Programmatic Video Advertising: How Does It Work?

Did you know that customers retain 95% of the information contained in videos? Videos have the potential to keep your services and products in the mind of the consumer.

Even if customers don’t want to buy something from you right away, they will remember you and think of you later.

Creating informative and entertaining videos is one thing and reaching customers through video is another. You need to know where to place your videos to get in front of the consumer.

To precisely target potential customers, use programmatic video advertising buying solutions.

Not sure what programmatic video is exactly? Keep reading to learn about it and how it works.

What Is Programmatic Video Advertising?

Programmatic video advertising involves a range of technological solutions that enable real-time digital advertising trading.

Rather than spending hours negotiating with platforms, marketers can improve their ads and targeting. This is because programmatic advertising allows digital ads to be purchased with algorithms.

This process allows marketers to reap the following benefits:

  • Cost-efficiency
  • Transparent pricing
  • Automation
  • Precise metrics and campaign targeting

Through real-time bidding (RTB) algorithms, the process of trading digital media is automated. Both platforms and marketers can achieve higher profits with this solution.

If you win a bid for ad placement, your video ad will be up on the selling platform as agreed upon.

How Does Programmatic Advertising Work?

Programmatic advertising works through the interaction of media buyers and media sellers.

Sellers, media platforms and publishers, add their inventory to the supply-side platform (SSP).

Advertisers sign up through the demand-side platform (DSP) and set their campaign options and budgets. DSP will define the relevance of an ad impression based on the following information:

  • Campaign settings
  • Targeting segments
  • Bid request information

If an impression is relevant to the video ad, DSP bids on it for the marketer. The auction takes place in the ad exchange.

The ad buying process starts at the RTB auction. The highest bidder wins the ad placement. The winner’s ad is then served to the audience.

Once the campaign ends, the marketer can use data from the platform to analyze the effectiveness of the campaign. If necessary, they can optimize it in the DSP.

How to Create a Programmatic Campaign

Programmatic video trends are rising because of the various benefits they bring to marketers and publishers. Because of this, it’s best to learn how to create a programmatic video campaign.

We’ll outline the steps you should take before jumping headfirst into programmatic video.

Define Campaign Goals

Whether you are aware of how programmatic video advertising works or not, you always need to start by defining the goals of your campaign.

Programmatic advertising is mainly used to increase conversions. However, programmatic marketing can be used throughout each stage of a customer’s journey.

Some of the common advertising goals marketers want to achieve are:

  • Raising brand awareness
  • Activating leads
  • Retargeting

A lot of marketers use video ads to increase brand awareness. In fact, video marketing strategies are responsible for an average rise of 54% in brand awareness.

You can measure the performance of programmatic video campaigns with these metrics:

  • Click-through rate (CTR)
  • Number of impressions
  • Cost per action (CPA)
  • Return on investment (ROI)

Once you define your goals, be aware of the metrics you can use to track whether or not you reach your goals.

Choose the Right Ad Channels

One of the most important decisions you can make when creating a video campaign is the ad channel you choose. The channel you pick dictates which audience sees your videos.

The number of available advertising channels has increased because of the popularity of programmatic videos.

Programmatic video formats are generally divided into in-stream and out-stream ads. In-stream ads are shown before, during, or after video content on streaming services or websites like YouTube.

Out-stream ads are embedded into the website’s content as banners.

Omnichannel vs. Single-Channel Ads

Depending on your audience, you’ll want to decide between omnichannel and single-channel ads.

If your audience uses different gadgets like mobile, PC, CTV, etc., you can address them using multichannel marketing.

If you have data that suggests your audience consumes content on mobile or television a majority of the time, single-channel advertising will get you the most bang for your buck.

You can efficiently advertise without spending money on channels that don’t work for you through single-channel platforms.

Configure Campaign Settings

After deciding on your goals and the right tools, you can begin to configure campaign settings.

The process of signing up at the DSP is simple. You’ll create an account and then choose a type of campaign. In this case, you’d choose the video campaign format.

Next, you’ll fill out basic campaign settings like the campaign name and domain. Activate the function that allows the system to automatically increase click-through rates for your video ad.

To set up targeting, you’ll have the choice to select different targeting options based on your ad needs. The options may vary depending on the publisher you choose, but may include the following:

  • Age range
  • Connection type
  • Browser
  • Device type
  • Language

Lastly, you’ll want to configure your budget to set total daily budget limits. You might also be able to look into the inventory section to fine-tune the results. For example, you can request inventory from specific SSPs.

Should You Try Programmatic Video?

Programmatic video advertising seems complicated. But, once you learn how the process works, you’ll find that programmatic video is a more convenient way to market.

Programmatic video makes the media buying and selling processes simple and effective. To create a video campaign, analyze your goals, choose the best ad channels based on your audience, and configure campaign settings.

Sign up at a DSP, build the best campaign, and allow the platform to buy ad space in real-time.

Stop wasting your advertising dollars and allow us to take your videos further. Contact us now to learn how we can help.

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