doing these local searches

YouTube CPM
Media Shark

What Are the YouTube CPM Rates in 2022?

What Are the YouTube CPM Rates in 2022? Did you know that YouTube receives more than 2 billion viewers every month? With numbers like that, it’s not

seo trends
Marketing Strategies

7 SEO Trends to Look Out for in 2022

7 SEO Trends to Look Out for in 2022 SEO: it’s one of the most important parts of your website. Even the best digital marketing

managed seo
Media Shark

7 Major Benefits of Using Managed SEO Services

7 Major Benefits of Using Managed SEO Services Building your online presence while keeping your company running may feel impossible as you’re starting. However, your

digital ads
Media Shark

7 Tips To Dominating Digital Ads

7 Tips To Dominating Digital Ads Are you tired of spending all of your money on digital ads that aren’t bringing new leads? If you

google display ads
Programmatic

A Beginner’s Guide to Google Display Ads

A Beginner’s Guide to Google Display Ads Google Display Ads: are you looking to get started? Whether you’re not familiar with display ads or you

ott
OTT

What Is OTT Advertising?

What Is OTT Advertising? OTT, or over-the-top advertising, is changing how the digital marketing world works. The days of cable TV commercials are almost over,

how much are youtube ads
Uncategorized

Online Advertising: How Much Are YouTube Ads?

Online Advertising: How Much Are YouTube Ads? Netflix has been dethroned.  No, not by rival streaming programs like Amazon. But by YouTube, to the tune of

SEO for dummies
SEO

SEO For Dummies

SEO For Dummies Did you know that there are more than 1.7 billion websites floating around on the internet right now? Are you looking for the guide

advertising on youtube
Programmatic

A Beginner’s Guide to Advertising on YouTube

A Beginner’s Guide to Advertising on YouTube Google now owns about 92% of the global search market share. You’re no longer limited to creating text ads,

enterprise seo
Media Shark

What Is Enterprise SEO? A Quick Guide

What Is Enterprise SEO? A Quick Guide Compared to traditional ad campaigns, leads through SEO are eight times more likely to convert. A strong SEO strategy can

audio ad
Marketing Strategies

How to Measure an Audio Ad

Are you looking for an inexpensive way to connect with your potential clients but feel like you’re out of ideas about what to try next?

podcast advertising
Marketing Agency

7 Benefits of Podcast Advertising for Your Campaigns

Podcast advertising enables businesses to capitalize on the emerging audio industry. It provides a creative outlet for companies to reach customers. Podcasting has gained significant

display ads
Media Shark

How To Use Display Ads To Your Advantage

The value of the global advertising market is expected to reach $769.9 billion by 2024. When so many businesses have easy access to effective digital channels, it becomes even

TikTok Ads
TikTok Advertising

Is It Worth Investing in TikTok Ads?

Are you thinking of adding TikTok Ads to your advertising strategy? If you consider TikTok a kid’s app for uploading silly videos and watching funny

online video
Marketing Agency

Why the Future of Advertising is Online Video

About 80% of people recall a video they’ve watched within the past month. Meanwhile, 55% of people engage with online video every day. Videos get shared 12

integrated marketing
Marketing Agency

The What, Why and How of Integrated Marketing

Approximately 49% of businesses in the US, use digital marketing to promote their products and raise brand awareness. That’s about half of all businesses in the US,

retargeting
Media Shark

What Is Retargeting and How Does It Work?

Have you ever browsed a product on a website and then seen that same product following you around the internet for weeks afterward? That’s retargeting

online video advertising
Uncategorized

Online Video Advertising in 9 Simple Steps

Did you know that video marketing is used by 86% of businesses to improve brand awareness? Approximately 87% of video marketers have reported that video ads

Native Advertising Work
Marketing Agency

How Does Native Advertising Work?

Did you know that 90% of consumers still term targeted ads as annoying, despite advertisers tailoring them to their needs and interests? Keep reading to understand how

seo companies
Marketing Agency

How SEO Companies Can Help Improve Your Company

According to research, the first organic google result gets an average CTR rate of an impressive 28.5 percent. The second position garners about 15 percent, the

ad campaign
Programmatic

How to Develop a Successful Online Ad Campaign

According to research, global advertising surpassed a hefty $559 billion, which means online ads are fierce competition. Creating a successful ad campaign could seem intimidating, to

YouTube CPM Calculator
YouTube

YouTube CPM Calculator

YouTube CPM Calculator Imagine getting to make more money from your YouTube videos as a creator. Or if you’re an advertiser, think about what it

youtube cpm
YouTube

Everything You Need to Know About YouTube CPM

Viewers are shifting their focus from pay-per-view video streaming to online platforms. YouTube has seen a steady increase in subscribers and users over the past

ad exchange
Programmatic

What is Ad Exchange and How Does It Work?

What is Ad Exchange and How Does It Work? This year the digital ad space defied all pandemic-related odds and rebounded 12%. When breaking the

ad network
Programmatic

How to Incorporate an Ad Network Today

How to Incorporate an Ad Network Into Your Marketing Campaign When the Internet first became prominent, some businesses saw the writing on the wall and

Cookies
Marketing Strategies

Google Guides: Are Cookies Going to Be Banned?

Google Guides: Are Cookies Going to Be Banned? Did you know that Google makes up 56% of the web browser market? Additionally, it also accounts

Audio Ads
Programmatic

Listen Up: What Are YouTube Audio Ads?

