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Videos have become an incredibly popular medium for both entertainment and information. With the rise of YouTube, Netflix, and TikTok, people spend more time watching videos online.
To capitalize on this trend, companies have turned to programmatic video advertising to create a strong connection with their target audience. This medium allows companies to educate, entertain, and engage viewers, all while promoting their products or services.
This article will explore the world of programmatic video advertising and its projected trends for 2024.
Like programmatic advertising in general, programmatic video advertising uses automated technology to reach relevant audiences while consuming media. The media can be video streaming platforms, websites, or mobile apps. Advertisers use data and algorithms to decide which ads to display to a particular viewer.
The main difference between traditional and programmatic video advertising is the manual nature of the former. Traditional video ads require human interaction for placement, negotiation, buying, and selling. In contrast, programmatic ads rely on algorithms and data to automate the process.
As we move towards 2024, programmatic video advertising is expected to grow and evolve. Let’s look at some projected trends for this form of advertising.
Video content is already dominating the digital landscape and is predicted to continue in 2024. According to a study by Zenith Media, video ad spending is expected to account for nearly 30% of the overall advertising market in 2026.
This growth is driven by the increasing popularity of video streaming platforms such as SVOD (Subscription Video on Demand), FAST (Free Ad-Supported Television), and AVOD (Advertising Video on Demand).
With more consumers turning to these platforms for their entertainment needs, advertisers are eager to reach them through targeted programmatic video ads.
As more people shift towards consuming content on connected devices such as smart TVs and mobile devices, advertisers are adjusting their strategies accordingly. In 2024, we expect a significant increase in programmatic video ads targeted towards these platforms.
According to a report by eMarketer, US TV and connected TV ad spend is expected to reach nearly $100 billion in 2027. CTV Advertising will primarily drive this growth, with a predicted increase of $5.50 billion in 2024 alone.
Mobile video ads for acquiring an audience user base have been growing steadily in recent years. Mobile devices are convenient for consuming video content and provide data invaluable for targeted programmatic advertising.
The launch of TikTok Shopping in the USA has recently allowed users to purchase products directly within the app. This trend of shoppable video ads and interactive formats is expected to gain even more traction in 2024. This will allow advertisers to not only showcase their products or services but also give consumers the convenience of purchasing without.
As consumers become more accustomed to making purchases online, incorporating a call-to-action in video ads can significantly improve conversions. Interactive formats such as 360-degree videos and virtual reality experiences also provide a unique and engaging way for brands to connect with their audience.
Data and AI have been major players in programmatic advertising, and this trend is only expected to continue. With the help of machine learning algorithms, advertisers can analyze vast amounts of data to make informed decisions about targeting their audience.
Augmented reality and virtual reality technologies also allow advertisers to collect data about a consumer’s engagement with their ad. Recent AR campaigns by IKEA, PEPSI Max, and Pizzahut have shown promising results and are expected to become more popular in the coming years.
The video ad formats for programmatic advertising are diverse and offer unique ways to engage with viewers. Augmented reality and virtual reality technologies also allow advertisers to collect data about a consumer’s engagement with their ad. Recent AR campaigns by IKEA, PEPSI Max, and Pizzahut have shown promising results and are expected to become more popular in the coming years.
In-stream ads are videos that play before, during, or after a video content. They are often referred to as pre-roll, mid-roll, or post-roll ads. These ads can be skippable or non-skippable and typically run on video streaming platforms such as YouTube or OTT (Over-the-Top) streaming services.
Out-stream ads, or native ads, are placed within non-video content such as articles or social media feeds. These ads autoplay when in view and can be clicked to expand into a larger video ad. They are often used for brand awareness campaigns and are ideal for targeting mobile device users.
Connected TV ads are video ads on internet-connected smart TVs or streaming devices such as Roku, Amazon Firestick, or Apple TV. These ads are typically non-skippable and offer a larger screen for advertisers to showcase their message. The cord-cutting trend and the rise of streaming services have made CTV ads attractive for programmatic advertising.
Rich media ads are interactive video ads that allow viewers to engage with the content. These ads can include a call-to-action, polling, or a simple game. You may have seen these ads on social media platforms, where users can swipe or tap to interact with the ad.
In-game ads are advertisements that appear within video games. They can be static or dynamic (changing based on user behavior). These ads provide a non-intrusive way for advertisers to reach a highly engaged audience. For example, a racing game could feature billboards with real-life brand ads on the virtual tracks.
Programmatic video advertising has become a popular choice for many advertisers. Here are some reasons why it will continue to be a top choice in 2024.
When done right, video ads can be a powerful medium to deliver a brand’s message. The best way to capture audience attention is through video ads that are relevant, engaging, and memorable. Programmatic advertising allows for targeted delivery of video ads to the right audience, increasing the chances of delivering a clear and impactful message.
Video ads are more likely to catch a viewer’s attention and keep them engaged for longer. According to Forbes, “Viewers retain 95% of a message when they watch it in a video compared to 10% when reading it in text.” The higher engagement and retention rates of video ads also translate into a higher return on investment (ROI) for advertisers.
With programmatic video advertising, brands have the flexibility to create dynamic ad formats that can be customized based on the viewer’s interests or behavior. This personalization can help to create a more meaningful and relevant experience for the viewer, leading to higher engagement and conversion rates.
Programmatic video advertising offers access to a vast amount of data that can be used to target and optimize ad campaigns. Advertisers can gain insights into their audience’s behavior, interests, and preferences using data and AI. This information can create more targeted ad campaigns that resonate with the viewers.
While programmatic advertising is often associated with consumer brands, it also offers great potential for B2B marketing. With the ability to target specific industries, job titles, and companies, B2B marketers can reach their desired audience more efficiently through programmatic video ads.
To ensure a successful programmatic video advertising campaign, there are some things that advertisers should consider.
Ad fraud is a major concern in the digital advertising industry, and programmatic video ads are not immune to it. Advertisers should know the potential for ad fraud and work with reputable partners and platforms to minimize its impact on their campaigns.
With programmatic advertising, there is always a risk that ads may end up next to inappropriate or offensive content. Advertisers should carefully consider brand safety measures and work with partners with strict content guidelines to protect their brand’s reputation.
The success of a programmatic video advertising campaign also relies on the quality and relevance of the ad creative. Advertisers should prioritize creating high-quality, visually appealing, engaging video ads relevant to their target audience.
One of the key benefits of programmatic advertising is the ability to track and measure the success of ad campaigns in real time. To ensure a successful campaign, advertisers should regularly analyze data and make necessary optimizations to improve performance throughout the campaign. This may involve adjusting targeting, creative elements, or placement strategies.
Navigating programmatic video advertising is not always easy. To maximize the benefits and success of your campaigns, consider partnering with an experienced programmatic advertising provider. They can offer expertise, resources, and technology to help you best utilize programmatic video advertising for your brand.
VenziMedia is a leading programmatic video advertising platform that can help you acquire, engage, and retain your desired audience. With their data capabilities, advanced targeting options, and brand safety measures, VenziMedia can help you launch successful programmatic video advertising campaigns in 2024.
