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Market Research Group

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Ezra Rogers
Ezra Rogers

Programmatic Video Buying Fixed

Programmatic advertising is the use of automated technology for media buying, as opposed to traditional (often manual) methods of digital advertising. Programmatic media buying utilizes data insights and algorithms to serve ads to the right user at the right time, and at the right price.

programmatic video buying

Ad inventory is usually bought via a real-time auction. Using programmatic channels, advertisers can buy per impression, thereby targeting the right audience. Since the process is automated, programmatic media buying guarantees speed and efficiency that is not matched in the traditional media buying.

The traditional media buying process involves a lot of manual work, typically with several requests for proposals (RFPs), human negotiations and manual insertions of the orders (IOs), which makes it slow and inefficient. Additionally, ads are purchased in bulk and advertisers have little control over the inventory and placement.

Programmatic advertising is the use of automated technology for media buying (the process of buying advertising space), as opposed to traditional (often manual) methods of digital advertising. Programmatic media buying utilizes data insights and algorithms to serve ads to the right user at the right time, and at the right price.

Programmatic ad buying is the use of software to buy digital advertising. While the traditional method includes requests for proposals, tenders, quotes, and negotiation, programmatic buying uses algorithmic software to buy and sell online display space.

Programmatic advertising is a powerful tool and global spend in 2020 topped $129 billion and is expected to surpass $150 billion in 2021. The United States is the biggest spender on programmatic ads, but the UK and China are catching up fast.

Now, with programmatic advertising, you can rely on an algorithm that will determine where your ad money is best spent. All you have to do is feed your programmatic solution information about your campaign, audience, and key performance indicators, and the algorithm will do the hard work!

Typically, programmatic ads are viewable between 44% and 55%, but eMarketer estimates fraud will cost digital advertisers from $6.5 billion to $19 billion each year. Consumer privacy is also an issue for advertisers especially on mobile and Connected TV (CTV).

So how can your business deal with fraud? The first thing to do is look at budget vs. reach. Marketers have been fixated on reach when it comes to programmatic advertising which can leave campaigns open to abuse through bots. If a deal looks too good to be true when bidding for ad space, then it probably is! Try not to fixate on reach but couple it with traffic quality to avoid generating fake traffic.

Hotel group IHG, the parent company that owns the Holiday Inn and Intercontinental chains, began running programmatic ads to encourage users to book directly with them, rather than with third-party sites like Expedia or

Working in close collaboration with Google using display and Video 360, Audi took a data-driven approach that combined all customer data rather than relying on siloed information. That way, by using programmatic techniques the marketing team could optimize its most valuable consumer touchpoints.

In addition to capturing behavioral data for improved marketing segmentation, the brand offered users the chance to customize their dream car online from a choice of 6,000 possible combinations. These individual designs were then used to create personalized dynamic ads that resulted in double the efficiency of standard ads. While buying programmatic ads resulted in a conversion rate four times higher than ads bought through traditional methods.

RTB, is just one type of programmatic advertising. While static auctions for online ad space involve the purchase of thousands of impressions upfront, RTB enables bidding for individual ad impressions, which makes it much more focused than bulk ad buying.

Programmatic advertising gives advertisers and publishers real-time access to data about ad placements and activity, which helps to maximize transparency. The next step is achieving transparency in programmatic costs, which is a key issue facing the industry.

Programmatic ad buying gives advertisers access to a massive ad inventory across multiple ad exchanges and networks with a click of the mouse, including premium inventory and private marketplaces with high-quality traffic. With programmatic, advertisers can make sure to maximize the relevancy of their ads for specific targeted audiences and improve ROAS.

When it comes to programmatic, the future is already here. Programmatic advertising spend is increasing every year, and the remarkable growth extends beyond display ads to native advertising, mobile advertising and video advertising. By 2023, programmatic video advertising spend in the US is forecast to reach close to $75 billion.

Programmatic advertising works on a CPM (Cost Per Mille), or Cost Per Impression, model. CPM is the price per 1000 ad impressions that appear on a website. Programmatic ads CPM is usually believed to cost somewhere between $0.50 and $2. Certainly, programmatic CPM is far cheaper than other platforms, such as social media networks where CPM can go as high as an average $6-$7.

Although programmatic spend is on the up and up, for many digital marketers, lack of understanding of the way programmatic advertising works is a huge hindrance. As the use of programmatic ad tech overtakes the traditional advertising model, the importance of building strong advertiser-publisher relationships is declining and the need to gain technical knowledge of programmatic technology increases.

Once ready to get started, begin with developing your audience personas, advertising strategy, and KPIs. This will help you in your research about which programmatic ad exchanges and ad networks are right for you.

Programmatic advertising is a method of buying and selling ad real estate in real time using a software solution such as a programmatic ad network. The process is almost entirely automated and requires very little effort from publishers and advertisers. Programmatic video advertising, then, is programmatic advertising focused on video ad formats.

So what does the process of programmatic advertising look like exactly? It is quite complex, and it can vary depending on the platform, ad type, and transaction type. Overall, however, it involves several steps:

Are you a publisher looking to get started with programmatic video advertising? If so, the first thing you need is ad real estate. In other words, you should either have a library of videos that you want to monetize or a platform where you want to serve outstream or in-banner video ads.

Previously, programmatic campaigns has been reserved for larger budgets and media agencies, but the rapid rise of self-service tools (like Match2One) gives smaller brands increased access to the technology and offers them the ability to compete with larger brands without going through expensive middlemen.

The advertiser would then increase the bid for these visitors, perhaps even outbidding large multinational brands. This type of real-time media buying was the beginning of programmatic technology.

As a digital agency for smaller fashion brands, direct buys are out of reach, but if there was an opportunity to have premium pre-bid inventory on large sites like Vogue or Runway at programmatic type budgets, we would not pass that by.

Programmatic advertising is the process of automatically buying and selling digital advertising space. Before programmatic advertising, ordering, setting up, and reporting on ads all had to be carried out manually. The process is streamlined through programmatic advertising, making it more effective and efficient. Any formats and channels can be accessed programmatically, thanks to programmatic platforms that have built up their ad inventory and database.

Programmatic advertising is one way for businesses/enterprises to advertise on digital screens. Before programmatic ad buying, digital ads were bought and sold manually, making the process expensive and unreliable.

Programmatic advertising is now reaching new heights, thanks to publishers enabling native ads on their websites. The main reason for publishers embracing programmatic native advertising is that this ad space can be less affected by ad blockers than other ad types and platforms.

We can expect programmatic advertising to continue to grow. In the US, programmatic technology is projected to account for 86.5% of digital display advertising spending in 2021, according to a study by eMarketer.

When an advertiser wants to launch a digital campaign to promote their product or service, they contact their programmatic ad agency or trading desk. The agency uses a demand-side platform (DSP) to automate the process of buying ad impressions to meet the goal of the campaign. 041b061a72


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