Listen Up: What Are YouTube Audio Ads? YouTube is a $15 billion a year ad revenue business.  And that will grow even more with YouTube music audio

YouTube Ad
Marketing Strategies

Ad Answers: How Much Does a YouTube Ad Cost?

Ad Answers: How Much Does a YouTube Ad Cost? Did you know that YouTube gets 30 million visitors every day? This makes the video-sharing platform the biggest

digital marketing trends
Uncategorized

5 Digital Marketing Trends For 2021

5 Of 2021’s Biggest Digital Marketing Trends In 2020, digital marketing surpassed traditional marketing in revenue generated. That trend didn’t reverse in 2021, and it doesn’t look

youtube ads
YouTube

Everything You Need to Know About Youtube Ads

YouTube advertising is effective. 80% of brands reported a higher return on investment from advertising on YouTube than on TV. All video ads stay in a person’s

YouTube

YouTube CPM: What Is a Good CPM for YouTube Ads?

With more than 2.3 billion users and growing, YouTube remains one of the largest platforms out there. If your business isn’t taking advantage of this exposure, you

Marketing Strategies

Media Shark: What is Display Advertising?

Apparently, the average American sees more than 5,000 adverts a day. Display advertising can be the key to helping you grow your business today! If some

ppc specialist
ppc specialist

The Benefits of Outsourcing a PPC Specialist in 2020

About 45% of small businesses are already using pay-per-click (PPC) search marketing. If you’re not, you’re already falling behind your competitors. With PPC advertising, you can generate

Programmatic

Video Marketing With Media Shark

Having custom video content for your business would truly take your digital marketing efforts to the next level and Media Shark is your premier video

Marketing Strategies

8 Benefits of Mobile SEO with Media Shark

There is no doubt that search engine optimization is vital for a successful marketing strategy, but people aren’t using desktops for search anymore. You need

Marketing Agency

Mobile SEO with Media Shark for Small Businesses

There is no doubt that search engine optimization is vital for a successful marketing strategy, but people aren’t using desktops for search anymore. You need

Marketing Agency

7 Common WordPress Mistakes You Need To Fix

WordPress is a fantastic tool for building websites. It has a number of options for customizing and enhancing features. It is easy to use for

wordpress design company
Wordpress Design

Your Guide to WordPress Design Company in 2020

WordPress is behind at least 30% of the internet, which amounts to around 455 million websites. It has the largest share of all platforms, making it

Media Shark

How Does Media Shark Plan for a Product Launch?

How Does Media Shark Plan for a Product Launch? Almost 75% of product launches fall short of projected profits. Some even fail, especially within the programmatic space.

Uncategorized

YouTube Advertising 101: Getting Started

With two billion users logging in monthly, YouTube is the world’s second-largest social media platform. If you’re looking to reach a new audience or add a new

Uncategorized

8 Great YouTube Advertising Ideas

8 Great YouTube Advertising Ideas for Your Business Did you know there are over two billion active monthly YouTube users? That means you could get millions of

Uncategorized

How to Optimize YouTube Ads

How to Optimize YouTube Ads: The Guide You Need Youtube has more than 2 billion unique visits every month, and according to Youtube’s CEO, that number is

Marketing Agency

Signs It’s Time to Switch Marketing Agencies

Many businesses hire marketing agencies expecting top-notch results. In reality, this isn’t always the case. This is especially true when it’s your first time hiring

Uncategorized

Online Marketing Strategies to Help You Win

Online Marketing Strategies to Help You Win The internet is a popular place and has attracted 40% of the world’s population. That’s more than 4.5 billion people

What Does RTB Stand For?

What Does RTB Stand For? RTB stands for real-time bidding, it is has become a popular method that advertisers use to place ads online. However, you may

YouTube CPM
YouTube

What Is a YouTube CPM Rate?

What Is YouTube CPM? Since launching in 2005, YouTube has become one of the most influential platforms in internet history. Which is why advertisers like

online marketing strategies
Marketing Strategies

Online Marketing Strategies to 10X Your Advertising

Online Marketing Strategies to 10X Your Advertising The internet is a popular place and has attracted 40% of the world’s population. That’s more than 4.5 billion people

demand side platforms
RTB

RTB Marketing and Demand-Side Platforms

Demand side platforms or also known as DSPs are changing the marketing game forever and the same can be said for real time bidding. Two

programmatic platforms
Programmatic

The Truth About Programmatic Platforms

The 101 on Programmatic Platforms The digital advertising domain is growing complex and the same can be said within what exists within the programmatic platforms.

Tampa marketing agency
Marketing Agency

How to Find the Right Tampa Marketing Agency

How to Find the Right Tampa Marketing Agency With the emergence of the internet, nearly anything seems possible for businesses. Just like the lottery, anyone

programmatic platforms
Programmatic

Programmatic Platforms and RTB Marketing

Programmatic Platforms and RTB Marketing The digital advertising domain is growing complex. As a result, many marketers have turned to programmatic platforms and RTB marketing.

youtube cpm
YouTube

YouTube CPM Rates: What you Need to Know

That funny cat video you just watched on Youtube might just be making someone some very real cash. Your business can benefit from that exposure,

demand side platform
RTB

Full Breakdown On What Is a Demand Side Platform?

101 Guide To What Is a Demand Side Platform Ahead of all other media channels, programmatic advertising is growing the fastest. But does this help your business? You’ll want

ppc specialist
Marketing Strategies

11 Skills Your PPC Specialist Should Have

Did you know that 7 million advertisers invested a total of $10.1 billion in PPC? That’s a clear indication of how crucial it is! Having the right